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     CIN NO = U65910RJ1996PTC046219

ARTH Operations: Philosophy

Efficient operational processes and innovative management systems have been designed to allow rapid growth while maintaining portfolio and service quality. ARTH believes that micro-finance could radically increase outreach by -
(1) Pursuing a social cum profit oriented model
(2) Using best practices from business to scale fast
(3) Using technology to automate core business processes, thereby streamlining operations and reducing transaction costs.

The operational philosophy of ARTH has been summarized thus:

Focus on Women:

The focus on women gives many subjective advantages, such as the fact that women are better credit managers than men, leads to better utilization of the loan and indulgence into activities with lower risk factor.

Development services:

The business development activities of ARTH are designed so as to provide Social Development as well, and an overall economic development of the poor, thereby leading to a good market reputation and increasing the goodwill of ARTH.

Customer-centric Products & Door step Banking:

ARTH designs its loan products using participatory techniques to develop the products that are best suited to the poor on their individual need-basis. For instance, working capital loans may be granted with bi-weekly repayments corresponding to the cash flows or emergency loans may be granted to prevent “distress selling”.

Social Collaterals and Collective Responsibility:

Borrowers are organized into groups on voluntary and social grounds, thereby resulting in repayment rates of over 99%. Voluntary group formation also taps into local knowledge about individuals’ reliability and minimizes “underwriting” costs.

Progressive Lending:

The prospect of getting higher loan in the future encourages timely repayment of the existing liability.

Specialized Field Force:

Field staff is generally recruited from the local areas. Also, preference is given to the youth thereby leveraging on the understanding and empathy of the community to provide higher quality services to the borrower as well as to ARTH.

Innovative Technology:

ARTH uses a fully computerized management information system (MIS) to streamline operations down to the village level and for “real-time” portfolio monitoring. Intensive training and ease-of-use enable field staff to operate these technologies, saving the cost of skilled technicians.

Operational Strategies

ARTH Micro Finance has established strong Organizational systems and Procedures for the purpose of achieving its business goals smoothly. The Company is building up both in scale and size in a phased manner.