Financial Inclusion To Alleviate Poverty – Annapurna Finance
Boosting Economic and Social Impact through Microfinance
Problem
- Nearly 190 million people in India remain unbanked, lacking access to financial services.
- 50% of the credit-eligible adult population is not served by traditional banking systems.
- Many vulnerable groups, particularly poor women, lack economic opportunities and financial security.
- The traditional banking system has not adequately reached rural, suburban, and tribal areas.
- There is a need to create self-sustainable economic models for communities to enhance their financial security and self-reliance.
Solution
- Gained NBFC-MFI status with the RBI, enabling expanded micro-lending and operational excellence.
- Introduced products like SWASTH and SAMARTH to address social and marginalized needs.
- Expanded to over 1,300 branches and 12,000+ staff, reaching 24 million clients.
- Digitized processes for safety and explored sustainable lending options like rooftop solar.
- Offered need-based financial products and provided training on financial management and digital finance.
Outcomes
- Annapurna associates experienced a 25% increase in per capita income
- 85% of Annapurna clients were involved in household decision-making, compared to 28% of non-clients.
- 41.5% more Annapurna clients opted for financial institutions for savings compared to 35.7% of non-clients.
- Annapurna clients had a Household Dietary Diversity Score of 12.4, compared to 8.4 for non-clients, indicating better nutrition.
- Increased access to financial services and improved financial literacy among Annapurna clients.
SKOCH Award Nominee
Category: Banks
Sub-Category: Leadership – Financial Inclusion
Project: Financial Inclusion To Alleviate Poverty
Start Date: 10-10-2013
Organisation: Annapurna Finance
Respondent: Yash Agarwal
https://annapurnafinance.in/
Level: BFSI – 2
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Case Study
Boosting Economic and Social Impact through Microfinance
Problems
A large portion of India’s population remains unbanked, with many vulnerable groups, especially in rural areas, lacking financial access and opportunities.
Solutions
The organization expanded micro-lending, introduced products for marginalized groups, digitized processes, and provided financial training, reaching millions.
Outcomes
Clients saw increased income, better decision-making power, higher savings rates, and improved nutrition through enhanced financial access and literacy.
Challenges
Connectivity issues, low financial literacy, higher loan default risk, and adapting to digital solutions across a vast network made implementation difficult.
Innovation
Annapurna combines rural outreach with collateral-free loans and community-based risk management, empowering marginalized groups and promoting entrepreneurship.
Opportunities
Annapurna aims to leverage digitization to expand outreach and streamline operations, develop sustainable financial products like EV loans and solar lending, and adapt to changing customer needs by offering individual loans and a hybrid service model that combines digital and physical elements.
Summary
Annapurna’s microfinance project bridges financial gaps for underserved communities through collateral-free loans and financial literacy programs. With a vast network and digital expansion, it empowers marginalized groups, improving income and decision-making.
For more information, please contact:
Yash Agarwal at yash@ampl.net.in
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