Affordable Asset-Based Financing for the Underserved
Many rural and informal entrepreneurs are limited to short-term consumption credit, with little access to financing solutions that support their livelihoods. SELCO Foundation partners with local ecosystem stakeholders to design and deliver long-term, cash flow-based financing solutions across sectors like agriculture, retail, textiles, and food processing.
On the supply side, we collaborate with rural banks, cooperatives, and financial institutions to co-create
asset-based financing products that align with entrepreneurial cash flows and drive inclusive enterprise growth.
On the demand side, we support entrepreneurs by identifying financing needs, building financial awareness, and helping prepare key documents like business plans and cash flow statements. We also link them to government schemes and margin money support—unlocking loans and building their bankability.
For the the financial solutions we work on, we ensure the following criteria are met
Affordable and are asset based that provide longer term value to end users
Context specific and customised , catering to user cash flows and diverse scenarios
Account for overall infrastructure and common community needs which may require extended periods of financing
Affordable and are asset based that provide longer term value to end users
We act within the financial ecosystem, in multiple capacities. We realise that technologies and innovators at various levels of maturity require different supporting functions to be successful.
Financing instruments like grants, debt, and equity should align with ecosystem maturity and user needs at two levels: end user level and enterprise level.
There are two types of programs which can be designed on demand and supply sides- one at the end user level and another at an enterprise level.
End User Level Program
Demand Side
- SELCO unlocks govt schemes for assets.
- We help end-users create assets using high risk capital.
- We unlock bank finance from banks by working with local NGO partners.
Supply Side
- SELCO works with banks to unlock loans using existing loan products.
- MoU with banks to provide loans using high risk capital.
- We work with banks to design customized loan products.
Enterprise level Program
Demand Side
- SELCO has programs that look at gap financing for their customers in remote locations and ensuring that timely servicing is available
Supply Side
- We help banks to empanel vendors for certain goods.
- SELCO has MoUs with banks to provide loans using high risk capital.
- We work with banks to design customized loan products.
For livelihoods in last-mile communities, capex refers to the upfront investment in tools, infrastructure, or technologies required to initiate or improve an activity.
Opex includes recurring expenses like raw materials, transportation, maintenance, or electricity needed to sustain day-to-day operations. Addressing both capex and opex is essential to ensure the long-term viability and resilience of livelihoods in underserved areas.
SELCO recognizes the need for unlocking both these elements and designs programs based on the end user needs.
