CARE EDGE Assigns AA- Rating to Svatantra Microfin Pvt. Ltd. And Svatantra Micro Housing Finance Corp Ltd.; Outlook Stable

Updated: 25/06/2022

 

Mumbai, Maharashtra, India – Business Wire India  

CARE EDGE - One of India's most reputed global rating agency - upgraded Svatantra Microfin Private Limited (SMPL) and Svatantra Micro Housing Finance Corporation Ltd. (SMHFC) rating to CARE AA- (outlook stable). The rating reflects a robust and profitable growth demonstrated during the testing times by both the companies with financial prudence and strong governance. 
 
SMPL, an NBFC-MFI, has impacted more than 10 million lives since inception in 2012. It currently serves over 229 districts, spread across 19 states in the country through its 720+ branches and has a loan book of close to INR 5500 cr. and currently, employs over 6000 rural youth. SMPL has differentiated themselves by mobility-based operations, cashless disbursements, lowest lending rates and impactful financial services such as cashless mediclaim, thereby ensuring fulfilment of its founder and chairperson, Ms. Ananya Birla’s vision of deepening accessibility of financial services through technology, innovation, and mobility.
 
SMHFC, an NBFC-HFC, is the most unique Housing finance company focused entirely on serving EWS/LIG customers in the informal segment of economy serving the need for Housing purchase, construction, and renovation. The company with a loan book of more than INR 1200 cr has a technology enabled unique branchless model, spread over 9 states, and served more than 35,000 households in EWS/LIG segment. With the lowest average ticket size of INR 7 Lakh, SMHFC works with Private Builders, and State Governments to support their allottees to buy houses and provide funds, including PMAY viability gap funding to borrowers, to complete houses thereby creating inter-generational equity.
 
Both the companies are held 100% by the promoters who remain committed to the creation of impact and profitable growth trajectory of both Svatantra entities. 

About Svatantra Microfin Pvt. Ltd. (SMPL)

SMPL was incorporated in 2012 by Ms. Ananya Birla. It started its operations in Mar-13. SMPL is a systemically important NBFC-MFI. In a short span SMPL has emerged as the most differentiated process and technology-driven microfinance entity, which offers micro-credit at interest rates which are amongst the lowest in the country. SMPL today with a team of 6000+ employees serve over 1.7 million rural customers across 19 states with a loan book of close to INR 5500 cr. The organization provides complete and affordable financial and non-financial solutions to rural women who are entrepreneurs themselves. Svatantra is the first microfinance institution to receive the Non-Banking Financial Company - Microfinance Institution (NBFC-MFI) license from the Reserve Bank of India. With a central aim of financial inclusion, Svatantra is the only MFI with 100% cashless disbursements since inception, often facilitating activation of bank accounts for its clients. s. Industry recognition awarded to the company - Skoch Financial Inclusion and Deepening Award in 2014, Skoch order of merit 2017, and BFSI CTO Summit best technology initiative 2017. 2021 the company was recognised as the Microfinance Organization of the year by Inclusive Finance India awards and has been recognized as the top 30 best workplaces in BFSI by Great Places To Work second time in a row.
 
About Svatantra Micro Housing Finance Corporation Ltd. (SMHFC)

SMHFC was incorporated in 2010 and acquired by Ms. Ananya Birla in 2018. SMHFC, is a systemically important NBFC-HFC. The company is amongst the most differentiated HFCs entity, which completely focuses on catering to EWS/ LIG customers in informal economy catering to their needs of Housing purchase, construction, renovation, and Loan against property. SMHFC today with a team of 600+ employees serve over 35,000 customers across 9 states with a loan book of more than INR 1200 cr. The HFC due to its focus on EWS/ LIG segment has amongst the lowest average ticket size and leveraging technology has a unique branchless model. SMHFC customers are mostly self-employed or employed in informal sectors where there is no formal documentation/ proof of income. The company has adopted a unique credit underwriting methodology to provide these customers loans to buy their first formal homes. All customers of SMHFC have been beneficiaries under various verticals of PMAY being affordable housing in partnerships, beneficiary led construction and credit linked subsidies. SMHFC works with Private builders and State governments to support their allottees to buy houses and provide funds, including PMAY viability gap funding to borrowers, to complete houses thereby creating inter-generational equity. SMHFC was also recognised with GIIRS ‘5 Stars Rating’ for Impact Operations and ‘Platinum Rating’ for Impact Business Model.

For more information about the company please visit www.svatantramicrofin.com and www.svatantramhfc.com.

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