Svatantra Microfin

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.[5][6] Svatantra was established with an aim to address the growing income gap in India, and the company is dedicated towards the financial inclusion of rural women.[7]

In 2014, the organisation won Gold Award in the start-up category by the Skoch Financial Inclusion and Deepening Award.[8]

Company declared profitability in three and a half years.[9]

Svatantra was the first microfinance institution to receive the Non-Banking Financial Company – Microfinance Institution (NBFC-MFI) license from the Reserve Bank of India.[10] Beginning 2016, ICRA rated Svatanta A- with stable outlook for the Rs. 100.00 crore bank facilities[11] and an MFI grade of M3+ stating that the company is able manage its microfinance activities in a sustainable manner.[12]

In 2017, Svatantra launched Saathi, an end-to-end cashless solution.[11] Svatantra also uses Aadhaar to determine credit score, using biometric identification.[8] Company also has a mediclaim product.[11]

Svatantra has 100% cashless disbursements[13] and has the lowest lending rates of any MFI in India.[14]

Svatantra Microfin has Rs 570 crore assets under management.[14] The company has 190+ branches spread across 10-12 states.[10][12] The company is currently funded by nine financial institutions, including public and private sector banks and NBFCs.[12]

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.[14] 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.[5]