Svatantra Microfin Lowers Interest Rate by 350 Basis Point
Svatantra Microfin Pvt. Ltd., in a prudent move announces a 350 bps reduction in its interest rate. The new interest rate of 19.25% will be effective from 10th April, 2018. This is the lowest in the Microfinance sector in India and move is in line with the central objective of this new age microfinance company to further the cause of financial empowerment and inclusion of rural women in the country and contribute to the larger vision of banking the unbanked.
Concurrently, Svatantra Microfin is now amongst the large NBFC-MFIs with AUM of more than INR. 500 crs, which is also a threshold for becoming a systemically important NBFC-MFI for Reserve Bank of India.
Commenting on company growth, Ms. Ananya Birla, Founder and Chairperson of Svatantra Microfin Pvt. Ltd and Co-Chairperson of ASSOCHAM Microfinance, said, “We are extremely pleased to announce the rate cuts and crossing of INR 500 GLP. This move will allow us a strong footing to deliver better pricing to our clients and scale-up operations further in the country. We have grown at a CAGR of 159% since 2014 and have been offering cashless loan at low interest rates since inception. As a company, it has been our constant endeavour to maximise the benefit to our rural customers and implement initiatives, which have immense scope and extrapolate our vision of economic and social empowerment to deep rural pockets. Likewise, we continue to work towards creating a basket of impactful financial service product such as SME finance and affordable housing to low income households.”
The robust growth has further strengthened company’s commitment towards offering disruptive yet socially viable solutions. In many such moves, company adopted a 100% end-to-end mobility for an entire spectrum of operations in areas such as loan originating system, loan management system, and collections. Also, in partnership with third-party service providers, it has successfully created unique and extremely affordable cashless medi-claim insurance, less than INR 20 per INR 1,000 (annually) of cover for a family of 5 members, including parents (or parents-in-law). More than 55,000 families have enrolled for this product and 1000 families have already availed hospitalisation coverage totalling a claim amount of over INR 1.22 crs.
Svatantra since its commencement has disbursed loans of more than INR 1025 crs with a current portfolio of INR 570 crs. The company achieved break-even in FY17 and since it has been constantly fortifying its network to varied geographies and growing at a phenomenal space. Perennially increasing strong workforce of 1200+ employees fuels company’s exponential growth, Svatantra has 130 branches serving 15,000 villages in 8 states of India, in the meantime ensuring customers transact through formal banking channels.
About Svatantra Microfin Private Limited (Svantantra)
Svatantra, headquartered in Mumbai, is India’s one of the fastest growing MFI with 1200+ members strong workforce having served about 3,00,000 rural women since inception. The MFI has a growing network of 130 branches serving 15,000 villages across 8 states.
Svatantra in collaboration with NPCI (National Payment Corporation of India) has been a pioneer in adopting APBS (Aadhaar Payment Bridge system) for disbursements of loans. Under the leadership of Ms. Ananya Birla, the company has always been on the path of differentiation as a new-age MFI. With a central aim of financial inclusion, Svatantra is the only MFI with 100% cashless disbursements facilitating activation of bank accounts for its clients. Ms. Birla was invited to participate for Champions of Change initiative by the Hon’ble Prime Minister – Shri Narendra Modi. Ms. Birla was also felicitated by Honourable Chief Minister of Maharashtra – Shri. Devendra Fadnavis for contributions in the microfinance sector. She also has in her kitties’ coveted titles of ‘Leading Woman in Microfinance’ by iiGlobal Business Information Pvt. Ltd and Forbes Asia’s Women to Watch 2016. Industry recognition awarded to the company – Skoch Financial Inclusion and Deepening Award in 2014, Skoch order of merit 2017, and BFSI CTO Summit best technology initiative 2017.
For more information about the company please visit www.svatantramicrofin.com