Group Lending Model : Prospective individual borrowers are required to form a small group of five members and join 2-3 larger groups to form a total of 15-20 people. Through this model, members share the risk and are responsible for each other’s timely payment because if one individual defaults on her loan, the others will be required to assume the repayment. The goal is to encourage members to select high-quality, creditworthy partners to minimize risk.After the borrower’s application has been approved, she must attend a training conducted by Amartha’s field staff during which she’ll gain important knowledge on financial management and business discipline. Only after the training will the borrower’s loan cycle commence.
Supervision and Mentoring : We have a dedicated team of field officers (FOs) who provide consistent guidance and supervision for our borrowers. FOs meet borrowers on a weekly basis to disburse/collect payments, ensure loans are being utilized in accordance to Amartha’s core philosophy , and oversee the development of the borrowers’ businesses. FOs also advise borrowers on how to improve health and financial conditions of their families.
Credit Score Simulator : All borrowers undergo a robust psychometric study that qualitatively analyses their ability to pay. Additionally, further due diligence in the form of data pertaining to a borrower’s personal profile and business plan is collected. This internal review system ensure credit scores both thoroughly and accurately depict a borrower’s ability to pay.
Financial Management Training : After borrower applications have been approved, FOs will host a three-day intensive training course with structured modules and content focusing on financial management and business discipline. Our goal is to equip all prospective borrowers with the right knowledge to effectively manage their finances.
Portfolio Management : Our portfolio of borrowers is diversified into various industries and sectors, categorized by loan objectives, business margins and the financing period. Since inception, all installments have been made on time with a repayment rate of 99.9%.