Annapurna’s main focus is to reach those people who have either isolated or been deprived of the very basic services like that of the financial service among others. So the entire process is mandated towards serving the under-served/unserved by providing affordable financial services at their doorstep. Moreover, it hasn’t limited its scope of serving the clients only to the poor, but over the years it has expanded its horizon of serving to clients like widow, PwDs (Persons with Disabilities) & transgender community. Likewise, it has tailor-made its product basket so as to meet the needs of the above categories of clients.
Annapurna Microfinance follows the credit methodology of Self Help Group lending wherein the loans are disbursed to the members of the group after inter-se-agreement by all the members within the group. The members in a group are selected so as to be in similar economic background and residing in the same locality being friends but not from the same family. In case of the problems in recovery from even one of the members, the system of joint liability ensures recovery of the dues from all the members within the group.
Other than the regular micro-lending activities, Annapurna organizes training programs and workshops for the clients, which acts as a platform to share their experiences. The exposure visits for the members enable them to learn about various activities undertaken by their counterparts in other villages. It helps them understand about different income generating activities they themselves can explore, and improves their confidence as they practically oversee the processes of different economic activities.
Besides the SHG model which constitute a majority of loan portfolio, Annapurna has also started lending on the JLG (Joint Liability Group) model. Annapurna builds its portfolio of JLG clients by forming groups of rural women between the age group of 18-59 years with a maximum of 6 women in a group. Following the concept of joint liability, the responsibility of loan recovery lies on all the group members.