Sectors that Offer Opportunities for Transformation

A journey that unleashes the potential to change lives and fortunes.

Microfinance lending has played a significant role in deepening financial inclusion in India. Microfinance lending, as a business model, has existed in India for many decades. However, it has shown robust growth and the overall microfinance industry is expected to see strong growth on back of the government’s continued focus on strengthening the rural financial ecosystem, strong credit demand, and higher ticket sized loans disbursed by microfinance lenders.

At Northern Arc, we offer microfinance loans to under-served individuals, either directly through our dedicated rural finance partner subsidiary, Pragati, or in collaboration with our Retail Lending Partners and Originator Partners. As of September 30, 2023, we had 67 Originator Partners operating in this sector out of which eight were also Retail Lending Partners. Our primary focus in microfinance is the joint liability group (“JLG”) lending format, wherein borrowers form groups and share responsibility for each other’s loan repayments in case of default, providing social collateral.