Optimizing Financial Inclusion: Sustainable Lending Model of IFMR Capital

Abstract

This case examines IFMR Capital's novel strategy for enhancing financial inclusion via sustainable lending frameworks aimed at underprivileged low-income households in India. The company serves the housing finance, microfinance, and small business markets by using digital credit assessments, risk-based pricing, and a low-cost operational architecture. Internship observations show that there are problems with borrower onboarding, credit bureau integration, and servicing efficiency, as well as the need to balance social impact with financial sustainability. The case integrates academic perspectives from microfinance, digital credit scoring, and social impact measurement literature, contextualizing IFMR Capital’s model within dynamic regulatory and competitive environments. Some of the most important problems managers face are how to increase the number of loans they can make without hurting the quality of their portfolios, how to make pricing models work better, and how to use technology to make their businesses bigger. The case prepares students to weigh the pros and cons of different business models for financial inclusion, combine impact metrics with profitability, and create governance systems that align the interests of all stakeholders. It is noted that there are limits and assumptions.