(An Autonomous Apex Institute Established by RBI & Banks)
(An Autonomous Apex Institute Established by RBI & Banks)
Paper Number :WP55/2025
Publication Date :Sept. 22, 2025
Financial inclusion is essential for a balanced economic growth in any country. Various policy interventions were promoted by the government and non-government organizations to support the agenda of financial inclusion. Microfinance models in India are accused of charging high interest rate. In this context, a group of professionals decided to promote not-for-profit and interest free microfinance institutions. Because of the legal limitation, Sahulat organization was promoted under Cooperative Society Act in 2012. In the last 13 years of operation, the organization grew significantly in terms of its physical and financial performance, reflecting sustainable growth. They are currently serving 3.3 lakhs members through 57 interest-free credit cooperative societies in 13 states. This case study documents their model and the performance of this organization. This will help other organizations working in this area in promoting similar low-cost and affordable microfinance services for low-income households.