In the bustling landscapes of India’s semi-urban and rural regions, where the banyan tree symbolises resilience and shelter, a company named Bargach Finance Private Limited has taken root, embodying these very values. Founded in 2019 by three first-generation entrepreneurs, Rahul Johri, Prashant Sahu, and Sumit Hans, Bargach set out on a mission to address the pressing, often overlooked needs of financially excluded households: access to clean water, proper sanitation and livable homes.

A Mission Rooted in Necessity
Bargach’s inception stemmed from the founders’ shared experience in microfinance, particularly their tenure at Bandhan Bank. Observing the gap in financing for essential needs like sanitation and home improvement, they envisioned a venture that would extend loans for these purposes. Through small-ticket loans ranging from ₹35,000 to ₹1,00,000, Bargach enables women borrowers— primarily from marginalised communities—to improve their living standards. The loans address three critical areas:

1.Sanitation and Toilets: Aimed at eliminating open defecation and ensuring dignity and safety for women and girls.
2.Clean Drinking Water: Mitigating waterborne diseases by funding household-level drinking water facilities.
3.Home Improvement: Financing small yet impactful upgrades like plastering walls, replacing roofs, or installing doors, creating healthier and more secure living spaces. These initiatives align closely with India’s Sustainable Development Goals (SDGs), particularly Goal 6 (Clean Water and Sanitation) and indirectly support goals around gender equality and well-being.

Challenges and Triumphs
Starting from Kharagpur, West Bengal, the company expanded into Odisha, Madhya Pradesh, Rajasthan and Telangana, operating through 78 branches with a team of 460 employees. However, the journey was not without hurdles. Convincing lenders to support loans perceived as “non-productive” was initially difficult. Yet, with perseverance, Bargach demonstrated that these loans improve household health, reduce absenteeism from work due to illness and ultimately enhance livelihoods. Bargach reduced operational costs through paperless customer onboarding, digital collections and automated fund transfers. Additionally, they offer risk mitigation products like health and life insurance to further secure their borrowers.

Impact in Numbers
By March 2024, Bargach’s loan portfolio had reached ₹168 crore, with disbursements totaling ₹272 crore among over 55,000 borrowers. The firm’s vision is ambitious yet achievable: to touch the lives of 5 lakh households by 2027. This goal is driven by both increasing productivity at existing branches and expanding into new geographies.

Stories of Transformation
Behind these statistics are stories of profound impact. Women who once walked miles for water now have taps at home. Families, previously exposed to the elements, sleep safely under sturdy roofs. Mothers no longer fear for their daughters’ safety due to the availability of indoor sanitation. Each loan granted by Bargach represents a step toward dignity, security and hope.

A Sustainable Future
Bargach’s growth mirrors its commitment to community and sustainability. Its partnerships with financial institutions like Jana Small Finance Bank and Avanti underscore its credibility and scalability. Yet, beyond numbers, the company’s true success lies in its ability to transform lives, fostering resilience and independence among its borrowers. As Bargach Finance looks ahead, it continues to stand tall like the banyan tree it is named after, sheltering and uplifting those in need. By focusing on health, hygiene and homes, it exemplifies how finance can be a powerful tool for social change, nurturing the roots of a better tomorrow.