Svatantra Microfin

Svatantra Microfin
Microfinance Organisation [1]
Industry Financial services
Founded February 17, 2012
Founder Ananya Birla
Headquarters Mumbai, India
Area served
 Maharashtra, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Bihar, Odisha, Gujarat, Rajasthan
Products Microfinance
Website http://www.svatantramicrofin.com/

Svatantra Microfin (Sanskrit: स्वतंत्र) is mid-size Indian microfinance organisation based in Mumbai.[2] Since receiving a license from the Reserve Bank of India in 2013, Svatantra has provided financial and non-financial solutions to encourage entrepreneurship in rural areas, primarily amongst women.[3][4]

Svatantra, which means freedom in Hindi, currently operates 130 branches serving 15,000 villages in eight states across India.[5]

History

Svatantra Microfin was founded in 2012 by Ananya Birla, Co-Chairperson of ASSOCHAM’s Microfinance Council of India and daughter of Indian industrialist Kumar Mangalam Birla.[6][7] Svatantra was established to address the growing income gap in India, dedicated towards financial inclusion of rural women.[8]

In 2014, the organisation won a Gold Award in the start-up category at the Skoch Financial Inclusion and Deepening Award in 2014.[9]

Growing at a compound annual growth rate of 220 per cent,[10] after three and a half years, Svatantra declared profitability.[11]

Svatantra was the first microfinance institution to receive the Non-Banking Financial Company – Microfinance Institution (NBFC-MFI) license from the Reserve Bank of India.[12] Beginning 2016, the ICRA assigned the long-term rating of ICRA A- with stable outlook for the Rs. 100.00 crore bank facilities[13] and an MFI grade of M3+ for Svatantra's ability to manage its microfinance activities in a sustainable manner.[10]

In 2017, Svatantra launched Saathi, an end-to-end cashless solution, for an entire spectrum of operations in areas such as loan originating system, loan management system and collections.[13] Svatantra also uses also uses Aadhaar to determine credit score, using biometric identification.[9] In partnership with third-party service providers, the company has also created affordable, cashless mediclaim product for up to five family members.[13]

Svatantra is the only microfinance firm with 100% cashless disbursements[14] and offers the lowest lending rates of any MFI in India.[5]

Today Svatantra Microfin has Rs 570 crore assets under management.[5] The company plans to expand its footprint to around 190 branches spread across 10-12 states.[12][10] The company is currently funded by nine financial institutions, including public and private sector banks and NBFCs.[10]

Application of Microcredit

Svatantra's microcredit policy is based on a group lending model where members take unsecured loans to fund a business or other income generating activity and stand guarantee for one another in their group ensuring credit discipline and prompt repayments through peer pressure.[3]

It offers livelihood-related loans at 19.25-20.00% interest rate, lowest in India.[5] It disburses money through National Electronic Funds Transfer (NEFT); and also helps its clients open bank accounts, adhering to one of its core missions of financial inclusion.[6]

The company uses an integrated software with branches being fully computerized. In addition, the field staff uses an Android app for updating the collection data on-field itself, on a real-time basis.[15][16]

References

  1. ↑ "Birla heiress lends to poor amid banking licence bid". Livemint.com. 2013-06-24. Retrieved 2015-05-05.
  2. ↑ "Svatantra Microfin launches cashless mobility solution". www.estrade.in. Retrieved 2018-06-29.
  3. 1 2 Bloomberg (2013-06-24). "Birla heiress lends to poor amid banking licence bid". https://www.livemint.com/. Retrieved 2018-06-29. External link in |work= (help)
  4. ↑ "Ananya Birla | 2018 Forbes Asia Forum: The Next Tycoons". www.forbesasianexttycoons.com. Retrieved 2018-06-29.
  5. 1 2 3 4 Ray, Atmadip (2018-04-09). "Svatantra Microfin lowers lending rate to 19.25%". The Economic Times. Retrieved 2018-05-10.
  6. 1 2 Deepti Chaudhary (29 October 2015). "Ananya Birla: Her father's daughter". Forbes India. Retrieved 2 November 2015.
  7. ↑ Rodrigues, Janice. "This pop star means business". www.khaleejtimes.com. Retrieved 2018-06-29.
  8. ↑ "Interview: Ananya Birla On Why India Needs More Brave Women Entrepreneurs. | CEOWORLD magazine". CEOWORLD magazine. 2017-09-15. Retrieved 2018-06-29.
  9. 1 2 Sharma, Sahib (2017-02-22). "NPCI begins pilot project to digitize transactions in microfinance sector". https://www.livemint.com/. Retrieved 2018-06-29. External link in |work= (help)
  10. 1 2 3 4 "Svatantra plans to have 190 branches". The Economic Times. 2017-06-30. Retrieved 2018-06-29.
  11. ↑ Hetavkar, Nikhat (2017-06-30). "Svatantra Microfinance reaches break even in FY17". Business Standard India. Retrieved 2018-06-29.
  12. 1 2 "Svantantra Making Headway in the Differentiated Banking Space". Moneycontrol. Retrieved 2018-06-29.
  13. 1 2 3 "Svatantra Microfin launches cashless solution 'Saathi'". @businessline. Retrieved 2018-06-29.
  14. ↑ "Svatantra Microfin Lowers Interest Rate by 350 Basis Point". The New Indian Express. Retrieved 2018-06-29.
  15. ↑ "MicroFin | AIM2Flourish". AIM2Flourish. AIM2Flourish. 2018-06-28. Retrieved 2018-06-29.
  16. ↑ ICRA (February 2016). "Svatantra Microfin Private Limited". ICRA India. Retrieved 9 May 2016.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.