No Women should feel vulnerable for want of Credit
No Women should feel vulnerable for want of Credit. No Women should feel vulnerable for want of Credit.
ABOUT US
Sarvodaya Nano Finance Limted (SNFL) was promoted by Association for Sarva Seva Farms (ASSEFA), which is an organization that works based on Gandhian principles. Activity groups were formed by ASSEFA to build savings amongst the rural poor in late 1980’s. ASSEFA was the pioneer in forming women Self Help Groups (SHG) in Tamil Nadu. Savings pool of SHGs was used to fund credit needs of its members. To meet growing demand of members, external credit was necessitated; which led to formation of SNFL. It was incorporated in the year 2003, under the Companies act 1956. SNFL is a unique NBFC set up exclusively to cater to credit needs of women, in rural and semi rural areas, by interfacing through their federations called Sarvodaya Mutual Benefit Trusts (SMBTs). SMBTs are independent, profit making and taxpaying entities, which together own around 74% of SNFL.
Facilitate easy credit to neglected and marginalized sections of the society and encourage rural women entrepreneurship.
HOW WE WORK
SHGs are members of SMBT. Sarvodaya Mutual Benefit Trusts pools the contribution received from individual SHGs and then transfer these resources to SNFL as equity. Apart from this, the excess funds and income generated by SMBTs is also invested as share capital in SNFL. Using this share capital, SNFL raised external loans from mainstream financial institutions for on-lending. SNFL lends to individuals directly, since 2012. Company has a Management Collection Agreement with each SMBT for identification of borrower, KYC verification, processing of loans and its collection.
WHERE WE ARE
We operate at present in Tamil Nadu and Puducherry, with 88 Branches and close to 300,000 registered members. We have a Share capital of INR 260 millions and Annual disbursement in the financial year 2018 – 19 was INR 2,250 millions
WHERE WE WANT TO GO
We aspire to emerge as a one-stop shop for all financial services, using local presence of our representatives and community relationships to fill the gaps left by mainstream banks in rural/semi-rural markets. Small Finance Bank (SFB) seems to be the next right step for us, given our customer base and human resources. SFB entails a capital of INR 2 billion, out of this 40% has to be promoter contribution; we are looking forward to mobilize the rest of the 60% required for SFB. A Unique organization as ours deserves to be the go to place, for credit for rural womenfolk, with support from all stakeholders.
