Arohan Annual Report 2023-2024

Growth through the lens of Sustainability Organic Business Vertical Arohan’s core business revolves around providing microcredit services to individuals representing the bottom half of the socio-economic pyramid, employing a joint liability group model. We extend a spectrum of financial and ancillary services tailored to their needs, with loan amounts ranging from INR 25,000 to INR 1,00,000, calibrated to foster their socio-economic advancement. Inorganic Business Vertical Arohan has been a forerunner in the industry to have a focused Inorganic business model, optimising its non-qualifying space. From offering Term Loan Services of up to INR 25 Cr to partnering for a Sourcing & Collection relationship with smaller microfinance entities, or through Direct Assignment & Securitizations, and even engaging in microfinance through loans specific to the business enterprise segment operating out of specified markets, this vertical allows the Company sustainable market advantage. Digital Lending Arohan offers an innovative Digital Loan Sourcing channel, ArohanPrivilege, a pioneering initiative in the industry, designed specifically for our goldstandard microfinance customers. This platform empowers individuals to seamlessly apply for and receive loan disbursements from the convenience of their homes, with funds deposited into their accounts within minutes of approval. Beyond enhancing service excellence for deserving customers, this advancement enables Arohan’s Customer Service Representatives to redirect their focus towards sourcing ‘New to Credit’ and ‘New to Arohan’ customers, thereby optimizing their bandwidth. Micro Enterprise Loan MSMEs serve as the cornerstone of the Indian economy, representing a staggering 63 million micro-segment enterprises. Acknowledging the immense market potential within this sector, Arohan has established a dedicated department: the Micro Enterprise Loan Programme. This innovative initiative aims to address the vital working capital needs of these enterprises by providing loans ranging from INR 50,000 to 5 lakhs, tailored to suit each customer’s specific business requirements. Annual Report 2023-24 | 14

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