We serve financial services at the doorstep of low-income households who do not have access to loans from traditional banks due to their inability to furnish adequate collateral. Low income-households demonstrate high ethical behaviour and high moral obligation to repay debt, because of their humble backgrounds and deep-rooted values.
Our customers live in highly community-oriented societies characterised by high interdependence and symmetrical information. This key feature of the communities we serve is the reason behind the success of our Joint Liability Group (JLG) lending model, that allows us to organise borrowers into groups of 10-14 members. Each borrower agrees to undertake joint liability on behalf of the group and social pressures and peer monitoring ensure the continued success of our operating model.
At present, there are in excess of 100 million people in India alone, who can potentially become our customers. If we add the numbers from other Emerging and Frontier markets, the figure crosses 500 million. In the best interests of our customers, we have set in place a dedicated Client Grievance Redressal Mechanism and a Model Code of Conduct for all Employees. We also actively follow the Fair Practices Guidelines as laid down by the Central Bank.