Credit Support for Women Entrepreneurs: Proparco, the private sector financing arm of the French Development Agency, has teamed up with microfinance firm SATYA MicroCapital to provide $20 million in assistance aimed at facilitating access to financial resources for women entrepreneurs in rural India. The collaboration was initially disclosed on July 14th during Prime Minister Narendra Modi’s visit to Paris as the guest of honor at France’s Bastille Day celebrations.
As part of the agreement, Proparco has committed to supporting SATYA MicroCapital in the development and implementation of appropriate customer protection policies and the enhancement of environmental and social practices.
Thierry Mathou, Ambassador-designate of France to India, emphasized the significance of this partnership in advancing social inclusion and sustainable development goals, saying, “This partnership between Proparco and SATYA MicroCapital, a pioneering Indian microfinance institution, will provide over 50,000 women across India access to microfinance to enable them to pursue their dreams and realize their projects.”
The comprehensive impact of this project is expected to contribute significantly to Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 5 (Gender Equality and Women Empowerment), and SDG 8 (Decent Work and Economic Growth), according to Proparco.
Diane Jegam, Proparco Regional Director for South Asia, highlighted the project’s alignment with Proparco’s 2023-2027 strategy aimed at promoting greater equality. She noted, “The project will create significant impacts by improving access to financing for 53,730 micro-entrepreneurs operating their own MSMEs.”
Proparco, dedicated to creating sustainable solutions to address environmental and social challenges in regions such as Africa, the Middle East, Asia, and Latin America, collaborates with partners to provide tailored financial solutions to businesses at various stages of development.
Vivek Tiwari, MD, CEO & CIO of SATYA MicroCapital, expressed enthusiasm about the partnership, stating, “Our partnership with Proparco is an absolute motivation for SATYA to continue its mission of driving financial inclusion and empowering women entrepreneurs across India. The level of trust Proparco has reposed in our modus operandi will act as the tapestry of our impending expansion goals.”
SATYA MicroCapital, founded in October 2016, has achieved significant success, with Assets Under Management (AUM) exceeding Rs 5,000 crore and a network of more than 500 branches in approximately 50,000 villages across 25 states. To date, the company has facilitated credit for more than 1.5 million women entrepreneurs from rural and semi-urban areas.
Notably, the gross loan portfolio (GLP) of the microfinance sector in India experienced a 17.9 percent year-on-year (YoY) growth as of March 2023, reaching Rs 3.37 lakh crore, according to a report by credit bureau Crif High Mark, compared to Rs 2.86 lakh crore in March 2022.
