Satin Creditcare Network Limited (SCNL), a leading microfinance institution in India, has successfully raised its first syndicated social term loan of $100 million through External Commercial Borrowing (ECB) under the Reserve Bank of India’s (RBI) automatic route.
The funding was exclusively arranged by Standard Chartered Bank, which also participated through its Gift City branch. Additionally, six prominent Sri Lankan banks—Hatton National Bank, National Development Bank, Seylan Bank, Pan Asia Banking Corporation, Commercial Bank of Ceylon, and DFCC Bank—contributed to the loan.
The agreement, signed in February 2025, includes a total commitment of $100 million, with a greenshoe option of $25 million. The first tranche was disbursed on March 12, 2025. Standard Chartered Bank also served as the Social Loan Coordinator, facilitating the establishment of a Social Financing Framework, which carries a Second Party Opinion from Moody’s Ratings. The loan has a tenure of three years and three months, benchmarked to a three-month Term SOFR (Secured Overnight Financing Rate).
This social funding aims to expand financial services, enhance economic participation, and support development in underbanked regions of India. It will also strengthen SCNL’s Asset and Liability Management (ALM) position while reducing its cost of funds.
Commenting on the successful fundraise, Dr. HP Singh, Chairman and Managing Director of SCNL, stated, “This milestone transaction underscores the confidence that global financial institutions have in our governance and sustainable growth. Securing $100 million from new lenders, especially in challenging times, highlights our financial resilience and commitment to financial inclusion. With this funding, we aim to deepen our reach, particularly among rural women and underserved communities, fostering economic progress across India’s most marginalized regions.”
By aligning with internationally recognized social financing principles, SCNL reinforces its commitment to driving long-term social impact and strengthening its global presence.