Case Study - ARTH COVID - Charanjit Kaur Bhiwadi, Rajasthan - APRIL 2021 - ARTH COVID Rahat
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APRIL 2021
Case Study
- ARTH
COVID
Rahat
Charanjit Kaur
Bhiwadi, Rajasthan
Prepared for Arthimpact Digital Loans
About Arthimpact Digital
Loans
Arthimpact Digital Loans (ARTH) is a registered Non-
Bank Finance Corporation (NBFC) with the objective
to improve access to microcredit. ARTH provides
access to credit to micro-enterprises who are first
time formal borrowers, thus enabling financial
inclusion & driving large scale impact using
advanced technology.
ARTH is leveraging technology for credit assessment
and risk management thereby offering an alternate
new-age lending model, to address three key impact
objectives:
Micro-entrepreneurship Empowerment
Livelihood Enhancement
Hyper Local Economy Development
About ARTH COVID Rahat
With the COVID-19 distress continuing onto 2021, the
financial state of some of the micro-business
owners remained disbalanced. With the aim to
unburden the distressed micro-businesses,
especially in the ‘rurban’ areas, ARTH extended its
first interest-free credit support- ARTH COVID Rahat.
This would help the business owners with an
emergency credit to fulfill their credit shortfall-
arising out of slow recovery to the lockdown.
COVID RELIEF CASE STUDY / PAGE 2
Charanjit
Through her first experience
of a formal credit support,
Kaur, Bhiwadi she was able to understand
the basic of business and
eventually make profit out of
it. Since she came from a
29-year-old Charanjit Kaur
‘rurban’ (rural and urban)
started her dairy business
area, women were mostly
near Bhiwadi in Rajasthan 3
involved in the domestic
years ago in 2019. She
duties, but a small business
started with a single cattle
had good potential too. Her
and later on this multiplied
financial prudence seemed
in number gradually with the
to grow through the literacy
help of micro-credit
and training sessions that
support. She got associated
she had been receiving
with ARTH early in 2019
along with her first formal
through a joint-liability-
credit.
group that was formed of all
the woman in her
Since then Charanjit had
neighborhood.
been smoothly operating her
dairy business until COVID-
19 hit the world early in
2020.
COVID RELIEF CASE STUDY/ PAGE 3Nature of Business
Charanjit’s business comprised of a small dairy
which she had started post-marriage and was built
in the available land within their home. It started
with 1 cattle and then grew into a bigger setup with
more cattle in it. This provided a range of dairy
products that were sold for generating income, like
milk, buttermilk, clarified butter, curd, and other
dairy products.
Since Agriculture and Dairy are amongst the main
occupations of people in Rajasthan, majority of the
population had ownership of big lands that were
used for these and their allied businesses.
Similarly, Charanjit’s family also owned a big land,
part of which was easily available for the cattle.
Other expenses that were needed to complete the
business setup were arranged through the loan she
had availed.
The business setup helped to generate monthly
earnings of upto INR 20,000 (USD 265), most of
which were utilized for the household expenses of
Charanjit and her family
COVID RELIEF CASE STUDY/ PAGE 4Impact of COVID The impact of the pandemic spread out to all businesses across the globe where business owners went through uncertainties throughout most of the 2020. Charanjit’s dairy suffered the setback too. Sales were going down and it was becoming difficult for her to manage the cattle’s daily needs. Apart from the business, her family’s needs were becoming difficult to manage too. During the first half of 2020, Charanjit was somehow able to manage her expenses related to her micro-business and the household, through the savings that was the only source left at hand. This continued for a few months until the savings got all exhausted and Charanjit was now looking out for alternate sources of income to sustain her family’ 15th April 2019 : Borrows first credit support from ARTH of INR 25000 for expanding her dairy business. April 2020: Tenure for the 1st loan ends. Loan settlement gets delayed since the nation goes through a lockdown and business remains closed. June 2020: Charanjit manages to settle her last few installments of the loan after opting in for moratorium. COVID RELIEF CASE STUDY/ PAGE 5
COVID RELIEF - ARTH
Impact
September 2020 : Charanjit avails a short term loan of
INR 20,000 from ARTH to fill the gap in her business’s
cashflow mismatch owing to the slow recovery of her
business. With gradual improvement of the situation,
Charanjit was hopeful that her business will resume its
pace and she would be now able to generate profit by
investing further in it. .
March 2020: The loan term comes to end but Charanjit
is unable to repay the balance amount owing to the
farmer’s protest and subsequent restrictions
implemented by the state government. The situation
again becomes worrisome for Charanjit since the
business goes into debt again.
April 2021: Through multiple connects with Charanjit
and the channel’s team intervention for understanding
the business performance, ARTH summaries Charanjit’s
case and extends the ARTH COVID Rahat for a speedy
recovery. Charanjit has now received an interest-free
credit of INR 30,000 to keep her source of income
afloat.
With this financial aid, Charanjit has been able to clear
all her dues and stock the essentials required for
operating her micro-business smoothly. We hope that
the situation improves for Charanjit and the many
others whose businesses can be secured with
appropriate financial support by institutions.
COVID RELIEF CASE STUDY/ PAGE 6Lucknow | Gurgaon | Mumbai
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