The Challenge

About two thirds of India’s more than 1 billion people live in rural areas, and almost 170 million of them are poor. For more than 21 percent of them, poverty is a chronic condition.  Poverty is deepest among scheduled castes and tribes in the country’s rural areas. Women in general are the most disadvantaged people in Indian society, though their status varies significantly according to their social and ethnic backgrounds. Women are particularly vulnerable to the spread of HIV/AIDS from urban to rural areas. In 2005 an estimated 5.7 million men, women and children in India were living with HIV/AIDS. Most of them are in the 15-49 age group and almost 40 percent of them are women.

The Entrepreneur and the Solution

Equitas is a voluntary, non-government organization dedicated to improving the livelihoods of communities throughout the northern region of Bangladesh, Noakhali district & Dhaka City, India.  Equitas is committed to facilitating development through self-employment, improved health, increased literacy and skills, and ensured self-reliance with a specific focus on women.

A for-profit from the start, Equitas has understood the importance of capital and operational efficiency since day one.  With a business model in mind, the organization has enabled itself to maintain rapid growth. To date, the organization has and plans to continue implementing key operational innovations such as centralizing administrative functions, frontline incentive structures, franchising, etc. The combined senior management team experience in the retail and banking sectors reinforces their growth strategy.

Equitas is led by Vasudevan Vasu, a visionary and entrepreneurial leader with a background in commercial finance.  With almost 20 years experience in the Indian finance sector – specifically launching businesses lines at Chola Finance Ltd, one of India’s most successful finance companies—he has earned the respect of the Equitas team.

Equitas currently serves 10,000 clients and has aggressive growth plans for India. Nearly 100 percent of its clients are women and typically borrow loans of $53 USD. The organization has been focused on the urban Chennai region of India but has plans to expand across Tamil Nadu and beyond throughout the rest of the country.

The X-Interview

P. N. Vasudevan tells Global X: “Poor women usually don't have a place at the table because they don't bring food. Microfinance creates a perceptible shift in the power balance."

The Challenge

While economic growth in India has benefited a growing middle class in India, it has also created great disparities—disparities between urban and rural areas, prosperous and lagging States, and skilled and low-skilled workers. The Northeast states of India have sustained a particularly high rate of poverty during this period of economic growth. With 213 tribal communities, 175 languages, and many non-tribal communities, the region presents a unique cultural, ethnic, linguistic, and religious profile not to be found in any other region in India. Difficult terrain, political volatility, and vast cultural differences have made Northeast India particularly difficult to operate poverty alleviation efforts.

Typically, small and marginal farmers, unable to access financial loans to grow their businesses, have been forced to purchase loans from local agents at outrageously high interest rates. Though formal lending institutions are available, they are not traditionally geared towards small-scale entrepreneurs. This predicament inspired Dhattateya Hosagrahar to establish the Institute of Integrated Resource Management (IIRM) in 2000 to provide the hard-to-reach communities of Northeast India with life-changing access to microfinance. 


The Entrepreneur and the Solution

A native of Karnataka, “Dhatta” became passionate about the Northeast region of India while undertaking a government development project. During this time, Dhatta experienced first hand the difficulties faced by the local poor in accessing essential financial services to improve their lives.

To navigate the region’s communities, IIRM took a traditional development approach of relationship building in each village to successfully launch microfinance. Today, IIRM is focused on providing socio-economic support to rural and urban poor communities, operating exclusively in India’s Northeast region.

IIRM currently serves nearly 8,000 clients with an average loan size of $80 USD.  IIRM clients include farmers, tea plantation workers, and small-scale entrepreneurs.  The organization offers a range of loan products for different client segments. Borrowers use tailored loan programs to expand their businesses and typically redirect extra income towards improved education, healthcare, and housing for their families.

IIRM will be expanding throughout the Northeast over the next few years. Currently a non-governmental organization (NGO), IIRM plans to evolve into a non-banking financial company (NBFC) by 2008 in order to increase its impact and reach.  By 2010, the organization plans to grow to serve 157,000 clients. 


The X-Interview

While in the Philippines, Global X interviewed Dhattateya Hosagrahar and asked him to describe his success metrics. His response: "Our team members, who work day and night for the organization."