Microfinance firm Satin Creditcare Network has raised INR 36.9 crore/ $5 million from Development Bank of Austria/Oesterreichische Entwicklungsbank AG/OeEB, in debt.
The Gurugram-based company aims to use this loan to consolidate its financial structure and help clients navigate the pandemic. The loan comes in the aftermath of the IL&FS crisis and liquidity crunch, given that non-banking finance companies (NBFCs) have turned extra cautious, making it hard to secure cash from banks or other financial institutions. Satin raised $15 million from the bank in 2020 to extend financial inclusion by expanding its portfolio. As of December 2020, Satin had a headcount of 11,441, across 1,252 branches, serving over 30 lakh clients. It has marked its presence across 23 States and Union Territories in India.
OeEB is a unit of the Export Credit Agency of Austria named Oesterreichische Kontrollbank. It provides financing to companies in developing countries and emerging markets. Satin Creditcare is an NBFC founded in 1998 by Singh, licensed by the Reserve Bank of India. It provides microloans to marginalized women from rural to urban areas, in addition to catering to MSMEs and individual businesses.