The funding from NMI will contribute towards further branch expansion into underpenetrated regions in the poor, Northern part of India in order to reach more clients. Furthermore, the funding will contribute towards developing more products to enhance the quality of life for the clients, especially in the area of sanitation and health.
Knut Frigaard, Investment Director, NMI AS said: ?We have been impressed by the leadership and growth of Satin. We are enthusiastic about investing in the underpenetrated Northern region of India in order to reach more of the unbanked population in the rural areas. We look forward to developing new, innovative product solutions that will further positively impact the quality of life for the clients, especially in the health and sanitation field.?
Mr. HP Singh, Chairman cum Managing Director, Satin said, ?We are very pleased to welcome NMI as a long term partner to Satin. Satin is the clear market leader in North India and has emerged as one of the strongest national level MFIs in the recent past. With this round of capital infusion, we are well poised to become one of the top 4 MFIs in India in terms of diversification and scale. We are confident that we will be able to expand and provide a range of financial services to the underserved population of the country.?
Satin is structured as a Non-Banking Financial Company and was founded in 1990 by its current Managing Director, Mr. H.P. Singh, with the aim of providing small-scale, ?doorstep? credit and savings services to shopkeepers and petty traders in Delhi?s market places. In 2008, the Company made the strategic decision to diversify its client base and launched Joint Liability Group (JLG) operations.
As at 2014, the Company had more than 550,000 borrowers and a Gross Loan Portfolio of more than USD 120 million. Satin is focused on the highly underpenetrated and populous northern states of India. The vision of Satin is ?to provide easy doorstep service to its low-income customers who lack access to funds from other financial institutions at affordable rates within the least possible time.?
The Norwegian Microfinance Initiative (NMI) is an innovative strategic partnership between the Norwegian public and private sectors that will invest in microfinance institutions (MFIs) in developing countries and provide professional assistance and technical support for these institutions. The mission of NMI is to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs.