Anushree Jindal — daughter-in-law of industrialist Sajjan Jindal — has launched a micro finance venture, intially in two States, Karnataka and Maharashtra, with the aim of expanding into banking services in future.
Svamaan Financial Services, a micro lender, which recently received Reserve Bank of India’s approval for starting operations, will offer financial products to unbanked and under-banked sections of population.
Initially, the MFI will focus on Karnataka and Maharashtra with plans to enter the eastern markets of Orissa and Chhattisgarh by 2020. Svamaan aims to reach 100,000 customers by 2021.
On the reason behind entering the sector which is susceptible to external risks, Ms. Jindal told The Hindu , “We have taken a measured decision and we are aware of the market conditions. We have studied and saw ups and downs. But we thought the benefit of getting into the business outweighs the risks and challenges. It was a risk that we were willing to take.”
The business of micro lending came of the age three years back when nine such entities were allowed by the banking regulator to start small finance banks.
When asked if entering the banking sector is a goal, Ms. Jindal said, “We are starting off with the thought process to start small and get the formula right but obviously we do have plans in the future to be as big as possible… and this is something (banking) which is not on the cards but it is something we hope to do one day.”
Kiran Kumar, CEO, Svamaan Financial Services, said: “We are focussed on being a data driven digital lending player from inception, gearing up to cater to the evolving needs of our customers in a digital India.”
The company has a authorised capital of ₹15 crore and paid up capital ₹9.2 crore. The average size of loans will be around ₹20,000 and the target to break even is by 3 years, Mr. Kumar added.
