Inclusive development is one of the critical determinants of national growth. Microfinance sector has helped millions of small households in the remote areas and also gave life to their dreams. It started out as an alternate source of finance to the unserved masses comprising the bottom of the socio-economic pyramid and gradually turned out to be a tool for uplifting their standards and working their way out of the poverty.
Established in 2010, S V Creditline Limited (SVCL) is one of India’s largest and most respected Non-Banking Financial Companies. It is incepted with the vision to uplift “entrepreneurial poor” specifically women through giving them easy access to credit. The objective to promote these entrepreneurs is complemented with relevant financial tools enabling them to re-engineer and uplift their financial status in the long run.
SVCL is registered as a Non-Banking Finance Company (NBFC-MFI) under Reserve Bank of India and is promoted by Vans Pte. Ltd. and SV Corporation Pvt. Ltd. The corporate office is located at Gurugram, Haryana, along with a major presence in the northern and central territories of the country. In the long term, it plans to have a PAN India presence to cement themselves as a prominent player in the industry.
The Three Pillars of SVCL
Rakesh Dubey, CEO of S V Creditline is charting the course for the future of the company. With over two decades of experience, he is a seasoned entrepreneur with a deep background in the microfinance domain along with setting up of MFI’s in the domestic as well as in international locations. Prior to commencing his journey, he has also been the founding team member of CASHPOR and founder of SONATA Finance Pvt Ltd. He served as the President of MFIN for two consecutive years and currently, he is Board Member of MFIN.
With over two decades of experience in microfinance, Durgeshwar Mishra, CFO of S V Creditline, was the part of the initial management team that built CASHPOR Micro Credit (CMC) from scratch to one of the largest MFIs in North India .Mr. Mishra has handled almost all key functions of the company including Microfinance Operations, Internal Audit, Monitoring & Reporting, ICT, Insurance, Administration and HR. He heads Fund Mobilization, Finance & Accounts and Administration departments. He has served as a member of MFIN’s Enforcement Committee.
KK Singh, COO of S V Creditline, has over 20 years of experience in microfinance sector. He was part of senior management team at CASHPOR Micro Credit, with responsibility of HR, Operations & Training. Heading the Business Operation at SVCL, Mr. Singh has charted out a new vision and growth strategy for the company. With his leadership has come a lot of success stories where micro credit assistance not only helped the clients in scaling up their living status but also increased their saving level.
Distinctive Product and Services
The entity has been set up with the vision of building a professionally managed and sustainable microfinance institution. The motive is to assist the under-served households by providing an easy access to credit as well as other financial services to make them economically independent. The business also aims to empower the women to help their family by providing opportunities to earn. Some of the mentionable products are:
1) Business Loan
- a) Group Loan
The company follows a social collateral model wherein microfinance group lending with joint liability allows asset-poor individuals to replace physical collateral by social collateral. This informal secured borrowing works better in rural areas as compared to urban areas as rural social networks are typically denser, which results in higher social collateral. It also encourages rural people to opt for income generation loans so that they can start their own business.
- b) Short-Term Individual Loan
The organization has designed a short-term loan for individuals who are in urgent need of funds. The loan tenure is about three months and the fund is disbursed at very low-interest rates taken from the authorized and unauthorized lenders in the market. The process is kept simple and is provided through an online application with all the details about the individual and the loan.
2) Green Loan
S V Creditline has introduced easy finance for e-rickshaw buyers within quick TAT and with easy documentation. With growing awareness about global warming, e-rickshaw has come up as a viable option in densely populated areas. SVCL was swift enough to gauge the issues of the prospective buyers and they introduced the easy finance model which encouraged people to buy the e-rickshaw to enhance their business.
3) Shelter Loan
Although this constitutes a very small portion, the organization has introduced housing loan for families who want to build their homes or expand their house pertaining to diverse needs.
Customer-based Business Philosophy
The customer-centric approach is amply reflected in their product offerings, followed by simplified processes, transparent pricing structure and strong customer service orientation. The company set-ups are conveniently located and easily accessible for customers, who are also reached out to, by its trained field staff. The products offered by the entity include small credit for income generating activities linked with credit life coverage. The robust management team has the expertise to manage complex operations, identify new markets and formulate business strategies. SVCL Application suite is an innovative web-based application which is designed to perform as lending platform along with analysis, monitoring, accounting, supervision and works towards enabling a paperless environment.
A Look into the Future
Progressing forward with positive approach, the company aims to provide financial assistance for two million households by 2020 across India, to significantly improve their living standards. The company will be dedicated to build a sustainable microfinance model that not only delivers high standards of service and value to customers but is also rewarding to all stakeholders.
SV Creditline will continue to work towards strengthening the scene of financial inclusion in India through financial literacy workshops and Mass awareness Camps. The Company is doing 100% cashless disbursement through NEFT and planning to implement various methods and techniques of cashless collection.