Swadhaar FinServe Private Limited is a Non Banking Financial Company (NBFC) that was set up in 2008 with the objective of providing the urban poor increased access to financial services. Today, Swadhaar is a leading provider of financial services to clients in several major states of India.
In 2014, Swadhaar made the strategic decision to become a “banking correspondent” (BC) for Ratnakar Bank Ltd. (RBL), transferring its loan portfolio to RBL and becoming a service company for the bank. Under the BC model, Swadhaar holds responsibility for sourcing clients, evaluating credit worthiness and monitoring repayments for RBL, leveraging the bank’s balance sheet and infrastructure. It currently offers a group loan product and is also now introducing a wider range of products to serve the Micro-, Small-, and Medium-Enterprise sector.
Accion is a strategic investor in Swadhaar, with a 36 percent stake in the company and two board seats. In addition, Accion provides capacity building support and technical assistance to the company.