Gurgaon-based microfinance company Satin Creditcare Network on Friday said it has received $15 million (around Rs 107 crore) as external commercial borrowings from Development Bank of Austria (OeEB).
According to the company, the investment will support expansion, portfolio growth and its efforts in increasing financial inclusion through operations in 22 states.
The company had a consolidated gross loan portfolio of Rs 7,182 crore at the end of the second quarter of 2019-20.
This will be the third round of external commercial borrowings (ECB) funding by a foreign institution in SCNL.
The first ECB investment in SCNL was by World Business Capital and the second one was by responsAbility Investments. The OeCB investment comes in the wake of the new guidelines of the Reserve Bank of India announced earlier last year.
“The funding from OeEB will help us to strengthen our ongoing credit lending services to a larger section of existing and potential customer base and accelerate our reach across India,” SCNL chairman and managing director H.P. Singh said.
The company has been expanding beyond the top four states — Uttar Pradesh, Bihar, Madhya Pradesh and Punjab — where its share has reduced to 55 per cent from 86 per cent over the last four years.
“Increasing financial inclusion is one of our main strategic goals. We are, therefore, proud to work with SCNL,” said Sabine Gaber, member of the executive board of the Development Bank of Austria.
The company is also present in the housing finance segment and business correspondent services.
Asian Development Bank, Morgan Stanley and Massachusetts Institute of Technology are among the marquee shareholders of the company.