Satin Creditcare Network Limited– A Pioneer in the BFSI Sector

The banking, insurance, and financial (BFSI) sectors have undergone massive transformations with the adoption of cutting-edge technology and innovative operational procedures. They are embracing out-of-the-box methods to ensure excellent and timely customer service. The leading players of these sectors leave no stone unturned to ensure financial security of the customers and economic development of the nation. One such leader in the BFSI sector is Satin Creditcare.

It was established as a small business loans provider in 1990, and later converted into an NBFC-MFI in 2013. In 2017, Satin Creditcare incorporated Satin Housing Finance Limited, a wholly owned subsidiary with the aim of providing financing in the affordable housing segment and leveraging its rural outreach.

The company provides collateral-free, micro-credit facilities to economically active women in both rural and semi-urban areas. It also offers loans to individual businesses and MSMEs, along with product financing for the purchase of solar lamps, as well as loans for the development of water connections and sanitation facilities.

With operations spanning 22 states and union territories across India, Satin Creditcare emphasizes on rural and semi-urban areas. It ensures to deliver its services to those regions that usually face low or at best, moderate rates of penetration by other microfinance institutions.

Exceptional Offerings

Satin Creditcare Network Limited (SCNL) offers a variety of services to the clients. Two of its major services include:

Joint Liability Group: The company follows the Joint Liability Group (JLG) model of microfinance for its operations, with clients organized in customized groups and provided with Compulsory Group Training (CGT) by SCNL field staff. This training program covers product details, rules & regulations, and policies & procedures, empowering trainees with the knowledge of how to access financial and social services. Post training, a Group Recognition Test (GRT) is conducted to test the group’s understanding of the SCNL’s microfinance program and identify its members’ genuine interest in sharing voluntary-joint-liability as well as their credit absorption capacity, thus assuring an increased potential of migrating to a better livelihood standard.

MSME Offering: SCNL entered the MSME segment with a focus on small business owners in manufacturing, trading, and services with an annual turnover of less than Rs 200 lakhs. Such customers may not habitually maintain standard books of accounts, or some may not even fall under the turnover bracket warranting financial auditing. The company offers a unique loan against immovable property & the amount ranges from Rs.1-15  lakhs with eligibility measured across various parameters; industry type, business vintage, assessed income, business owner’s knowledge and experience in the field, to name a few.      

Insightful Leadership

Satin Creditcare spearheads towards excellence under the dedicated leadership of Mr. HP Singh, the Chairman, MD, and Promoter. He is a first generation entrepreneur whose passion for social engineering has guided Satin to reach more than 3.5 million Indian families to positively impact their livelihood. Mr. Singh has led the company to become a crusader of innovation in the microfinance industry. He is acknowledged for pioneering the unique concept of daily collection of EMIs to make loan repayments flexible and convenient for millions of unserved families.

Sketching Success Stories

Throughout its celebrated journey of delivering excellent services, the company has achieved many awards and accolades. Mr. H P Singh, CMD, was conferred the ‘Golden Globe Tiger Awards’ at an awards ceremony in Malaysia. He also received the ‘Exemplary Leader’ Award. Mr. Dev Verma, the Chief Operating Officer of the company was presented the ‘Leader of the Year’ Award. The company received the ‘Digital Innovation in Microfinance’ Award in the 4th Eastern India Microfinance Summit.

On September 2018, it won the “Rural Champions of The Year” Award by ET Edge. It won the “Excellence Award” by B2B Info Media on November 2018. Satin won the “SKOCH Award” for digital transformation on December 2018. On January 2019, the company received “C1” grade in Code of Conduct Assessment from ICRA. It was awarded 1^st prize in Customer Service Index by MFIN on July 2019. Furthermore, Satin won “Outstanding Contribution to Water and Sanitation Lending” from Sa-Dhan and Water.org on September 2019.

Towards the Future

Marching ahead, Satin looks forward at the PAT of Rs 260cr FY20-21. It will continue to focus on portfolio quality. The company aims to employ Differentiated processes and controls to be better equipped to handle any exigency. It further focuses towards achieving per state exposure to <20% by 2020, and per district exposure to <1% of AUM.

Moreover, Satin intends to further strengthen its Pan India presence through existing branches and by establishing new branches. It emphasizes to diversify revenue sources by increasing share of cross-sell income and credit scores for individuals and groups. The company’s focus is to ensure that cashless collections reach >50% of total collections by Mar’20.

Additionally, Satin plans to expand operations to new geographies. It also focuses on psychometric analysis to be instrumental in achieving better portfolio quality. The company aims to develop a digital lending app to provide competitive edge in future growth. It also plans to achieve portfolio diversification through subsidiaries to capitalize on distribution outreach.