In the heart of rural India, amidst the underdeveloped regions of Odisha, Tripura, and Assam, a quiet revolution is underway. Vector Finance, a microfinance institution born from the vision of banking professionals, enables women entrepreneurs to build businesses, enhance livelihoods, and reshape their communities. Since its inception in June 2019, this organisation has been focused on transforming the lives of the underserved, one small loan at a time​.

The idea behind Vector Finance began with seasoned banking veterans—Rahul Johri and Prashant Kumar Sahu—who chose to leave their corporate careers to create a world-class microfinance entity. They were driven by a belief that genuine financial inclusion lies not in urban centres but in the often-ignored semi-urban and rural pockets of India. Their mission was ambitious: to empower women by offering collateral-free loans and promoting entrepreneurship while creating employment opportunities for rural youth​.

Vector Finance quickly established a network of 173 branches across six states, including some of India’s most challenging regions like the KBK districts of Odisha and Naxalite-affected areas in Chhattisgarh. By March 2024, the institution had impacted over 3.79 lakh households, extending loans totalling ₹524 crore. But Vector’s approach goes beyond lending; it is a comprehensive journey toward economic empowerment. From financial literacy workshops to enabling digital transactions, Vector Finance ensures that its borrowers not only receive funds but also the knowledge and tools to thrive​.

One of Vector Finance’s most innovative approaches lies in its focus on women entrepreneurs. Through Joint Liability Groups (JLG), women receive loans collectively, sharing responsibility and acting as social collateral for each other. This not only promotes financial discipline but also fosters a sense of community. Borrowers use these loans to start small enterprises—ranging from dairy farming to tailoring businesses—enabling them to generate income and secure better futures for their families. With the additional income, many families have reported improvements in their children’s education and a rise in their overall quality of life​.

Vector Finance has also created opportunities for rural youth by employing them as field officers. These young professionals, aged 21 to 32, undergo rigorous training and are entrusted with responsibilities that contribute to their personal growth. The institution’s commitment to retaining staff, even during turbulent times like the COVID-19 pandemic, reflects its focus on building a resilient workforce. The organisation employs over 1,000 staff members, and all of them are on the company’s payroll, ensuring accountability and operational efficiency​.

The journey, however, has not been without challenges. Vector faced funding constraints early on due to its newness in the sector. The onset of the COVID-19 pandemic further strained financial flows, as nationalised banks were hesitant to invest in small, emerging microfinance institutions. Despite these hurdles, Vector managed to retain all staff and maintain branch operations. In certain volatile regions, the company even navigated interactions with local power structures and insurgent groups, earning their respect by demonstrating its commitment to community development​.

Today, Vector Finance is more than just a microfinance institution—it is a catalyst for change. Through partnerships with organisations like Bargach Foundation, Vector promotes sanitation, drinking water access, and skill development in remote areas. With its eye on the future, the company aims to touch the lives of two million families by 2027, setting its sights on becoming one of the top microfinance entities in the country.

The impact of Vector Finance’s work is visible not only in its financial statements but also in the transformed lives of thousands of women who now have a voice in family decisions and a stake in the economic well-being of their communities.