Arohan Financial Services
Arohan Financial Services Limited is the largest NBFC MFI in eastern India. The company offers microfinance loans to customers from the economically weaker sections of the society. Loan size ranges from Rs.1,100 to Rs.50,000 and interest rates vary from 20.70% to 21.25% p.a. Loan tenure can be in the range of 3 months to 24 months.
Arohan Loan Details
Listed below are the different microfinance loan schemes offered by the MFI:
Saral
These loans are offered to women from low-income families. The recipients of the funds are usually engaged in trading activities and related services.
Loan Details:
| Loan Amount | Rs.10,000 to Rs.50,000 |
| Interest Rate | 20.99% p.a. |
| Loan Tenure | 12 – 24 months |
Bazaar
The loans under this product are provided to shopkeepers who run their establishments on a daily basis. The management of the shops should be done by the borrowers themselves or with family. The establishments should deal with domestic goods like stationeries or groceries.
Loan Details:
| Loan Amount | Rs.15,000 to Rs.50,000 |
| Interest Rate | 21.25% p.a. |
| Loan Tenure | 12 – 24 months |
Sanitation Loan
This loan is provided to borrowers who are looking to construct toilets with the funding. These can be individual or secondary loans.
Loan Details:
| Loan Amount | Rs.15,100 |
| Interest Rate | 20.70% p.a. |
| Loan Tenure | 12 months or 24 months |
Product Loan
This loan can be taken for the purchase of various kinds of cross-sell utility products. These can be individual or secondary loans.
Loan Details:
| Loan Amount | Rs.1,100 to Rs.13,000 |
| Interest Rate | 20.99% p.a. |
| Loan Tenure | 3, 6, 9, 12, or 18 months |
Arohan Financial Services Limited also offers supplementary products such as hospi-cash, solar loan, mobile loan, sanitation loan, group term life insurance, and cycle loan to eligible customers.
MSME Lending Products Offered by Arohan Financial Services
Arohan Financial Services offers a business line of credit that caters to the MSME industry. This is referred to as IntelleCash. Working capital services are offered through this product to POS enabled merchants and online enterprises. The loan amount under this facility can vary between Rs.5 lakh and Rs.1 crore. Enterprises in the cities of Pune, Kolkata, Nagpur, Mumbai, Bengaluru, Lucknow, and Hyderabad can avail an MSME loan.
Listed below are the details of the MSME loan products from Arohan:
Merchant Cash Advance (MCA)
Merchant Cash Advance provides multiple repayment options that are in line with business cycles of small and large businesses. This ensures that the borrower avails maximum benefit from the loan.
Key Features of the Loan:
- Borrowers can avail the maximum value of their card swipes as loan amount for business purposes. This indicates that the loan amount can be up to 2.5 times the average monthly card swipes of the borrower.
- The documentation required for the loan is limited. There is no need to update the financials for loans up to Rs.15 lakh.
- The loan is processed and disbursed quickly. Borrowers just have to scan the required documents for loan processing and provide it to the MFI. There is no need to visit a branch of the lender.
| Loan Amount | Rs.5 lakh to Rs.75 lakh |
| Loan Tenure | 9 months to 18 months |
| Repayment Frequency | Daily or weekly, based on the business and the revenue model |
Eligibility Criteria and Documents Required:
- Business experience of at least 2 years
- Sales should be through EDC/POS machines
- Usage of credit card or debit card swipe machine for at least 1 year
- Average monthly card sales should be Rs.3 lakh per month
Online Seller or E-commerce Program
This loan assists small sellers by providing them with working capital for their business needs. Some of the uses of this loan are as follows:
- Expansion of business
- Running of the daily operations of a business
- Improving financial liquidity
- Purchase of inventory
- Creation of new product line
- Building goodwill and brand value
- Determining the ability to pay off debts and short-term expenses
- Reduction of trade liabilities
Key Features of the Loan:
- Customised credit criteria – The company customises the credit underwriting parameters based on the borrowing business. This implies that loans will be offered based on weekly, bi-monthly, or monthly sales of the business and the projected revenue.
- Hassle-free loan application – The borrower only needs to fill in the details of the business and scan the documents required for loan application. The entire process is quick and easy.
- Loan amount up to 2 times the monthly sales – The amount that can be borrowed can be a large value, i.e., up to twice the monthly sales of the business across marketplaces.
| Loan Amount | Rs.5 lakh to Rs.75 lakh |
| Interest Rate | Based on lenders terms |
Eligibility Criteria and Documents Required:
- Business experience of at least 2 years
- No need to pledge any assets to access credit
- Partnership with the e-commerce entity should have existed for at least 12 months
- Monthly sales of at least Rs.3 lakh
Business Loans
Intellicash from Arohan Microfinance provides unsecured small business loans to businesses that find themselves in credit crisis situations. This loan can be taken for multiple purposes, as listed below:
- Purchase of raw material and finished goods
- Financing of debtors
- Payment to creditors
- Funds to meet the daily operations of the business
- Debt repayment for the short term
- Purchase of old or new machinery
- Renovation of factory/office or any other business premise
Key Features of the Loan:
- No need to submit a collateral or security
- Suitable for businesses that require funds for a short period of time
- Documentation required is minimal
- Funds are disbursed within 3-5 days
- Suitable for businesses with flexible eligibility conditions based on cash profits or annual turnover
- Credit underwriting parameters are customised for the applicant
- Application process is quick and easy
| Loan Amount | Rs.5 lakh to Rs.25 lakh |
| Interest Rate | Based on lenders terms |
Eligibility Criteria and Documents Required:
- Business experience of at least 3 years with proof of existence of business and ITR
- Business should have made profit for the preceding 2 years
- Minimum turnover of Rs.1 crore
- Business should have a good repayment history and acceptable CIBIL score
Application Process for MSME Loans
Step 1 – The borrower should access the online form at the website of Arohan Microfinance and fill it up.
Step 2 – Submit the form online.
Step 3 – Once the representative from the company gets in touch with the borrower, they can submit the scanned documentation.
Documents Required for MSME Loans
- PAN Card
- Business bank statement for a year in PDF format
- Residential and business address proof – Voter’s ID, Passport, Rental Agreement, Utility Bills, Aadhaar Card, License of the Establishment, Residence Ownership Proof
- VAT/GST Certificate of the business
- Financials of 2 years with schedules
Other Initiatives from Arohan Microfinance
Apart from offering the financial products listed above, Arohan Financial Services Limited also undertakes financial literacy and Corporate Social Responsibility (CSR) initiatives.
- The financial literacy programme looks to empower participants by helping them manage their household income efficiently. It also inculcates the ability to manage financial risks and make good financial decisions.
As part of the CSR programme, the MFI arranges for the following:
- Skill development and education of the underprivileged youth
- Women’s welfare and health awareness camps
- Natural disaster relief operations
- Eco sustainability initiatives such as provision of water sanitation units and bio gas energy generation equipment