Arohan Financial Services LimitedStatus: Approved investment
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Who is our customer
Arohan Financial Services Limited is one of India’s leading Non-Bank Financial Company – Micro Finance Institutions that provides loans and other financial inclusion related products to low-income households with limited or no access to financial services. It is mostly active in economically less developed regions of Eastern and Northern India where it serves around 2 million low-income female borrowers. The Aavishkaar Group - with whom FMO has a long-standing relationship - is the promoter of Arohan.
What is our funding objective?
The capital infused is expected to catalyse the post-covid growth of Arohan. Furthermore, Arohan plans to complement its branch network with increased technology enabled delivery.
Why do we fund this investment?
The investment contributes to FMO's goals in Reduced Inequalities (SDG 10) and Gender Equality (SDG 5).
What is the Environmental and Social categorization rationale?
The project has been categorised as E&S Category C, in accordance with FMO’s Sustainability Policy. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, are covered by FMO in other assessments such as Client Protection Principles (CPPs).
- Website customer/investment
- Financial Institutions
- Publication date
- Deadline for feedback
- Effective date
- Total FMO financing
- INR 910.42 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)