Satya MicroCapital, one of the fastest growing Indian micro-finance institutions, has issued Non-Convertible Debentures (NCDs) worth Rs 40 crore from a responsAbility-managed private debt fund focussing on micro and SME finance, and Microfinance Enhancement Facility S.A. (MEF). The fund thus raised will be used by Satya MicroCapital for on-lending to Indian micro, small and medium enterprises.

Vivek Tiwari – MD & CEO, Satya MicroCapital Limited commented, “Having achieved tremendous growth since the previous financial year as well as having built a presence across 11 states in the country, we are at a critical juncture in our growth trajectory. 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.”

Satya MicroCapital Limited is an NBFC-MFI that offers collateral-free credit to micro enterprises on the basis of strong credit assessment and a centralised 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 instalments 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.

Incepted in October 2016, the company has since registered impressive growth by achieving an Assets under Management (AUM) value of over Rs. 300 crores in less than 2 years, thus emerging as one of the fastest growing MFIs in the country. 

Satya MicroCapital Limited launched its microfinance operations from its Bulandshahar Branch, erstwhile known as Sikandrabad Branch in Uttar Pradesh. The firm has since established 65 branches across 11 states, namely, Assam, Bihar, Chhattisgarh, Haryana, Orissa, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand and West Bengal.