Microfinance Leader Satin Creditcare Secures $100 Million Social Loan to Expand Financial Inclusion

Satin Creditcare Network Limited has secured a $100 million social term loan through external commercial borrowing. Standard Chartered Bank arranged the deal and contributed funding through its SCB Gift City branch.

Six banks from Sri Lanka joined the lending group: Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon, and DFCC Bank.

The Chairman and Managing Director of Satin Creditcare HP Singh said, "This funding from new lenders, especially Sri Lankan banks during tough times, shows the strength of our business model and financial health." He also added, "It helps us tap different funding sources and build our name in global markets."

The company will use the money to bring financial services to underserved areas of India, focusing on women in rural communities. The loan package includes a $25 million greenshoe option. The deal was inked in February, and money was transferred on March 12. The loan runs for three years and three months, and rates are tied to the three-month Term Secured Overnight Financing Rate.

Satin operates in 29 states and roughly 90,000 villages. In addition to its original microloans, the company now offers small business loans and affordable housing through its units Satin Housing Finance and Satin Finserv.

The firm launched Satin Technologies last August to build new tech tools for rural lending. The loan came through the RBI's automatic route, which lets certain foreign investments proceed without special approval, making it easier for lenders serving poor communities to raise money.