49 | Annual Report | 2024-2025 Beyond query resolution, the platform is leveraged to send personalized reminders, alerts, updates, and notifications, allowing Arohan to proactively engage with customers and keep them informed at every step of their journey. This not only strengthens communication but also reinforces Arohan’s commitment to a frictionless, customerfirst experience. By embracing digital tools like WhatsApp, Arohan continues to build a smart, scalable, and customercentric service model—empowering customers and optimizing operational effectiveness. RATINGS & GRADINGS – REINFORCING OUR COMMITMENT TO EXCELLENCE AND RESPONSIBLE GROWTH The following rating and grading achievements reaffirm Arohan’s continued focus on building a sustainable, scalable, and socially responsible business model, strengthening its position as one of India’s leading microfinance institutions. CARE MFI 1 Grading: Arohan retains the highest-rated MFI 1 grading from CARE Ratings for the eighth consecutive year in its assessment held in FY 24-25. The grading is assigned on an 8-point scale with MFI 1 being the highest, enabling Arohan to retain its position among the choicest MFIs in India. Code of Conduct Assessment (COCA): Arohan retains the highest-rated C1 grading for the eighth consecutive year. The top notch grading has been awarded to Arohan by CARE Advisory Research and Training Limited (CareEdge Advisory). The score of 93% have been earned on indicators concerning Transparency, Client Protection, Governance, Recruitment, Client Education, Feedback & Grievance Redressal, and Data Sharing. Social Rating – ALINUS SPI5: In FY 2025, Arohan received an Alpha Social Rating with a Positive Outlook from M-CRIL, based on an assessment conducted using the ALINUS SPI5 tool methodology—a globally recognised standard for social performance management. With a score of 85% on a 7-point scale, the report cited Arohan’s “strong social commitment, very good systems, and clear evidence of alignment with its social mission and values.” This marks Arohan’s first social rating under the ALINUS SPI5 framework, with the rating valid for two years, reinforcing the company’s dedication to achieving its social impact goals alongside financial growth. QUALITY-FIRST APPROACH TO SAFEGUARD CUSTOMER INTERESTS AND ENSURE OPERATIONAL EXCELLENCE At Arohan, quality is not just a benchmark—it is a commitment to protecting and empowering our customers. Central to this philosophy is a robust framework anchored in the quality trinity of Credit Underwriting, Risk Management, and Internal Audit. These three pillars act as critical safeguards, ensuring that every operational decision and product offering aligns with the highest standards of integrity, transparency, and customer welfare. In an industry marked by dynamic challenges, Arohan’s unwavering focus on rigorous quality controls ensures that business growth does not come at the cost of customer trust or portfolio stability. This structured approach—integrated across diversified products and delivery models—helps maintain the financial health and sustainability of portfolios, ultimately benefiting the very individuals the Company aims to serve. By creating a secure and compliant operating environment, Arohan reinforces its commitment to fair practices, responsible finance, and the long-term success of its customers. CREDIT UNDERWRITING Arohan’s Credit Team is committed to minimizing credit risk while ensuring sound decision-making in loan origination. To achieve this, the team has implemented a comprehensive three-layered Credit Underwriting Process, which includes: 1. Credit Rule Engine Embedded in the Loan Origination System (LOS) Arohan’s Credit Committee serves as the ultimate custodian of credit policies, developed through extensive deliberations with key stakeholders. Policies are guided by RBI Master Directions on Microfinance, SRO guidelines, MFIN guidelines, industry practices, and market-specific portfolio quality. For each product, the Credit Committee determines the credit instruments and benchmarks, which are then published as Credit Circulars. These circulars serve as the primary guidelines for sourcing staff at the field level. The credit rules are embedded directly into the LOS, where system validations ensure faster, unbiased decision-making and seamless process execution.
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