Microfinance firm Satin Creditcare Network said on Tuesday it has raised $5 million (Rs 36.9 crore) in debt from Development Bank of Austria (Oesterreichische Entwicklungsbank AG or OeEB).
The loan will strengthen its financial structure and help clients navigate the pandemic, the Gurugram-based company said.
OeEB is a unit of Oesterreichische Kontrollbank, the Export Credit Agency of Austria. It provides financing to companies in developing countries and emerging markets.
The loan comes as non-banking finance companies (NBFCs) have turned cautious in recent years following a liquidity crunch since the IL&FS crisis unfolded in 2018, making it difficult to secure cash from banks or other financial institutions.
In 2020, Satin raised $15 million from the bank to expand its portfolio and increase financial inclusion.
At that time, chairman and managing director HP Singh had said his company hadn’t faced any pressure since the liquidity crisis broke out in 2018.
The company has previously secured funding from US-based World Business Capital and Swiss impact investor responsAbility Investments AG.
In 2019, the Reserve Bank of India eased guidelines for companies to raise external commercial borrowings (ECBs) which made it easier for NBFCs and microfinance institutions to raise debt capital from foreign lenders.
As of December 2020, Satin had 1,252 branches and a headcount of 11,441 serving more than 30 lakh clients. It has a presence in 23 states and Union Territories, according to the company.
Founded in 1998 by Singh, Satin is an NBFC licensed by the Reserve Bank of India. It makes microloans to underserved women in rural, semi-urban and urban areas besides catering to individual businesses and MSMEs.