Svatantra Microfin
| Microfinance Organisation[1] | |
| ISIN | 🆔 |
| 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, Jharkhand, West Bengal, Punjab, Haryana, Assam, Tripura, Karnataka |
| Products 📟 | Microfinance |
| 💎 AUM | ₹7,000 crore (in 2023) |
| Members | |
Number of employees | |
| 🌐 Website | http://www.svatantramicrofin.com/ |
| 📇 Address | |
| 📞 telephone | |
Svatantra Microfin (Sanskrit: स्वतंत्र; Svatantra, "freedom" in Hindi) is a mid-size Indian microfinance organisation based in Mumbai.[2] Since receiving a license from the Reserve Bank of India in 2013, Svatantra has encouraged entrepreneurship in rural areas, primarily amongst women.[3][4]
History[edit]
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 the aim of addressing the growing income gap in India and the financial inclusion of rural women.[7]
In 2014, the organisation won the Gold Award in the start-up category of the Skoch Financial Inclusion and Deepening Award.[8]
The 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 in 2016, ICRA rated Svatantra A − with a stable outlook for the ₹100.00 crore bank facilities[11] and an MFI grade of M3+, stating that the company was able to manage its microfinance activities in a sustainable manner.[12]
In 2017, Svatantra launched Saathi, an end-to-end cashless service.[11] Svatantra also uses Aadhaar to determine credit scores using biometric identification.[8] The 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 ₹7,000 crore of assets under management.[14] The company has 804+ branches spread across 19 states.[10][12] The company is currently funded by nine financial institutions, including public and private sector banks and NBFCs.[12]
In August 2023, it was announced that Svatantra Microfin had acquired the Bengaluru-headquartered microfinance company, Chaitanya Microfinance, from Navi Group for $178.5 million.[15] In November 2023, Svatantra Microfin successfully concluded the acquisition of Sachin Bansal-backed Chaitanya Microfinance.[16]
Application of Microcredit[edit]
Svatantra's Microcredit policy is based on a group lending model, in which participants take out unsecured loans to finance businesses or other sources of revenue while serving as one another's group's surety, ensuring 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 helps its clients open bank accounts.[5]
References[edit]
- ↑ "Birla heiress lends to poor amid banking licence bid". Livemint.com. 2013-06-24. Retrieved 2015-05-05.
- ↑ "Svatantra Microfin launches cashless mobility solution". www.estrade.in. 30 June 2017. Retrieved 2018-06-29.
- ↑ 3.0 3.1 Bloomberg (2013-06-24). "Birla heiress lends to poor amid banking licence bid". Mint. Retrieved 2018-06-29.
- ↑ "Ananya Birla | 2018 Forbes Asia Forum: The Next Tycoons". www.forbesasianexttycoons.com. Retrieved 2018-06-29.
- ↑ 5.0 5.1 Deepti Chaudhary (29 October 2015). "Ananya Birla: Her father's daughter". Forbes India. Retrieved 2 November 2015.
- ↑ Rodrigues, Janice. "This pop star means business". www.khaleejtimes.com. Retrieved 2018-06-29.
- ↑ "Interview: Ananya Birla On Why India Needs More Brave Women Entrepreneurs. | CEOWORLD magazine". CEOWORLD magazine. 2017-09-15. Retrieved 2018-06-29.
- ↑ 8.0 8.1 Sharma, Sahib (2017-02-22). "NPCI begins pilot project to digitize transactions in microfinance sector". Mint. Retrieved 2018-06-29.
- ↑ Hetavkar, Nikhat (2017-06-30). "Svatantra Microfin reached break even in FY17". Business Standard India. Retrieved 2018-06-29.
- ↑ 10.0 10.1 "Svantantra Making Headway in the Differentiated Banking Space". Moneycontrol. 29 March 2016. Retrieved 2018-06-29.
- ↑ 11.0 11.1 11.2 "Svatantra Microfin launches cashless solution 'Saathi'". @businessline. Retrieved 2018-06-29.
- ↑ 12.0 12.1 12.2 "Svatantra plans to have 190 branches". The Economic Times. 2017-06-30. Retrieved 2018-06-29.
- ↑ "Svatantra Microfin Lowers Interest Rate by 350 Basis Point". The New Indian Express. Retrieved 2018-06-29.
- ↑ 14.0 14.1 14.2 Ray, Atmadip (2018-04-09). "Svatantra Microfin lowers lending rate to 19.25%". The Economic Times. Retrieved 2018-05-10.
- ↑ Singh, Manish (2023-08-08). "Sachin Bansal sells Navi's microfinancing unit for $178.5 million". TechCrunch. Retrieved 2023-08-10.
- ↑ Yadav, Pooja (2023-11-25). "Ananya Birla's Svatantra Takes Over Sachin Bansal-Backed Chaitanya". Inc42 Media. Retrieved 2023-11-27.
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