Bengaluru: Micro finance institution Satya MicroCapital has issued Non-Convertible Debentures (NCDs) worth Rs 40 crore from a responsAbility-managed private debt fund focussing on micro and SME finance, and Microfinance Enhancement Facility S.A.
(MEF).
The fund thus raised will be used by Satya MicroCapital for lending to Indian micro, small and medium enterprises.Having achieved tremendous growth since the previous financial year as well as having built a presence across 11 states in the country, we are at a critical juncture.
The funds raised will help us scale up our operational base, capital base and reach more entrepreneurs by developing innovative credit offerings for micro, small, and medium enterprises across the country, said Vivek Tiwari, managing director, Satya MicroCapital.Satya MicroCapital is an NBFC-MFI that offers collateral-free credit to micro enterprises on strong credit assessment and a centralised approval system.
The company has adopted a limited liability group (LLG) model for extending loans and ensuring repayment.
The companys LLG model distributes the liability among each group member which exists only up to 10 instalments in bi-weekly collections.