MFI Saathi

The Microfinance Collection Crisis in India
Each day, through India’s rural backlands, thousands of microfinance collectors venture out on foot, collecting tiny loan repayments door to door. They are the human connection between formal lenders and India’s most marginalized borrowers. But behind such a noble mission of financial inclusion is a thin system—prone to cash risks, less-than-efficient tracking, and escalating delays.

Equipped with nothing more than notebooks and a suitcase full of cash, these agents tread difficult landscapes, long hours, and security risks. One misstep can cost them their paychecks—or even their lives. And when records are written by hand and cash is the preferred payment method, it’s not only the agents who hurt, but also the lenders and borrowers.

Why the Current Model is Broken
For field agents, physical cash handling exposes them to a constant risk of theft, loss, or misreporting. They are devoid of tools for efficient tracking, often carrying the emotional burden of defaults and disputes.

For lenders, this results in delayed or lost repayments. As much as 20% of collections are delayed, escalating operational expenses and diminishing confidence in microfinance systems.

For the borrowers, particularly women and daily wage workers, repayment of loans becomes hassle-prone and stressful. Most of them have to walk miles or quit work early just to pay a few hundred rupees—most of the time to a stranger whom they hardly know.

Introducing MFI Saathi: A Smarter Collection Network
MFI Saathi revolutionizes this antiquated process through a verified, tech-savvy network of trained local agents—Saathis. It substitutes risk-free, manual collection with digital-first options while elevating local workers to professional status and tools.

How MFI Saathi Revolutionizes the Microfinance Industry
For Field Agents:

Saathis are paid more through digital collection incentives and performance bonuses

They work safer with GPS-tracked routes and in built-in emergency alerts

Professional identity is established by way of certification and training programs, enhancing their contribution to society

For MFIs:

Cut collection expenses by 30–40% through automation

Enhance on-time repayment with real-time dashboards and alerts

Scale operations to new geographies without adding more full-time staff

For Rural Communities:

Repayments become more flexible through local Saathi touchpoints

Financial literacy improves via digital receipts and WhatsApp reminders

Creates dignified jobs in villages, particularly for women and youth

Powered by Tech Built for Bharat
MFI Saathi operates on a light, open tech stack that performs even in low-resource environments:

WhatsApp-first interface (no app install required)

UPI/QR-based collections, which are coupled with MFI backend systems

Voice-driven and IVR-driven flows for non-literate borrowers

Offline sync mode for agents operating in far-flung or low-connectivity regions

Real Stories, Real Change
In Tamil Nadu, a two-child widowed mother now makes ₹15,000/month as a certified Saathi, securely collecting repayments on her feature phone. In Odisha, a farmer cooperative lowered loan defaults by 22% after converting to Saathi-enabled digital collections.

These are just the early days of what can be achieved when we combine trust with technology.

Building the Future of Rural Finance
MFI Saathi is not just a tool—it’s the foundation of a new category: community-based financial professionals. Our roadmap includes:

Savings & Insurance integration to deepen rural financial resilience

Partnerships with India Post and CSCs to expand rural access

Regional language support to ensure inclusivity across states

Join the Movement
We’re calling on

MFIs and NBFCs ready to digitize and scale their collections

Local entrepreneurs looking to become certified Saathis

Tech collaborators and investors who share a vision for sustainable inclusion

Together, we can institutionalize microfinance, mitigate risk, and make the last mile of India’s financial system its strongest as well.