Cross-Selling of FMCG/FMCD Products by Microfinance Companies in Rural India

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In the vast landscape of rural India, access to flexible financial products remains crucial for the well-being of the rural masses. Micro-Finance Institutions (MFIs) are striving to bridge this gap by offering innovative market-oriented products that combine the much-needed features of flexibility and discipline. However, striking a balance between these two seemingly opposing traits presents a challenge.

Arukus Technologies Cross-Sell application, empowers MFIs to manage the delicate trade-off between product flexibility and financial discipline effectively. Through their customizable platform, MFIs can tailor products to meet the diverse cash flow needs of rural clients while fostering financial discipline.

One striking solution that Arukus Technologies offers is the “repayment schedule with repayments starting right after the product delivery.” This feature enhances discipline for two primary reasons: it identifies households with multiple income sources, considered less risky, and enables small, manageable payments for the rural masses.

Moreover, this platform serves as a new channel for FMCG (Fast Moving Consumer Goods) companies to penetrate the rural market. As urban markets near saturation, FMCG companies increasingly turn their attention to the rural segment, comprising nearly 70% of the country’s population. While FMCG products with low price points gained early traction in rural areas, FMCD (Consumer Durables) products faced challenges due to their higher price tags and complex EMI collection processes.

MFIs with their extensive reach and branches scattered across states, serving millions of customers can now look at cross-selling FMCG/FMCD brands along with financing options to rural customers at MFI branches. With stock availability ensured, borrowers can select products from a wide variety and opt for credit-based purchases.

Notably, during loan collection visits, field agents showcase FMCD product catalogs to borrowers, fueling impulse purchases and spurring sales. This approach has proven particularly effective for items with long shelf lives, such as fans, televisions, sewing machines and refrigerators, offered by renowned brands like Samsung, Nokia, Godrej, LG, and more.

The value proposition for rural buyers is undeniable – access to renowned brands at affordable installment amounts, fulfilling daily needs and improving lifestyles. These products not only enhance rural families’ productivity but also come with free installations and door-to-door post-sales services, courtesy of dedicated vendors.

As Arukus Technologies revolutionizes financial access for rural masses and enables MFIs to serve as conduits for FMCD brands, the potential for economic empowerment and improved standards of living in rural India is boundless.

With Arukus Technologies Cross-Sell application, Microfinance Institutions can unlock new revenue streams by cross-Selling of FMCG/FMCD products to the rural communities, and pave the way for a brighter future.