Satin Creditcare Raises 15M Euros to Boost Rural Micro-Credit Access

Satin Creditcare Network Limited (SCNL) announced in a stock exchange filing that it has successfully raised 15 million Euros in External Commercial Borrowing (ECB).

The funding was secured from OeEB – Oesterreichische Entwicklungsbank AG – the Development Bank of Austria. This ECB has a tenure of five years, during which the funds will be strategically utilized to expand SCNL’s business operations and enhance micro-credit access for its customers.

These efforts will be facilitated through the company’s Income Generating Loan (IGL) and WASH Loan programs, both specifically designed to support and empower rural women entrepreneurs. This initiative also aims to foster economic growth and improve living standards in underserved communities.

This recent funding marks the company’s third transaction with OeEB, following successful collaborations in 2019 and 2021, which collectively raised a total of USD 20 million. The continued partnership with OeEB underscores the confidence and trust in SCNL’s mission and operational capabilities.

For the fiscal year ended March 31, 2024, Satin Creditcare reported a significant financial turnaround, with a net profit of ₹436 crore compared to a net profit of ₹5 crore in the previous year. The company’s net interest income saw a substantial increase of 43%, growing from ₹934 crore to ₹1,340 crore in the 2023-24 period. Despite the increased borrowing, the marginal cost of borrowing stood at 10.99%.

SCNL’s strategic utilisation of the ECB funds to enhance its micro-credit offerings demonstrates its commitment to empowering rural communities and driving economic development. The success of the IGL and WASH Loan programs reflects the company’s dedication to supporting women entrepreneurs and improving living conditions in rural areas. This latest funding round is expected to further bolster SCNL’s efforts in achieving these goals, contributing to sustained growth and positive impact in the communities it serves.

Speaking of this transaction, the CMD of Satin Creditcare Network Limited, Mr HP Singh, said, “We would like to share the latest development regarding our external commercial borrowing: the successful raising of 15 million Euros. Given our strong focus on deep penetration across Indian villages, these additional funds will significantly enhance our expansion efforts and broaden microcredit access to underserved communities.”

He further added, “We are determined to level-up and empower women with our outreach programmes and continue to fuel avenues that can make our country self-reliant. With Nagaland being added to our portfolio recently we see new opportunities amongst far Eastern states too.”

On July 11, 2024, the share price of Satin Creditcare Network Ltd opened at ₹215.00, touching the day’s high at ₹221.38, as of 9:38 AM on the NSE.

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