History of Satin
The Generator Story
In 1988, Satin’s promoter Mr. H P Singh was working in Delhi as a chartered accountant and conducting an audit at Sriram Honda, a generator set manufacturer. On one particular day, Mr. Singh observed a panwala (a vendor selling “pan” which is a betel leaf concoction) purchasing a small television set on a rent-to-own scheme in which an individual pays Rs. 10 per day for a given period of time and then eventually takes ownership of the item. After watching more and more people participating in the scheme, Mr. Singh wondered if he might use the same concept to provide generator sets for business use, particularly to those individuals from lower income households who were unable to make large lump sum payments. At that time, Citibank was the only traditional financial institution offering small, unsecured loans to individuals. Mr. Singh believed that the relatively simple generator idea could serve as a sound business proposition targeting the low-income population and had the potential to be sustainable and scalable.
Satin’s objective from its very inception has been to provide affordable financing to low-income individuals or those making up the “bottom of the pyramid” (BOP). Loans are provided for creating new businesses or growing existing ones and to encourage business expansion, greater profitability, and increased employment in local communities. With the addition of the rural microfinance operation Satin has greatly increased its efforts to carry out its mission of alleviating poverty.
Satin’s microfinance operations commenced in the early 1990’s in the underserved areas of East Delhi, which borders India’s poorest and most populous state , Uttar Pradesh. Since then, Satin has established itself as a leading microfinance institution in North India and has expanded beyond the National Capital Region into Haryana, Punjab, Rajasthan, Uttaranchal, Uttar Pradesh, Madhya Pradesh and Biharh.
In 2005, Satin received a loan from the Small Industries Development Bank of India (SIDBI), which served as an inflection point in the company’s growth. Satin has received additional debt and equity capital since then, and the company is now better positioned for further expansion and profitability and to more adequately fulfill the needs of India’s poor population.