Pahal, Microfinance Institution


PAHAL | Microfinance Institution

Pahal is a Microfinance Institution (MFI) that provides loans to low-income households with a strong outreach to women and farmers. Launched in 2011, it is currently present in 7 states of central India with a network of 201 branches and high penetration potential. In 10 years, it has supported more than 800,000 households in marginalised communities.

Pahal has become one of the fastest growing MFIs, scaling efficiently in a short period of time due to its strong technological focus. Transforming finance in underserved markets, Pahal aims to reach 2 million clients by 2025.

Pahal’s environmental strategy has been enhanced by the launch of two products that promote sustainability among female groups: solar-lights and clean water & sanitation financing. Internal actions have been focused on increasing digitalization to reduce paper waste and promoting recycling.

In the coming years, Pahal should be aiming to develop a formal environmental policy and performance system, including specific goals and KPIs to monitor its environmental impact.

Country: India

Investment: EUR 6 million

Investment type: Equity

Technical assistance: Pending confirmation

Date of investment: Jan-22

Map Pahal, Microfinance Institution

Huruma: Transforming Lives

Huruma’s investment in Pahal aims to transform the lives of smallholder farmers through the following theory of change:

Input: EUR 6 MM focused on agricultural financing.

Output: Increase its agri-portfolio x4 and its outreach to active farmers by x3.

Outcome: Increase >228,000 farmers’ crop yields and >186,000 families’ rural income*.

(*) Metrics calculated on the basis of the study estimates “Understanding Impact Performance: Agriculture Investments” (GIIN, 2020)
Pahal, Microfinance Institution