Ujjivan Financial Services started its operations as an NBFC in 2005 with the mission of providing a full range of financial services to the economically active poor who are not adequately served by financial institutions. Its business is primarily based on the joint liability group lending model for providing collateral free, small ticket-size loans to economically active women. It also offers individual loans to Micro & Small Enterprises (MSEs).
The company has adopted an integrated approach to lending, which combines a high customer touch-point typical of microfinance, with the technology infrastructure and related back-end support functions similar to that of a retail bank. Its integrated approach has enabled it to manage increasing business volumes and optimise overall efficiencies. A technology-enabled business model has been its strategic priority, and the back-end of its operations has a fully integrated IT platform.
The company has adopted a decentralized management structure for its operations, comprising four regional offices at Bengaluru, New Delhi, Kolkata and Pune. The company’s two-tiered management hierarchy consists of a national leadership team (NLT) providing overall direction to its business, and four regional leadership teams (RLT) responsible for taking on-ground operational decisions. The company’s NLT and RLT members have significant experience in the banking and financial services industry, and provide depth to its management team. This further provides the company with the advantage of understanding ground realities and local diversity of a particular region, enabling quick decision making and proactive responses to regional market changes.
Business area of the company
The company offers a diverse range of loan products to cater to the specific requirements of its customers. Its products can be classified under two broad categories, namely, group loans and individual loans. Depending upon the end use, these products can be further sub-divided into agricultural, education, home improvement, home purchase and livestock loans. All of its assets under management (AUM) fall under the priority sector lending norms prescribed by the RBI. In addition to loan products, the company also provides non-credit offerings comprising of life insurance products, in partnership with insurance providers such as Bajaj Allianz Life Insurance Company, Kotak Mahindra Old Mutual Life Insurance and HDFC Standard Life Insurance Company.
Major events and milestones
Awards and Accreditations