The Non-Banking Financial Companies (NBFC’s) and Microfinance Institutions (MFI) in India plays a pivotal role in driving the inclusive growth of the country. Independent researchers suggest that with forty-seven million borrowers and around fifteen billion USD as outstanding loans, India was the leader in 2016 in terms of microfinance. Acting as a complementary to banks, NBFC-MFI’s have proved their viability as a business model in today’s diverse market.
One such influential company which also stands to be one of the largest NBFC of India is SV Creditline Limited (SVCL). Founded in 2010, it has been the pioneer in assisting the economically backward entrepreneurs to align with the mainstream economy. The company 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 customer-centric approach is amply reflected in their product offerings, followed by simplified processes, transparent pricing structure & strong customer service orientation. 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.
The Tenacious Leader
The guiding force who laid the foundation of this eminent company is Rakesh Dubey and is the CEO of SV Creditline. In his professional career spanning over twenty years, he is a seasoned entrepreneur having 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 has completed his master’s in business administration and has done a diploma in rural development management. Rakesh is deeply inspired by Prof. Yunus who is a Nobel laureate and is considered as the father of microfinance revolution in Asia.
His business acumen has led him to be a part of various institutions in key roles in the microfinance industry. Currently, he is the President of MFIN and Board Member of ‘Sa-Dhan’ which is an MFI association recognized as SROs formed by RBI in 2010. Additionally, he is also one of the board members and treasurer of Micro Finance Association of Uttar Pradesh (UPMA).
Key Products – Setting New Benchmarks
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:
- Business Loan
- 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.
- 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.
- Green Loan
SV 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 eco-friendly e-rickshaw to enhance their business.
- 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.
Overcoming Challenges and Achieving Success
The MFI sector has witnessed a strong growth over the past few years due to the evolving rural sector, however, due to ‘demonetization’ the company had to face a sluggish market as the financial flow was very limited. The market had dipped to approx. twenty-five percent which was flourishing at sixty-seventy percent in the pre-demonetization era. This restricted process made a deep impact on the overall business; however, the company has managed to overcome the lean period and is on a steady trajectory for the future.
Future Endeavors
The organization holds a very optimistic view of the future. In order to expand their reach to the rural community living in remote areas, the entity is working to roll out new business strategies to increase the borrowing power of the people, empower women, and impart knowledge among the weaker section of the society.
Source :-The 10 Most Admired Non Banking Financial Companies In 2018
