“Poverty is not just a lack of money, it is not having the capability to realize one’s full potential as a human being”- Amartya Sen
In the present economic system of India, Non-Banking Financial Companies are playing a significant role by affording niche services to the customers in the financial service industry. NBFCs now are challenging the banks and financial institutions by offering more personalized services. NBFCs understand their customer profile, credit portfolio and deliver customized services for driving a fast growth.
With quick response and organizational flexibility, Margdarshak Financial Services Ltd a non-banking financial company is providing financial services for livelihood strengthening and economic mainstreaming of poor in the States of Uttar Pradesh, Bihar, Haryana and Himachal Pradesh. Margdarshak’s outreach in rural areas is around 70%. Currently, the company is operating through a network of 115 branches spread across 50 districts.
An Intuitive Leadership with Enriched Experience
With the passion of strengthening the financial services for the customers in India, Rahul J. Mittra, Founder, and CEO of Margdarshak established this organization in the year 2006. He specializes in the fields of rural finance, organizational development and strategy development and operation management.
During the last 10 years, under the leadership of Rahul, the company has expanded its microfinance operations across the northern part of India to reach the unserved and underserved families in the region. Having over 24 years of working experience in rural development at grass root level, his extensive knowledge of livelihood practices and organizational building skills are useful for the organization in developing relevant policies, processes, and mechanisms for comprehensive growth. Rahul also contributes to client interface and brings client feedback to the board and stakeholders. Rahul is supported by the senior management team, comprising primarily of sectoral and technical specialists. The stability of the management team is one of the key strengths of the organization.
Benefits to the Clients through Ingenious Services
The company provides varied services to the clients with the help of their flexible financial products and schemes. Majority of its clients are from the bottom of the pyramid and have no access to formal banking. Therefore, forming the bulk of our clients are women who are involved in agri-allied activities, handicrafts, livestock rearing and petty trading activities. The loan amount ranges from Rs. 15000 to 35000.
Most of the clients are not able to address their housing needs as they are already burdened with necessities such as food and health related expenses. The company has recently started offering home improvement loans ranging from INR 50,000 to INR 75,000 for home improvement, extension and addition.
The company also offers solar and clean energy loans to encourage their members in adopting environmental friendly lifestyle and energy efficient products through appropriate financial services and training. Additionally, the organization also strives to build awareness of environmental protection and climate change among their client members.
Margdarshak undertakes various client education and engagement activities such as eye-check-up camps, drawing and painting competitions which help the organization in strengthening its relationship with their clients. The company is supported by 30 reputed lenders including NABARD and SIDBI, to create awareness among clients and their families on digital financial literacy.
Overcoming the Changing Landscape
As per Government of India’s “Digital India” vision NBFCs needs to ensure a high degree of transparency and make the lending process of customer friendly. Realizing the need of digital transactions, the company is quickly adopting digital lending through e-wallets, mobile-driven point of sale and internet banking. The underlying objective is to lower operational costs, reduce processing time and paperwork. “Company has redefined its strategy in order to enhance its product portfolio (positioning and pricing), processes (internal and customer facing) and end-to-end customer experience”
The company has maintained a steady growth despite going through many challenging phases. With the guidance of its highly competent board and the stability of its senior management team, Margdarshak focuses on providing better services, customized financial products to create more engagement with their clients. The company’s partnership with its lenders and support of long term investors is its core strength and helps it to grow in a sustainable manner and meet its funding requirements in the long run.
Currently, through the usage of digital technology, the company is transforming rapidly to improve the customer interface. Today, the company is educating and encouraging its clients to adopt digital finance in a bigger way.
Dynamic Future of the Company
The organization is heading with a mission of providing a holistic bouquet of financial products and services for the economic mainstream. Also, Margdarshak focuses on promoting technical assistance and business development services to cultivate successful enterprises in the area of operations for strengthening the economy. During the interview, Rahul states “Our ultimate objective is to be a one-stop solution provider of integrated financial services to connect all the financial needs of the customers”
Source :-The 10 Most Admired Non Banking Financial Companies In 2018
Margdarshak: Driving Financial Inclusion for Equitable Growth
