Satin Creditcare Secures USD 100 Mn Social Loan to Boost Financial Inclusion The loan, arranged by Standard Chartered Bank, saw participation from six Sri Lankan banks: Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon, and DFCC Bank.
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Microfinance institution Satin Creditcare Network Limited (SCNL) has secured its first syndicated social term loan of USD 100 million via external commercial borrowing under the Reserve Bank of India's automatic route.
The loan, arranged by Standard Chartered Bank, saw participation from six Sri Lankan banks: Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon, and DFCC Bank.
"Securing USD 100 million from new lenders, especially Sri Lankan banks, during challenging times highlights our strong governance, sustainable growth, and financial resilience," said HP Singh, Chairman-cum-Managing Director of SCNL. He added that the deal diversifies the company's funding sources and strengthens its international market presence.
The social financing will be used to expand financial services in India's underserved regions, with a focus on rural women and marginalized communities. The transaction includes a USD 25-million greenshoe option and follows the RBI's automatic route, which allows certain foreign direct and overseas direct investments without prior approval.
The agreement, signed in February, was disbursed on March 12 and is structured for three years and three months, benchmarked to the three-month Term Secured Overnight Financing Rate.
Operating across 29 states and nearly 90,000 villages, Satin Creditcare has expanded beyond microfinance to provide loans for micro, small, and medium enterprises (MSMEs) and affordable housing. Its subsidiaries, Satin Housing Finance and Satin Finserv, support its broader financial inclusion goals.
Additionally, in August 2023, the company launched Satin Technologies Limited to develop AI-driven fintech solutions, further enhancing its digital capabilities.
This landmark transaction underscores Satin Creditcare's commitment to empowering underserved communities while strengthening its financial foundation.
