SAVE Microfinance: 10 Key Things You Must Know

Overview

SAVE Microfinance Private Limited is a prominent Indian non-banking financial company (NBFC) specializing in microfinance services, aiming to empower underserved rural and semi-urban communities, particularly women entrepreneurs. Established as part of the larger SAVE Group, SAVE Microfinance provides small-ticket loans and financial services, facilitating economic inclusion and entrepreneurship among low-income groups. With a growing presence across several Indian states, the company combines responsible lending practices with financial education to improve livelihoods. This article explores key facets of SAVE Microfinance, including its origins, operational model, financial performance, and future prospects, revealing how it plays a vital role in India’s microfinance ecosystem.

1. Founding and Evolution

SAVE Microfinance began its operations in 2017 as a wholly owned subsidiary of SAVE Solutions Private Limited, a Delhi-headquartered entity that has roots dating back to 2010 as a business correspondent for PSU banks. Over time, the firm expanded from providing doorstep banking services to delivering microfinance loans focused on supporting women entrepreneurs and low-income communities. This evolution reflects the Group's commitment to financial inclusion and its strategy to diversify services including MSME loans, housing finance, and business correspondent operations.

2. Business Model and Services Offered

The core business of SAVE Microfinance comprises providing small-ticket loans ranging typically from ₹15,000 to ₹60,000 under joint liability group (JLG) models. These loans empower women who are self-employed or engaged in informal sector activities by improving their access to credit, typically unavailable through traditional banking channels. Besides credit, the company also emphasizes financial literacy, helping borrowers manage finances responsibly and build sustainable livelihoods.

3. Geographic Reach and Market Focus

SAVE Microfinance primarily operates in rural and semi-rural regions across India, with a significant concentration in Bihar and Uttar Pradesh. Its network extends through numerous branches across multiple states, directly addressing the credit needs of economically weaker sections. This geographic focus aligns with areas that have been historically underserved by formal financial institutions and helps the company to tap into a largely untapped microfinance potential.

4. Financial Performance and Asset Growth

The company’s Assets Under Management (AUM) have shown robust growth, reaching over ₹1,100 crore as of mid-2024. This growth is supported by steady equity infusions from parent entities and investors like Maj Invest and Incofin, which have contributed substantial capital to fuel expansion. While profitability has seen fluctuations due to credit costs and operational scaling, SAVE Microfinance maintains a positive trajectory with increasing net profits and a focus on improving operational efficiency.

5. Governance and Leadership

SAVE Microfinance is managed by an experienced leadership team with deep expertise in financial services. The CEO and co-founders bring decades of experience in rural marketing, banking, and microfinance sectors. The governance framework emphasizes robust asset quality management, prudent lending policies, and continuous capital infusions to maintain healthy capitalization and compliance with regulatory norms.

6. Asset Quality and Risk Management

Despite operating in vulnerable economic segments, SAVE Microfinance maintains relatively strong asset quality with Gross Non-Performing Asset (GNPA) levels typically under 3%. The company employs stringent credit underwriting, timely collections—mostly through an extensive network of Customer Service Points (CSPs)—and provisioning policies, enabling it to manage credit risk effectively even amid economic challenges.

7. Support from the SAVE Group Ecosystem

As part of the SAVE Group, SAVE Microfinance benefits from a diversified platform including business correspondent services, MSME lending through its subsidiary SAVE Financial Services, and housing finance. This integrated approach allows the group to offer comprehensive financial solutions and leverage synergies in customer outreach, operations, and capital management, enhancing the stability and reach of its microfinance business.

8. Women-Centric Financial Empowerment

SAVE Microfinance prioritizes women borrowers, recognizing their critical role in household and community development. Through targeted lending products and initiatives backed by organizations like Impact Investment Exchange’s Women’s Livelihood Bond, the company fosters women’s entrepreneurship and financial inclusion. These efforts contribute significantly to social impact by enabling income generation, improved financial literacy, and empowerment.

9. Capital Infusion and Funding Sources

The company’s expansion and operational strength are backed by regular capital infusions from domestic and international impact investors. Notably, in 2024 it raised $3 million via non-convertible debentures from Impact Investment Exchange’s Women’s Livelihood Bond 7 (WLB7), directed toward scaling outreach and enhancing balance sheet resilience. Funding from capital markets and banks ensures diversified resource mobilization supporting sustainable growth.

10. Future Outlook and Challenges

Looking ahead, SAVE Microfinance aims to deepen its penetration in underbanked regions while maintaining asset quality and profitable growth. Challenges include geographic concentration risk, emerging market competition, and managing credit costs amid economic fluctuations. Nonetheless, with its strong equity base, leadership expertise, and commitment to responsible lending, the company is poised to continue its impact on financial inclusion and women’s economic empowerment in India.

Conclusion

SAVE Microfinance stands as a critical player in India’s microfinance sector, driving financial inclusion through focused lending to underserved women entrepreneurs and communities. Its journey from a business correspondent unit to an independent NBFC specializing in microfinance reflects adaptive growth aligned with social impact. With a robust operational model, strong group support, and strategic capital backing, SAVE Microfinance addresses the pressing need for affordable credit access while fostering sustainable livelihoods. As it navigates future challenges, its role will be vital in shaping inclusive economic development across rural India. Will SAVE Microfinance continue to set new benchmarks in responsible microfinance, empowering millions and stimulating grassroots entrepreneurship?