Vivek Tiwari: Serving the underserved4 min read . Updated: 13 Jan 2021, 05:13 PM IST
Satya MicroCapital Limited, a leading NBFC serving small entrepreneurs, has contributed immensely towards financial inclusion at the bottom of the pyramid, under the visionary leadership of Mr Vivek Tiwari, MD, CEO and CIO, Satya MicroCapital.
Established in 2016, the Delhi-based RBI registered NBFC-MFI, Satya MicroCapital Limited, has brought significant improvement in the lives of the underserved sections through micro loans for low-income entrepreneurs. With its profound endeavour towards the use of digital technology including paperless transactions, cashless disbursements, geo-tagging of client and staff locations, e-KYC of clients and e-Learning platform for training staff members, among others, Satya MicroCapital has emerged as the pioneer in the microfinance sector. With a hardworking and dedicated team of over 2,000+ employees, it serves low-income and small entrepreneurs by extending micro loans in rural and semi-urban areas.
With its motto of creating livelihood through micro-entrepreneurship, Satya MicroCapital has helped facilitate the financial inclusion of a large number of people across both rural and semi-urban areas of the country under the stewardship of Mr. Vivek Tiwari.
Mr. Tiwari gives credit to digitisation for scaling up of the company’s operations in microfinance segment. He says, “We have been the first company in the digital segment to have started 100 per cent disbursement in the bank account of the customers. We have been the pioneers in starting digital collections in microfinance space, and with our rapidly growing digital footprints we have been successful in scaling up our operations in 22 states across 165 districts from Jammu to Assam in the country. Recently, we have also started our operations in South India in Tamil Nadu and Karnataka."
Further, Satya MicroCapital aims to expand itself to almost 400 districts across the country in the next three years. It has set an ambitious target to be a catalyst for the socio-economic upliftment of 5-million households by the year 2025. By then it aims to reach 50 lakh families and become their preferred financial services provider especially for the people at the bottom of the pyramid. The micro-loans at Satya MicroCapital are mainly targeted to rural areas where the people take loan for purchasing of the cattle or for their self-employment through small-entrepreneurial endeavours.
A gen-next microfinance company, Satya MicroCapital is a completely technology based company. Through Apps, it monitors the entire transactions even in the remote areas efficiently. On an average Satya MicroCapital disburses loans of ₹30,000- ₹35,000 to around 50000 customers every month. The company borrows from almost 55 banks including SIDBI, State Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, among others and uses the money for lending to its customers. Currently, the company’s loan portfolio stands at almost ₹1000 core.
It also disseminates emergency loan to its customers; for example, its customers can borrow up to ₹10,000 as emergency loan. Satya MicroCapital also offers business enhancement loans which the entrepreneurs can avail after one and half year of completion of their businesses. Availing of business enhancement loan increases their loan amount up to ₹60-75 thousand. Even the big entrepreneurs with 2-3 years old businesses in the market can also apply for ₹60-75 thousand loan from Satya MicroCapital. It has adopted a unique Limited Liability Group (LLG) model for extending loans & ensuring repayment. Through this model, the company aims to add a social touch to lending by integrating modern technology in the microfinance industry.
Mr. Tiwari adds, “Our loan officers carry biometric reader and Aadhar enabled payment system (AEPS) that is permitted by the central bank. We offer instalments on weekly, fortnightly, and monthly basis as per the convenience of the customers. If a customer wants to re-pay the loan in small quantum he can opt for weekly and monthly instalments. Our interest rates are also on reducing basis and we don’t go for underwriting the CIBIL score. Hence our products are quite suited and helpful to the small entrepreneurs."
Satya MicroCapital has already settled its strong base in Eastern and Western UP, Bihar Punjab, Madhya Pradesh, Haryana, Rajasthan while it has already started its penetration in Himachal Pradesh with simultaneously strengthening its footprints in Tripura, Tamil Nadu, Karnataka and Pondicherry in South India. In spite of the current COVID-19 pandemic scenario which has thrown a lot of challenges in its way, Satya MicroCapital is moving ahead with a fast pace in line with its mission to serve the entrepreneurs of the underserved sections of the society.
“It will take another 3-4 months’ time for our customers to maintain their cashflow and the best thing we have observed is that even at this time most of them are paying, except the 10 per cent of customers whose cashflows are not so good. So, instead of two instalments they are paying one instalment as they need some more time to manage their cashflow. Still, we are happy even if our customers are paying one instalment in this troublesome time. Helping in creating small businesses for the underprivileged people brings smile on their faces and that’s the biggest satisfaction for us," quips Mr. Tiwari.
As a remarkable social welfare initiative during the pandemic times, the company launched Satya Rasoi at different places across the country and distributed 4 lakh food packets to the migrants. It also launched digital OPDs free of cost and the medical facilities were availed by a lot of its customers. Satya MicroCapital has disseminated 86 per cent loans in rural India, while 14-15 per cent of its total loan portfolio is in semi-urban and urban India. All these loans have been disseminated for creating livelihood opportunities for the customers.
Disclaimer: This is a company press release. No HT Group journalist is involved in the creation of this content.