Kolkata: 3rd April, 2026 – Arohan Financial Services Limited, a leading NBFC-Microfinance Institution in India, part of the Aavishkaar Group, today announced the implementation of a risk-based pricing (RBP) framework, working off the Credit Scoring model effective immediately. Interest rates across Arohan’s microfinance products will now range between one of the lowest at 19.99 per cent and 24.24 per cent, depending on the borrower’s credit risk profile & repayment behaviour. Arohan follows a risk-based lending approach, which enables customers with sound repayment history to access loans at favourable rates.
Under the updated schedule, customers with stronger credit quality will benefit from interest rates that are among the lowest in the NBFC-MFI sector, in line with the Company’s commitment to fair and transparent lending. Customers demonstrating stronger credit discipline and lower risk characteristics will benefit from more competitive pricing.
Earlier, Arohan’s board had put in place a self-imposed margin cap of 12 per cent over its effective yield, demonstrating its focus on borrower protection and charging appropriate rates.
“A disciplined approach to lending, combined with prudent risk management, has helped Arohan to maintain one of the lowest non-performing asset ratios among NBFC-MFIs. As a result, we are able to access diversified funding at competitive rates and pass on funding cost advantages to customers with stronger credit profiles, while extending credit to underserved communities,” said Manoj Nambiar, Managing Director, Arohan Financial Services. He further said, “I am delighted to announce the special rate of 19.99% to our tried, tested and best-rated repeat borrowers while continuing to expand access to affordable credit. Risk-based pricing allows us to reward good repayment behavior, improve portfolio quality, and ensure long-term sustainability, all while remaining committed to our mission of financial inclusion.”
The pricing revision is aligned with the Master Direction – Regulatory Framework for Microfinance Loans, issued by the Reserve Bank of India in March 2022, which deregulated pricing for microfinance loans to ensure that the interest rates charged to customers are fair, transparent and competitive.
Arohan was the first-in-the-sector to introduce a risk-based pricing model in 2022-23. Back in March 2022, the Company implemented a Board approved pricing policy for microfinance loans, covering a comprehensive interest rate model for arriving at the rate of interest. The model delineates various components of the interest rate such as cost of funds, operating expense, credit risk premium and margin, in terms of the range of spread of each component for a given category of borrowers and all other charges applicable to the microfinance loans.
Arohan Financial Services will continue to engage closely with customers to ensure clear communication and smooth implementation of the new pricing framework.
