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     CIN NO = U65910RJ1996PTC046219

Director's Message

It has been a fulfilling journey so far!

It is my proud privilege to present the Annual Report of ARTH for the Financial Year 2013-14. ARTH has continued its efforts and engagements to contribute meaningfully to the community led micro finance sector in the states of Rajasthan and Madhya Pradesh for improved access to financial services and strengthening rural livelihoods.

Since 2007, we have touched the lives of more than 75000 families, both rural and urban, through our financial interventions. As of March 31, 2014, ARTH has 20443 active borrowers and total disbursements worth more than Rs. 3062.12 lakhs for the current financial year.  

We are very proud to say that while we work in Rajasthan and Madhya Pradesh, we are the only MFI working as NBFC operating from Rajasthan, and we own a major share of the outstanding loan portfolio in Rajasthan

Every bank and institution that lends to us verifies our creditworthiness and past track records with other (previous) financial institutions, and, we have been very fortunate, that till date, none of these institutions have denied funds.

These small, income generating loans have had a tremendous impact on the lives of our women borrowers and their families. With a cumulative recovery rate of 99.99%, ARTH is only poised to increase its operations manifold. ARTH has also posted an annual profit of Rs 22.43 lakhs this financial year, after clearing off the taxes. This year, we tied up with Corporation Bank, SBI Bank and IDBI Bank to disburse loans worth 950.00 lakhs to both rural and urban poor across Rajasthan and Madhya Pradesh.

This stellar track record is due to our disciplined methodology and strong group lending model. ARTH distributes small loans for income generating activities, not for consumer consumption. We lend only to women because they tend to be more careful with using loans than men. To be eligible for loans, members must take financial literacy training and pass a test to demonstrate they understand interest rates, loan installments, and repayment schedules.

Well beyond financial products and services, ARTH offers non-financial services to improve the livelihoods and quality of life of clients. We support customer households in health, education, skills training, housing, marketing and a variety of other aspects. We have been training our clients—financial literacy aimed at increasing awareness of over-indebtedness, product features including interest rates and training on relevant features of code of conduct have been the two focus areas for training, thus making a strong case that we are not soulless, profit-maximizing entities as the sector is often made out to be.

The Board of Directors has provided continuous guidance and direction to the Association. In proud continuation of our association with SIDBI, we have Mr. M K Sharma, General Manager, Rajasthan Region, as our Graduate Nominee Director, on board. We are also very happy to have Mr A K Bhargava, Retd. General Manager, SIDBI, as one of our Independent Director. We welcome both of them on the Board and look forward to their inspiring and motivating ideas.

I must express my sincere thanks to each and every member and staff of ARTH who has worked tirelessly to help meet the changing requirements of the Association. I also acknowledge the financial support provided by SIDBI, ICICI Bank, IDBI Bank, Corporation Bank for our various activities.
Managing Director
Pramod K Paliwal