Microfinance serves as an effective tool for poverty alleviation and economic empowerment by granting access to financial services like credit and insurance. Ahilya Gramin plays a pivotal role in providing these services to the unserved and underserved population, enabling them to initiate or expand small businesses and elevate their incomes.

The organization extends both financial and non-financial services to resource-poor, unbanked, and marginalized individuals in rural and semi-urban areas. These services are tailored to meet the evolving needs of communities engaged in agricultural and small business activities. Employing the group lending model (SHG and JLG), wherein poor women mutually guarantee each other’s loans, the organization ensures a robust support system. Borrowers undergo financial literacy training and must pass a test before accessing loans. Monthly meetings with borrowers follow a highly disciplined approach. The repayment rates on the company’s collateral-free loans exceed 99% due to diligent monitoring and follow-up on loan utilization. Additionally, Ahilya Gramin has systematically introduced various individual need-based products for its clients.

In line with its commitment to serving a broader segment, the company has introduced large-size individual loans to provide financial assistance to the MSME sector. It has also launched individual loans for housing finance, catering to the affordable housing segment.