The startup provides micro-lending services to small businesses, self-employed individuals, and rural artisans, focusing on financial inclusion in underserved areas. By offering accessible credit options, it enables economic upliftment and job creation for the underprivileged, enhancing their quality of life.
Funding
$4.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many small business owners, self-employed individuals, and rural artisans in India lack access to formal credit, hindering their ability to grow their businesses and improve their livelihoods. Traditional financial institutions are often hesitant to lend to these individuals due to perceived high risk and lack of collateral. This lack of financial inclusion limits economic opportunities and perpetuates poverty in underserved areas.
Solution
Janakalyan Financial Services provides microloans to underserved urban and rural populations in India, focusing on women entrepreneurs. The company utilizes a Joint Liability Group (JLG) model, where groups of 10-30 individuals guarantee each other's loans, reducing risk and fostering community support. Janakalyan offers loans ranging from ₹10,000 to ₹50,000 with repayment schedules tailored to the borrower's needs. In addition to financial assistance, Janakalyan provides skill development training and promotes financial literacy to empower borrowers and ensure sustainable income generation. The company also acts as a Business Correspondent with other financial institutions to facilitate access to a wider range of financial products.
Target Audience
The primary target audience includes women from low-income households in rural and semi-urban areas of West Bengal, Bihar, Jharkhand, Odisha, Assam and Tripura, who are engaged in micro, small, and medium enterprises and lack access to traditional banking services.
Features
- Microloans ranging from ₹10,000 to ₹50,000
- Joint Liability Group (JLG) lending model for risk mitigation and community support
- Fortnightly repayment frequency with loan tenures of 12 to 24 months
- Interest rates charged @ 26% per Annum on diminishing balance of principal with fortnightly rest
- Loan processing fee of 1.5% with applicable GST
- Skill development training for women entrepreneurs
- Financial literacy initiatives to promote responsible borrowing and financial management
- Business Correspondent services with MAS, IDBI, ESAF BANK and Utkarsh to offer diverse financial products
- Life/accidental insurance coverage to members and spouses