| 40 Annual Report | 2024-2025 In recognition of the evolving financial journeys of its customers, Arohan introduced Saral Repeat—a high-value offering tailored for repeat borrowers with strong repayment track records. This product allows eligible customers to access higher ticket loans of up to INR 1,00,000, enabling business expansion and sustained financial independence. The Saral product family—which includes Saral New-to-Credit, Saral Use-to-Credit, and Saral Repeat—caters to diverse borrower profiles with loan sizes ranging from INR 25,000 to INR 1,00,000. With repayment tenures typically between 24 to 30 months, the product line emphasizes flexibility and customer-centricity. This evolution of the Saral suite reflects Arohan’s broader commitment to financial inclusion with responsibility, supported by robust digital platforms, data-driven insights, and a long-term view of the customer lifecycle. By enhancing product design and delivery, Arohan continues to drive sustainable impact—empowering underserved communities, strengthening financial resilience, and building lasting relationships. Micro-Enterprise Loan: Micro and small enterprises form the backbone of the Indian economy, driving employment, local trade, and inclusive development. Recognising the critical role they play, Arohan launched its MicroEnterprise Loan (MEL) programme in FY 2023, supported by a dedicated credit team and a tailored underwriting framework designed specifically for this segment. In FY 2025, the mainstreaming of the MEL product line has been instrumental in enhancing operational efficiency, making the product accessible to the entire sourcing team of Arohan. With streamlined processes, data-driven credit assessment, and technology-led delivery, Arohan has significantly improved turnaround times and credit quality across this vertical. More importantly, the MEL programme has opened access to higher-ticket loans—ranging from INR 75,000 to INR 2 Lakhs—for entrepreneurs with demonstrated creditworthiness and strong business potential. By offering financing that aligns with individual business needs, the product empowers micro-entrepreneurs to expand operations, invest in growth, and improve their long-term financial standing. Management Discussion & Analysis In FY 2025, Arohan navigated a challenging external environment to achieve key milestones in its journey toward inclusive growth. Despite headwinds—including an intense summer, prolonged national elections, high employee attrition, KYC-related issues, and market-wide concerns around over-borrowing and overlending—Arohan remained steadfast in its commitment to responsible growth. This resilience was underpinned by our disciplined adherence to prudent lending norms, the strength of our Recovery team, and the effectiveness of our ‘Quality Trio’—Internal Audit, Risk Management, and Credit Underwriting. The mainstreaming of our flagship offerings - ArohanPrivilege and Micro Enterprise Loan - further enhanced both customer access and operational sustainability. These strategic efforts have positioned Arohan strongly in alignment with its Vision Statement and its long-standing mission of financial inclusion. As of March 31, 2025, Arohan closed the fiscal year with an outstanding portfolio of INR 6,003 Cr, serving over 2.1mn borrowers across 1,102 branches in 18 states, supported by a dedicated workforce of 10,252 employees. In a rapidly evolving global landscape, Arohan continues to place the customer at the center, ensuring ease of access to credit, upholding service quality, and embracing scalable opportunities for a more inclusive financial future. INNOVATIVE PRODUCT LINES DRIVING SUSTAINABLE GROWTH Arohan has consistently evolved its product offerings to meet the changing needs of its customers—through strategic digitalization, a deep commitment to enriching customer experience, and a focused approach to extending customer relationships over the long term. Flagship Loan Products Saral Suite of Products: At the core of Arohan’s portfolio lies the Saral suite of products, designed with purpose and precision to support women from low-income communities engaged in trade and services. Anchored in the Joint Liability Group (JLG) model, Saral provides access to credit through small groups of three to five women, fostering mutual accountability and collective economic empowerment.
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