Social Issue

Two out of three people in India live in poverty, subsisting on less than $2 a day.

In this context, a large part of the population does not have access to financial services from the traditional banking sector, due to the absence of guarantees, warranties, or proofs of income. In addition to the high risk, transaction costs for small loans in rural areas also create obstacles for banks.

Microfinance has been key to generating opportunities in Indian households, especially for low-income women, but few entities have the mission of serving the most marginalised areas.

Our Response

Satya MicroCapital Limited is a Non-Banking Finance Company – Microfinance Institution (NBFC – MFI) that started operations in 2017. Its mission is to provide loans to people at the base of the social pyramid in order to support activities that can generate income for these people.

Satya has been a pioneer in adopting the use of technology, lowering operational costs to serve communities living in rural areas. It provides loans, mainly to women’s groups, in rural areas of 14 states, including Assam, Bihar, Chattisgarh, Haryana, Odisha, Punjab, Rajasthan, Utaar Pradesh, Uttarkand, Bengal, Jarkhand, Himachal Pardesh, Jammu, and Kashmir. Several of these states were not well covered by other microfinance entities.

Netri has collaborated with SIMA to co-invest through a participation agreement, in a non-convertible obligation.

Expected Social Impact

This investment of the Netri Foundation, Satya will be able to provide around 1,000 microloans in the country to empower communities in India to generate employment.