Access to credit is still limited outside urban areas. People often lack the necessary reserves to cope with emergencies. Demographic remoteness and thinly spread clientele restricting the institutions from entering into rural segment. Additionally, operating cost for securing and maintaining liquidity is high. On the other hand, lack of collateral or legal title against the house and land results higher credit risk for the rural financial institutions.
On-time availability of credit plays an important role in poverty lessening through the process of inclusive growth of the marginalised and poorer sections of the economy. Credit allows households to borrow against future income and invest in economic opportunities outside the scope of their disposable income. Sampark Fin Services Pvt. Ltd. offers microcredit facilities to underprivileged women to start and expand their own business and is taking various measures to promote and expand financial inclusion for the poverty-stricken population of the country. Currently, it is working in 14 districts of 3 states namely, Odisha, Bihar & Chhattisgarh.