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     CIN NO = U65910RJ1996PTC046219

ARTH Model

ARTH operates itself on the Joint Liability Group model. Under this model, the concerned stakeholders come together on a collective basis and are provided financial assistance for up to eight cycles of lending. The number of people in a group range from 5 to 8.

The JLG designates itself as the ultimate guarantor of each loan provided to individual member of the group. If one member does not repay, no individual in the group is eligible to receive another loan.

The existing groups who have graduated with proven record of timely repayment are considered next dose of financial assistance for Income Generating activities. We lend to five to eight member groups.

Financial Literacy Campaign (FLC)

There were several underlying reasons for the crisis in the microfinance sector; however, over-borrowing by customers and of the problem among our million plus customers across the over-lending by MFIs has been at the base of the problem. This led to defaults on loans and some instances of coercive collection practices by some MFIs. The problem of over indebtedness of customers or over extension of credit by MFIs can only be resolved available to any organization that wants to use it for financial jointly by the customers and us. 

Developing human resources towards good and efficient money keeping habits, through Capacity building, interests ARTH, as a continuation of cordiality with its family members. To develop tools for awareness and financial literacy, in a creative and innovative manner, is a way of imparting. The Financial Literacy Campaign (FLC) is designed and initiated by ARTH, keeping this in mind.

ARTH outreaches to its stakeholders through financial literacy workshops, seminars and counseling to groups and individuals. A particular group continues meetings of all its members on fixed day and fixed time for at-least two weeks to become eligible for Compulsory Group Training (CGT), a three day program consisting of three hour-long sessions designed to educate clients on the processes and procedures of lending and build a culture of credit discipline. Basic orientation of Group working culture/ functioning, record keeping, book keeping, leadership building & conflict resolution is provided in the training program.

The Key areas covered through five training modules, include:
a) Importance of understanding & managing the family’s cash flows
b) Basic numeric skills
c) Budgeting & planning for expenses
d) The importance of saving, ways to save and where to save
e) Pro & cons of different types of loans
f) Dangers of ghost lending and excessive borrowing
g) Credit bureau, its functions, and its impact on the customer