Product Innovation – Loans for WASH and Home improvement – Bargach Finance Private Limited
Empowering Rural Homes: Access to Water, Sanitation, and Livable Spaces
Problem
- Limited access to water sources, requiring families to manually carry water from wells or tubewells.
- Lack of adequate sanitation facilities, especially for girls, forcing them to go outside for sanitation needs, often at inconvenient times.
- Incomplete construction of homes due to financial constraints, leaving homes unlivable or partially constructed.
- Reduced family income and employment opportunities due to health issues caused by poor living standards.
- Compromised safety and security for girls who must leave home at odd hours to access sanitation facilities.
Solution
- Offer loans for installing water access points at home to reduce manual water collection.
- Provide financing for building household sanitation facilities, enhancing privacy and safety for women and girls.
- Enable families to complete home construction, making homes fully livable.
- Support health improvements through loans for better living conditions, reducing health-related income loss.
- Focus on group-based loans for women, fostering community support and gender equality.
Outcomes
- Improved access to clean water at home, reducing the need for manual water collection.
- Enhanced sanitation facilities, leading to better safety, privacy, and hygiene for families, especially for women and girls.
- Increased number of completed and livable homes, resulting in better living conditions.
- Improved family health and income stability due to better living standards and reduced health issues.
- Strengthened community support and empowerment for women through accessible group-based financial services.
Challenges
- Difficulty in finding trained staff initially, requiring promoters to conduct training themselves.
- Convincing lending partners to support the cause was challenging until the business proved sustainable.
- Securing local community support was essential for launching and maintaining the initiative.
- Establishing trust and awareness among target customers in semi-urban and rural areas took time.
- Managing operations across multiple states with limited resources and infrastructure posed logistical challenges.
SKOCH Award Nominee
Category: Corporate Excellence
Sub-Category: Operations
Project: Product Innovation – Loans for WASH and Home improvement
Start Date: 8-27-2019
Organisation: Bargach Finance Private Limited
Respondent: Rahul Johri
https://bargachfinance.com/
Level: CXL-2
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Case Study
Empowering Rural Homes: Access to Water, Sanitation, and Livable Spaces
Problems
Rural and semi-urban families face limited access to water, sanitation, and livable housing. Many rely on manual water collection, and lack of sanitation facilities compromises safety, especially for women and girls. Incomplete homes and poor living standards also lead to health issues, reducing income stability.
Solutions
Bargach Finance provides tailored loans for water, sanitation, and home improvements, allowing families to install water points, build sanitation facilities, and complete housing. These loans, offered through women-led groups, support community development and contribute to health and gender equality goals.
Outcomes
This initiative has improved water access, sanitation, and housing conditions, enhancing family health and income stability. Women-led loan groups have strengthened community support, empowering women and advancing social well-being.
Challenges
Early challenges included finding trained staff, requiring promoters to train new hires. Convincing lenders took time until the business proved sustainable. Building local trust and managing multi-state operations presented additional logistical challenges as the project grew.
Innovation
The innovation in this project lies in offering specialized loans dedicated solely to water and sanitation improvements, separating them from income-generating loans. This targeted approach ensures sustainable support for essential services while allowing the enterprise to manage cash flow effectively.
Opportunities
The company’s rapid growth, with AUM increasing from Rs 100 crore to Rs 168 crore, highlights the potential for scaling and replicating its business model. Standardized training and processes open opportunities for further expansion into new regions and markets.
For more information, please contact:
Rahul Johri at rahul.johri@vectorfinance.in