Svatantra Microfin
TypeMicrofinance Organisation[1]
IndustryFinancial services
FoundedFebruary 17, 2012
FounderAnanya Birla
HeadquartersMumbai, India
Area served
Maharashtra, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Bihar, Odisha, Gujarat, Rajasthan, Jharkhand, West Bengal, Punjab, Haryana, Assam, Tripura, Karnataka
ProductsMicrofinance
AUM₹7,000 crore (in 2023)
Websitehttp://www.svatantramicrofin.com/

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

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

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

  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. 30 June 2017. Retrieved 2018-06-29.
  3. 1 2 Bloomberg (2013-06-24). "Birla heiress lends to poor amid banking licence bid". Mint. Retrieved 2018-06-29.
  4. ↑ "Ananya Birla | 2018 Forbes Asia Forum: The Next Tycoons". www.forbesasianexttycoons.com. Retrieved 2018-06-29.
  5. 1 2 Deepti Chaudhary (29 October 2015). "Ananya Birla: Her father's daughter". Forbes India. Retrieved 2 November 2015.
  6. ↑ Rodrigues, Janice. "This pop star means business". www.khaleejtimes.com. Retrieved 2018-06-29.
  7. ↑ "Interview: Ananya Birla On Why India Needs More Brave Women Entrepreneurs. | CEOWORLD magazine". CEOWORLD magazine. 2017-09-15. Retrieved 2018-06-29.
  8. 1 2 Sharma, Sahib (2017-02-22). "NPCI begins pilot project to digitize transactions in microfinance sector". Mint. Retrieved 2018-06-29.
  9. ↑ Hetavkar, Nikhat (2017-06-30). "Svatantra Microfin reached break even in FY17". Business Standard India. Retrieved 2018-06-29.
  10. 1 2 "Svantantra Making Headway in the Differentiated Banking Space". Moneycontrol. 29 March 2016. Retrieved 2018-06-29.
  11. 1 2 3 "Svatantra Microfin launches cashless solution 'Saathi'". @businessline. Retrieved 2018-06-29.
  12. 1 2 3 "Svatantra plans to have 190 branches". The Economic Times. 2017-06-30. Retrieved 2018-06-29.
  13. ↑ "Svatantra Microfin Lowers Interest Rate by 350 Basis Point". The New Indian Express. Retrieved 2018-06-29.
  14. 1 2 3 Ray, Atmadip (2018-04-09). "Svatantra Microfin lowers lending rate to 19.25%". The Economic Times. Retrieved 2018-05-10.
  15. ↑ Singh, Manish (2023-08-08). "Sachin Bansal sells Navi's microfinancing unit for $178.5 million". TechCrunch. Retrieved 2023-08-10.
  16. ↑ 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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