Satya MicroCapital, which caters to micro women entrepreneurs, saw close to 32 per cent of its total collectable instalments of loans coming through cashless collections in the last three months across all the 14 states where it is operational.
The Reserve Bank of India registered NBFC-MFI — Satya MicroCapital has collected Rs 100 crores worth of cashless collections within two and a half years since its inception. The MFI, which caters to micro women entrepreneurs, saw close to 32 per cent of its total collectable instalments of loans coming through cashless collections in the last three months across all the 14 states where it is operational. The company crossed a portfolio of Rs 650 crore with over 2.85 lakh active clients. The company claimed to become the first MFI to collect Rs 100 Crores through cashless transactions. Bihar accounted for more than 85 per cent of repayment collection through cashless transactions even as it faced challenges including network issues, intermittent authentication server and banking servers’ failures.
The company uses biometric authentication via Aadhaar Enabled Payment Services to transfer the amount directly from the savings account of clients to its account. This cashless transaction process helps “prevention of frauds and enabling improved accessibility of efficient credit to micro-entrepreneurs,” the company said in a statement even as it “avoids loan pipelining and involvement of agents.” Out of Rs 100 crore cashless collections, 18 per cent was collected by the MFI in the first year of its operations followed by 40 per cent and 42 per cent in the second year and first half of 2019 respectively.
The cashless process helps weed out “inefficiencies in the lending sector and to provide unbanked, underserved entrepreneurs in rural areas with access to advanced financial services,” said Vivek Tiwari, MD and CEO, Satya MicroCapital. India’s microfinance industry’s gross loan portfolio was Rs 1,87,386 crore at the end of March, up by 38 per cent year-on-year, according to a report by the Microfinance Institutions Network (MFIN) India published in June this year. The number of microfinance accounts grew by 21.9 per cent. MFIN has 53 NBFC-MFIs members who have disbursed 3.25 crore loans worth Rs 82,928 crore in FY19.