Valar Aditi Social Finance Private Limited (Valar Aditi) has four branches in Tamil Nadu and Puducherry in Southern India. By end of 2018 there were 8,650 borrowers and active loans to the tune of just under 130 million rupees (INR) - or 1,8 million USD.
Building trust raises credit
First time borrowers can get a loan of 20,000 INR (280 USD) to be paid back in 12 monthly instalments. After successfully paying back the first loan, a borrower can add 5,000 (70 USD) INR to the amount she can borrow until she reaches the maximum amount of 40,000 INR (560 USD) by the fourth loan (and beyond).
The Aranthangi branch is the second best performing branch in 2018 - and it is run almost exclusively by women. The branch manager, Anandhi, believes that the good performance owes to the fact that all loan officers on the ground are women.
"The women borrowers are more comfortable speaking to another woman. So us being an all female team, makes a difference," she says.
At the end of 2018 there were 156 Joint Liability Groups in the branch and 1,754 active borrowers. BESTSELLER FOUNDATION visited Mangudi Village, Ethanivayal Village and Amarauthi Nagar in October 2018 and below you can meet some of the women who have used the access to credit to start businesses and improve their lives.