Satin Creditcare Network Limited: Unique in its Field

This case study examines how Satin Creditcare (Satin) integrates a strategic approach to overcoming operational challenges in the urban space.The paper states that:

• Satin, a non-banking finance company (NBFC), operates very differently from the typical MFI;
• Satin began with individual lending businesses without first working through group-based activities;
• Its unique features include daily finance schemes, a self-sustaining model and a highly professional management.

The paper examines:

• The first few years of Satin's operations;
• Satin's legal structure, various areas of operations and credit rating.

The paper finds that Satin:

• Always had a for-profit motive;
• Stuck to its competency in originating and servicing loans to traders and small businessmen in Delhi and neighboring areas;
• Is not involved in supporting activities such as business training, consulting, or marketing;
• Has developed its business, with high profile investors, high growth, and continued provision of better financial services to low-income individuals;
• Has filled in a gap in the credit market by fulfilling the needs of people who would have otherwise only been served by informal moneylenders.

The paper concludes that:

• In the future, it could be challenging for Satin to enter a new market with its relatively high interest rate and staunch joining requirements, especially in areas where microfinance exists.
• In order to maintain its success, Satin must formulate policies and more innovative products and services accordingly.