New Delhi: Satya MicroCapital, the fastest growing Indian micro-finance institutions, has issued Non-Convertible Debentures (NCDs) worth Rs. 40 crore from Microfinance Enhancement Facility S.A. (MEF).
“The funds raised will help us scale up our operational base, capital base and reach more entrepreneurs by developing innovative credit offerings for micro, small, and medium enterprises across the country,” said MD & CEO, Satya MicroCapital, Vivek Tiwari.
Satya MicroCapital Limited is an NBFC-MFI that offers collateral-free credit to micro enterprises on the basis of strong credit assessment and a centralized approval system.
The company has adopted a unique Limited Liability Group (LLG) Model for extending loans and ensuring repayment. The company’s LLG model distributes the liability among each group member which exists only up to 10 installments in bi-weekly collections.
Through the model, the company aims to add a social touch to lending by integrating modern technology into the Micro Finance industry. Satya MicroCapital Limited primarily caters to women who own businesses or are looking for business expansion.
The group lending model allows groups of borrowers to share the liability and responsibility to repay loans, while helping them build a strong credit profile in order to avail finance from traditional financial institutions.
[source_without_link]ANI[/source_without_link]