Arohan Annual Report FY 20-21

designed to address the needs of both regular, as well as stressed, customers. Hum Hain Naa: In order to capitalise on its ability to raise debt, its monthly repayment model and to offer microfinance loans to customers at attractive rates, Arohan recently launched, a first of its kind, balance transfer product, ‘Hum Hain Naa’, to help customers benefit from better pricing and a monthly repayment model. Arohan’s loan officers are able to quantify to customers the monetary benefits of shifting to Arohan as part of this programme. Sahbhaagi: Post the RBI introduced moratorium in 2020, in order to bring back center discipline amongst customers, Arohan introduced ‘Sahbhaagi’, an industry-firs centre reward programme, which seeks to recognise regular centre attendance and timely repayment with benefits to the Center Members and Centre Coordinators for their efforts in ensuring attendance and repayment of their peer groups. Khaas: Arohan intends to offer a first-of-its kind model in the industry called ‘Khaas’ for used-to- credit customerswhichwill require fewer in-person interactions with Field staff. Through this model, Arohan’s customers are likely to have virtual centre meetings, fully digitised loan renewal processes, cashless repayments and special benefits such as lower interest rates and better rewards. This would be similar to the ‘Privilege Banking’ services in retail banking. RECOVERY VERTICAL In a challenging external environment when the earnings capability and savings of people across India were impacted, in order to serve the customers who were unable to repay their monthly instalments and were hesitant to attend center meetings, Arohan further strengthened its Recovery vertical, which was first put in place post demonetization in 2016. The Recovery Team is committed to meeting customers individually at their residences or places of work. Field Agents of Recovery explain to these customers the need for being engaged with Arohan on an ongoing and timely basis and help clarify their concerns and doubts, in order to re-instate center meeting discipline and timely repayment habits amongst these stressed customers. GEOGRAPHIC REACH Arohan with its well-thought through geographic diversification strategy is present in 17 states across Central, Eastern, North-Eastern and Western parts of the country. As of March 2021 Arohan’s portfolio was distributed 75.55% in non- urban areas in its areas of operation, through 737 branches. The number of districts covered by Arohan has increased from 229 in FY 2019-20 to 231 in FY 2020-21. COLLECTION DURING PANDEMIC Despite challenges posed by COVID-19, lockdown restrictions and natural calamities affecting business operations in Arohan’s operational geographies, the Company was able to maintain highcollectionefficiencyratio(asmentionedbelow) due to its proactive approaches in implementing government reliefs such as loan moratorium, 2% interest subvention benefits and ex-gratia relief. This is further aided by the Company’s focus on customer connect through regular and recovery CSRs, timely product interventions for all customer segments and ensuring wellness of its employee. For the month of March, 2021, Arohan’s collection efficiency ratio (1) was 122.59%. To fulfil the credit requirement of stressed customers, whose livelihoods were impacted in the last financial year, Arohan offered relief products as per RBI relief package/guidelines in Annual Report | 2020-2021 44