Operations Philosophy

"Prosperity Everywhere" or "Samriddhi Sarvatra"

The basic philosophy of Arth is to promote financial development with sustainable business scale thus, spreading prosperity by impacting number of lives. We, at Arth, target number of lives or households we have impacted instead of scaling the portfolio volume. Efficient operational processes and innovative management systems have been designed to allow rapid growth while maintaining portfolio and service quality. Arth believes that Micro finance could radically increase outreach by :

  • 1. Using best practices from business to scale fast
  • 2. Using technology to automate core business thereby streamlining operations and reducing transaction costs

At Arth, we aim to extend financial services to the poor at their settlements to eliminate their cost of travel to the mainstream banks and improves repayment rate.


The operational philosophy of Arth Model orbits on:


focus
GROUP METHODOLOGY-JOINT LIABILITY GROUP

Arth lends to five to eight member groups of women and designates the group as the ultimate guarantor of each of its member. If one member does not repay, no member of the group graduates for next level of loan. The lending of ARTH and ARTH YES JLG to individuals, but the liability is joint, as a result of which chances of incurring Bad debts is wiped off.

GROUP METHODOLOGY-SELF HELP GROUP

Arth is organizing women into groups of 8-20 members configuring a Self Help Group, wherein the under agreement with IDBI Bank to act as Business Correspondent to provide/ extend financial services to these groups.

SOCIAL COLLATERALS & COLLECTIVE RESPONSIBILITY

Borrowers are organized into groups on voluntarily and social grounds thereby resulting in repayment rates of over 99%. Voluntary group formation also taps into local knowledge about individuals reliability.

PROGRESSIVE LENDING

Prospect of getting higher loan in the future encourages timely repayment of existing facility.

SPECIALIZED FIELD FORCE

Field staff is generally recruited from local areas. Also preference is given to youth thereby leveraging on the understanding and empathy of the community to provide higher quality of services to the Borrower as well as Arth.

INNOVATIVE TECHNOLOGY

ARTH uses a fully computerized management information system (MIS) to streamline operations down to the village level and for "real-time" portfolio monitoring. We have collaborated with the leading fintech solution provider to enhance productivity of the workforce. Further, at ARTH we are moving forward towards cashless and paperless digitalized operations. We have been in the frontline to pioneer cashless disbursements.

OPERATIONAL STRATEGIES

ARTH Micro Finance has established strong Organizational systems and Procedures for the purpose of achieving its business goals smoothly. The Company is building scale and size in a phased manner.