Expands presence to 21 states and union territories in the country; First loan disbursed in Chennai
Focuses on secured lending through Business Correspondent, MicroSmall and Medium Enterprises (MSME) and housing finance
Chennai, October 31, 2018: Satin Creditcare Network Limited (“SCNL”) [BSE: 539404; NSE: SATIN], the second largest microfinance company in India, has commenced operations in South India with the first loan disbursement in Chennai, Tamil Nadu.With this, SCNL is now operationallypresent in 21 states and union territories. As a part of its Pan-India expansion plan, SCNL will also start operations in
Karnataka later this year.
SCNL’s foray into South India comes in a time when the region has shown tremendous growth for microfinance industry. The MFIN Micrometre June 30, 2018reported that Tamil Nadu and Karnataka registered microfinance gross lending portfolio (GLP) of Rs 4,917 cr. and Rs 6,259 cr. respectively as on June 30, 2018.
The company also plans to enter Karnataka market later this year. With a total asset under management (AUM) of INR 6,025.70 cr. at Q1FY19, and over 30 lakh financially active women as its clients, SCNL already has a strong foothold in North –East, Uttar Pradesh, Bihar, Madhya Pradesh and Punjab. Last year, it started microfinance operations in North Eastern states, i.e., Assam, Meghalaya and Tripura.
Talking about the expansion, Dev Verma, Chief Operating Officer, Satin Creditcare Network Limited said, “South India is a high potential market for microfinance and accounts for about 26 percent of the total NBFC-MFI gross lending.Therefore, our presence in Tamil Nadu will help us target a larger client base and grow exponentially in the coming months.”
Elaborating further on the business strategy, H.P. Singh, Chairman and Managing Director, Satin Creditcare Network Limited said, “The commencement of our operations in Tamil Nadu is an important milestone towards our Pan-India presence. We are also focussing on increasing the quality of our portfolio by diversifying into other business verticals such as MSME lending, housing finance and Business Correspondent.”
To empower its clients with better quality of life, SCNL also extends solar, water, and sanitation loans. The company has partnered with global firms such as TWP, Greenlight Planet and d.light to disburse solar loans in Uttar Pradesh, Bihar, Haryana, Punjab, Rajasthan, Orissa, Assam, and Jharkhand. Through its partnership with Water.org, SCNL has disbursed water and sanitation loans in Bihar.