Incofin cvso helps to reach the most far-flung villages in the Indian countryside
The current crisis is being felt by a great many providers of financial providers in India, just as it is in many other sectors. Yet not all of them are affected in the same way. In fact, SAVE Solutions has actually seen its activities increase, conducting 20% more financial transactions than in the same period a year ago. To boost SAVE’s operations and to create a positive impact, Incofin cvso granted it a loan of 1 million EUR.
In India, the coronavirus has made itself felt mainly in the big cities, where the people live close together in large numbers. The countryside was spared more, as a result of which the government has been able to be less stringent with its lockdown measures and the economic impact has been less severe.
The need for financial services close to people’s homes in rural areas has risen substantially during the crisis. Many people have fled the city and temporarily moved back to their families in their home village, out in country areas. At the same time, a large part of the rural population finds it difficult to get into the bank branches of the regular banks which are less spread out in the countryside. Because the government has completely suspended public transport many of those offices remain unreachable. So for many Indians, the very locally oriented, national network of SAVE Solutions is called. SAVE serves nearly 8,000 local service points in 30 Indian provinces, servicing more than 15 million clients.
Crucial in this crisis is the fact that SAVE Solutions does more than just issue small personal loans and lend money to SMEs. SAVE provides a wide range of financial services and the company has seen a rise in more everyday bank transactions in particular, such as transfers, withdrawals, cash deposits and opening new bank accounts.
To help support and expand SAVE’s services further, Incofin cvso granted it a loan of 1 million EUR at the beginning of June.
“We are delighted to partner with SAVE in their endeavour to create a sustainable and well diversified rural financial ecosystem.”, said Aditya Bhandari, Co-Regional Director Asia of Incofin IM.
With this funding from Incofin cvso behind it, SAVE intends to continue using its local, nation-wide network and expand its banking business and affordable lending activities to reach the underserved population outside the cities.
“We are thankful to Incofin for their belief and relentless support in our organization’s growth journey. This debt funding from our investor resonates to be a testimony of their confidence in SAVE’s ability. Given the significant disruption caused by the Covid-19 pandemic, we are committed to create a strong impact on the lives of rural households with our unique and well-diversified business model. This new funding will enable us to empower micro and MSME entrepreneurs.”
Ajeet Kumar Singh, Co-Founder & Managing Director of SAVE Solutions.