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Consumer Finance Partners

Over the last 4 years in Tamilnadu, Sustaintech India Pvt. Ltd. (SIPL) has learnt a lot about its primary customer segment and their socio-economic profiles. The operational efficiency of a PYRO stove justifies its purchase as a customer is able to repay the cost of the stove within 4-7 months, just by the amount of fuel savings achieved during the period.

Listed Below is the business profile of a typical street food vendor that SIPL caters to:

  • Age: 35-55
  • Location of business: Near Bus and railway stations, other landmarks like tourist spots, industrial clusters and state / national highway intersections of tier 2, 3 and 4 towns
  • Years of vending experience: 3-15 years
  • Number of meals served per day: 150 – 200
  • Average Daily Revenues: 3,000 – 4,000 (INR)
  • Average Daily Savings: 750 – 1000 (INR)

PYRO-nomics and Payback Period

Conventional Mud Stove (Firewood) LPG
Daily Fuel Costs (Before Pyro: INR) 450 650
Daily Savings in Fuel Costs (After Pyro: INR) 225 445
Monthly Savings in Fuel Costs (After Pyro: INR) 6750 13650
Estimated time for repayment (Months) 7 5

Assumptions for Calculations

  • Firewood at Rs. 4.5/ kg, with firewood consumption at 100 kg / day
  • LPG at Rs.1300 / cylinder, restocking 1 cylinder every 2 days
  • 50% of savings used for loan repayment
  • Avg Loan Ticket Size: Rs. 25,000

A total of 108 SIPL loans worth of 34 Lakh Rs (approx) have been disbursed by Mixrograam alone during the period of April 2014 to January 2017. Separately, through a pilot with SELCO Foundation’s Entrepreneurship Fund, SIPL has managed to finance 5 loans in Karnataka, amounting to Rs. 1,35,000. The table also does not include loans 14 financed via Kinara Capital in 2014-15.

Partners

Our consumer finance partners work with us to provide our end consumers with more flexibility in their payment methods for the PYRO range of products.

But our consumer finance partners do so much more than just allow our customers to buy our products. These institutions are integral in promoting financial inclusion. By accessing traditional forms of financing, our customers are able to enter the formal system and thereby be better situated to possibly access other financial products such as other types of loans and insurance products. Not only is this a way for customers to ensure their own development, but this is a prime business opportunity for consumer finance institutions to work with a large and untapped market.

  1. Micrograam

    MicroGraam is a peer-to-peer lending platform that aims to provide affordable, micro-loans to rural Indians and rural entrepreneurs with access to loans from socially minded investors. Find out more at Micrograam.

    Click below to see a customer profile of Pyro customers financed via Micrograam :
    Ajay Kumar
    Muniraj Ramappa

  2. Selco Foundation

    In 2016, Sustaintech executed a pilot with the support of SELCO Foundation in Tumkur and Bengaluru Rural Districts. With the “Entrepreneur Fund”, developed by SELCO Foundation, access to finance was achieved for Sustaintech’s customers in these newer areas. The exercise helped SELCO Foundation to understand Sustaintech’s customer segment better and extend their research on access to finance for various energy products, in order to inform policy. Sustaintech & SELCO Foundation will continue exploring other avenues to work together, in order to benefit other players in Sustaintech's value chain. Find out more at Selco Foundation.

In the past we have also worked with Madura Microfinance, Kinara Capital and Shri Kshetra Dharmasthala Rural Development Project

Become a partner

SIPL seeks partnerships to work with organizations in the financial inclusion space who can offer the following services:

  1. Willing to lend to individuals with almost no formal financial history. These individuals are typically entrepreneurs who run small eateries on highways or in rural areas, primarily catering to the BoP.
  2. Willing to lend loan amounts in the range of Rs.15,000 to Rs. 50,000.
  3. Should ideally have own collection agents who can also double up as business agents.
  4. Should be open to make available flexible collection and EMI repayment options.
  5. Should have geographic presence in the 4 southern states of India viz Tamilnadu, Kerala, Karnataka and Andhra Pradesh.

To work with Sustaintech as a potential consumer finance partner, please email us at info(at)sustaintech(dot)in.