The entity has started lending last week after receiving an NBFC-MFI license from Reserve Bank of India, Anushree Jindal told ET in a telephonic interview.
This makes Svamaan the second microfinance venture after Ananya Birla promoted Svatantra Microfin where family fortune of large corporate houses have been invested.
“This venture is independent of JSW group but we look to leverage on the expertise and backing of the group,” the new entrepreneur said. Anushree married Sajjan Jindan’s only son Parth in 2016.
“I wanted to do something at the personal level. There’s strong business opportunity in the field of microfinance,” she told ET.
Svamaan was incorporated in November 2017. Anushree and Parth Jindal own 100% of the start-up venture.
The entity plans to do business in Maharashtra and Karnataka initially and expand in eastern markets of Orissa and Chhattisgarh by 2020. It aims to cater to 1 lakh customers by 2022.
“Microfinance model is very stable. We have decided to start off in tried and tested states where micro loan portfolio is doing very well,” Svamaan’s chief executive Kiran Kumar said.
Karnataka and Maharashtra have high microfinance density.
Kumar said that the new entity would look for opportunities to grab business from existing pool of micro loan customers. “There is always scope for new players to give loans to existing borrowers after the end of their loan cycle as the tenure is short in micro loans,” he said.
Svamaan aims to be present across 50 locations in Nanded, Palghar, Thane and Latur in Maharashtra along with Bellary & adjoining districts in Karnataka.
Kumar said the company would have rural focus while urban pockets in the both states had shown higher delinquency after demonetisation.