Joint Liability Group (JLG) Model
Valar Aditi Social Finance Private Limited follows the Joint Liability Group (JLG) model as its core service delivery mechanism to extend financial services to underserved women in rural areas.
Under this model, women are organized into small, homogeneous groups of five members who come together voluntarily based on mutual trust and social cohesion. Each member of the group supports and guarantees the loans taken by the others, fostering collective responsibility and financial discipline.
Loan appraisal and approval are carried out based on group recommendation and mutual guarantee, rather than traditional collateral. This approach enables access to credit for women who lack formal banking history while ensuring high repayment performance through peer accountability.
All members undergo Compulsory Group Training (CGT) before loan disbursement, which covers financial literacy, group norms, repayment discipline, and the principles of joint liability. Loans are disbursed directly to individual members, and monthly instalments are collected in person by field staff at the group meeting.
The JLG model adopted by Valar Aditi is inspired by the Grameen Bank methodology, with modifications to suit local socio-economic conditions and regulatory guidelines. The institution currently offers Income Generation Loans (IGL) exclusively to women members under this model, in full compliance with RBI norms and industry codes of conduct.
Through the JLG approach, Valar Aditi promotes financial inclusion, women’s empowerment, and sustainable livelihood development, while strengthening community participation and mutual support systems.
Business Loan Model
Valar Aditi Social Finance Private Limited offers Business Loans to support the growth and sustainability of micro and small enterprises, particularly in underserved and semi-urban markets.
These loans are designed to meet working capital requirements, business expansion needs, and asset acquisition, enabling entrepreneurs to strengthen and scale their income-generating activities. The product is tailored to suit the cash flow patterns of small businesses across trade, services, and manufacturing sectors.
Loan assessment is carried out through a structured appraisal process, taking into account the borrower’s business profile, repayment capacity, and credit history. Depending on eligibility and risk assessment, loans may be extended with or without collateral, in accordance with internal credit policies and regulatory guidelines.
Valar Aditi follows a transparent and responsible lending approach, ensuring that borrowers are fully informed about loan terms, interest rates, tenure, and repayment obligations prior to disbursement. Repayments are structured through regular instalments, with ongoing monitoring and borrower engagement to maintain portfolio quality.
The Business Loan model is implemented in strict adherence to RBI regulations, fair practices code, and ethical lending standards, with a focus on long-term borrower relationships and financial discipline.
Through this model, Valar Aditi aims to promote entrepreneurship, livelihood enhancement, and inclusive economic growth, while providing reliable financial support to small business owners.
Loan Against Property (LAP) Model
Valar Aditi Social Finance Private Limited offers Loan Against Property (LAP) as a secured lending product designed to meet the medium to long-term financial needs of eligible borrowers.
Under this model, loans are extended against the mortgage of residential or commercial property owned by the borrower. The property offered as security provides enhanced credit assurance, enabling access to higher loan amounts and longer repayment tenures compared to unsecured lending products.
The LAP product is primarily intended to support business expansion, working capital requirements, asset creation, and other productive purposes. Loan eligibility, amount, and tenure are determined based on property valuation, repayment capacity, and credit assessment, in accordance with internal policies and regulatory guidelines.
Valar Aditi follows a transparent appraisal and documentation process, ensuring that borrowers clearly understand the terms and conditions, including interest rates, tenure, and repayment obligations. Disbursement is carried out only after completion of legal and technical due diligence of the property.
Repayments are structured through regular instalments, with continuous monitoring to ensure portfolio quality and borrower support. The institution adheres strictly to RBI regulations, the Fair Practices Code, and responsible lending principles in the delivery of LAP services.
Through the Loan Against Property model, Valar Aditi aims to provide reliable, secured credit solutions that enable borrowers to strengthen their economic activities while maintaining financial stability.