1.Visionary Leadership

• Founded under the guidance of Shri. Aloysius P Fernandez, Padmashree Awardee (2000), and celebrated as the “Father of the SHG Movement in India.”
• A pro bono leadership model, with chairperson and directors contributing their services without remuneration.

2.Pioneering Origins

• Rooted in the SHG-Bank Linkage Programme initiated by RBI-NABARD in 1992.
• Established in 1995 as one of the first institutions dedicated to providing credit services to SHGs in remote areas underserved by banks.

3.Effective Partnership Model

• Collaborates with SHGs, NGOs, and Community Managed Resource Centres (Federations of SHGs).
• Incentives of 0.25% to 5% offered to SHGs for prompt repayments.

4.Hybrid Model for Client Engagement

• Combines digital platforms for sourcing and collections with personal client relationships.
• Enhances collection efficiency while avoiding harassment of clients.

5.Unique and Flexible Loan Products

Tailored products for varied needs of the informal sector, such as:

• WASH Loans (for drinking water and sanitation).
• Tribal Loans,
• Tatkal Loans (emergency),
• TIREN Loans (income generation),

Loans vary by size, tenure, and interest rate, ensuring inclusivity.

Diversity in Interest rates: SRFS manages Different interest rates:

• Interest rate is 22% on SRFS General Purpose Loans; of this 2% is given as incentive/commission to SHGs, NGOs and CMRCs who are partners and monitor repayment.
• Interest rate is 20% on WASH loans
• Interest rate is 18%- 22% on TIREN loans; as these do not involve partners, no incentive is paid.
• Interest rate of 16% on loans to Farmer Producer companies
• Interest rate is 9% on loans to Tribal; but in this case SRFS receives grants.

Interest is calculated on Reducing Balance Method

However, in every case the Net Interest Margin (NIM) does not go above 10%. This is a policy decision and is strictly observed.

SRFS model has Space for flexibility:

Repayment flexibility: Loan repayment terms at SRFS are tailored to match the cash flows of the financed activities. General Purpose Loans provide a standard 24-month repayment period, while TIREN Loans offer greater flexibility. Clients can choose repayment schedules based on their needs, including monthly (interest only), quarterly (capital and interest), or half-yearly (capital and interest) installments.

6.Client-Centric Financial Policies

• Maintains a Net Interest Margin (NIM) below 10%.
• No penalties for prepayment or delays.
• Doorstep services and multiple repayment options, including cash, PDCs, NACH, counterfoil, and UPI.

7.Women’s Empowerment and Capacity Building

• Provides institutional capacity building, financial literacy, digital literacy, and gender awareness training to SHGs.

8.Focus on Water, Sanitation, and Hygiene (WASH)

• Financed initiatives to achieve Open Defecation Free (ODF) villages since 2011, contributing to Swachh Bharat.
• WASH loans constitute 8% of the ₹306 Cr portfolio as of September 2024.

9.Partnerships with Global Institutions

• Collaborates with the National Bureau of Economic Research (USA) and Harvard University for client-supportive and climate-smart strategies.

10.Sector Leadership in FPO Financing

• First MFI to offer financial assistance to Farmer Producer Organizations (FPOs) at 10% interest in 2018-19, setting an industry benchmark.

11.Corporate Social Responsibility (CSR)

• Supports potable drinking water systems, cancer treatment and awareness, skill upgradation, organic farming, and sustainable impact initiatives for Karnataka Milk Federation (Nandini) groups and visually impaired individuals.

12.Insurance with Integrity

• Does not levy commissions on life and health insurance provided to clients.

13.Transparency and Credibility

• Renowned for its commitment to transparent dealings and steadfast customer delight, ensuring a strong reputation in the financial sector.

14.Award-Winning Impact

• Recognized with several national awards for its pioneering work in financial inclusion and social impact.