Satya MicroCapital, an India-based microfinance institution (MFI), recently borrowed the local-currency equivalent of USD 25 million from the Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO) and USD 10 million from Finnfund, a development finance institution controlled by the government of Finland. The funding is intended to boost Satya’s lending to low-income female clients in rural and semi-urban areas, with 20 percent of the total to fund purchases that reduce human impacts on the natural environment.
FMO Investment Officer Aleksandra Gazy commented, “…the funds have been earmarked to fund women and youth financing, thereby promoting gender equality and female empowerment. By empowering aspiring women entrepreneurs with increased credit access and digital literacy trainings, Satya clearly exemplifies the importance of providing both financial and non-financial support to improve the livelihoods of the underbanked across India.”
Satya began operations in 2017 and has since established 490 branches across 22 states in India. The MFI offers a health microinsurance product called HospiCash as well as group and individual loans for purposes such as microbusiness, sanitation and raising livestock. These loans range in size from INR 3,000 (USD 37) to INR 200,000 (USD 2,400) with terms of up to three years. Satya reports serving 1.4 million clients with an outstanding portfolio of INR 47 billion (USD 574 million) as of May 2023.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN Sustainable Development Goals by funding capacity development and by placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of December 2022, FMO reported a committed portfolio of EUR 13.2 billion (USD 14.3 billion).
Established in Finland in 1980, Finnfund is 96-percent owned by the Finnish state. It invests in low- and middle-income countries, with a particular focus on “renewable energy, sustainable forestry, sustainable agriculture and financial institutions.” As of 2022, Finnfund reported a portfolio of EUR 810 million (USD 887 million).
By Renata Samadova, Research Associate
Sources and Additional Resources
Satya homepage
https://satyamicrocapital.com
Finnfund homepage
https://www.finnfund.fi
Finnfund 2022 annual report
https://www.finnfund.fi/wp-content/uploads/2023/05/Finnfund_Annual-Report-2022-1.pdf
FMO homepage
https://www.fmo.nl
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Download a sample at https://www.microcapital.org/products-page/.
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