New Delhi, India, 2 February, 2026: In an in-depth virtual interaction with Entrepreneur News Network, senior journalist spoke with Rahul Tripathi, Chief Product Officer at Dvara KGFS, to examine how climate risk is reshaping rural finance in India. The discussion explored Dvara KGFS’s evolving role as a medium-tier NBFC operating deep in rural and semi-rural geographies. From flood- and drought-prone districts to cyclone-exposed coastal belts, he outlined how the institution is integrating climate risk assessments, ESG-driven product design, and women-centric financial inclusion into its lending strategy—positioning itself not just as a credit provider, but as a long-term resilience partner for rural households and enterprises.
Q: What prompted Dvara KGFS to focus on deep rural India rather than urban or semi-urban markets?
Rahul Tripathi: Dvara KGFS started its journey in 2008 as part of Dvara Holdings, a venture studio with deep roots in agriculture and rural markets. Our mission has always been to maximise the financial well-being of rural households, and over time we realised that this cannot happen without strengthening rural livelihoods and enterprises.
Financial inclusion is required everywhere, including metros and Tier 1 cities, but the access gap is most acute in deep rural India. That is where our founders had experience, and that is where the need for affordable finance was most evident.
Q: What climate-related shocks are having the most direct impact on rural household balance sheets today?
Rahul Tripathi: We are seeing a clear intensification of climate risks over the years. Floods, cyclones, droughts, and excessive heat are no longer isolated events. For instance, eastern Odisha and the southern delta regions face repeated cyclonic storms, North Bihar remains highly flood-prone, and parts of Karnataka are increasingly affected by drought and heat stress.
These shocks disproportionately impact financially vulnerable rural households, because their incomes are closely tied to agriculture, livestock, and small businesses. When weather events disrupt livelihoods, repayment capacity and household stability are immediately affected.
Q: How is Dvara KGFS assessing and responding to these climate risks at a portfolio level?
Rahul Tripathi: As part of our ESG framework, we have undertaken a climate risk impact study across our entire portfolio, covering all 11 states where we operate. This assessment is being conducted district by district, wherever data is available, with the support of an independent Europe-based climate risk consultant.
We have identified five key risks—floods, cyclones, droughts, excessive heat, and wildfires—and assigned weights to understand portfolio exposure. While RBI’s climate risk guidelines currently apply only to upper-layer NBFCs, we have taken this step proactively because we see climate risk as a real and present threat, not just a regulatory requirement.
Q: Is this climate risk study public, or is it currently for internal use?
Rahul Tripathi: At present, this is an internal study. It is still underway and about halfway through completion. Once finalised, we intend to publish the findings in our upcoming annual reports. Measuring risk is essential, because it is only when you measure it that you realise how deep and systemic the impact can be.
Q: Why do traditional financial products like standalone credit or insurance often fall short during climate shocks?
Rahul Tripathi: Most financial products still operate in isolation. Parametric insurance, for example, is an evolving space and is typically linked to predefined triggers like temperature or rainfall thresholds. These triggers do not always translate into customer-friendly outcomes.
On the lending side, loans are often designed without accounting for region-specific climate risks. The challenge—and the opportunity—lies in integrating these products in a way that genuinely supports customers during climate stress.
Q: How is Dvara KGFS integrating climate resilience into its loan design?
Rahul Tripathi: We are increasingly embedding risk mitigation into loan usage itself. For example, if a customer operating a kirana store is located in a flood-prone area, we encourage them to allocate a portion of the enterprise loan toward building raised platforms to protect inventory.
The responsibility of a lender does not end with loan disbursement. It also includes educating borrowers about the risks associated with their business and helping them mitigate those risks over the tenure of the loan.
Q: Are you offering integrated solutions that combine credit, insurance, and advisory services?
Rahul Tripathi: Yes. One of the approaches we are taking is premium financing for parametric insurance. Instead of customers paying insurance premiums upfront from their own wallets, we provide a loan for purchasing the insurance product itself.
This is not very common in the MSME space, but it reduces the immediate financial burden and improves adoption. Our aim is not fear-mongering, but awareness—helping customers understand that risk mitigation can be funded through their own economic activity.
Q: How do savings, advisory services, and emergency support help households during climate emergencies?
Rahul Tripathi: We are building new product features such as repayment holidays for customers affected by floods or other climate events. We are also introducing emergency loans with smaller ticket sizes and shorter tenures.
The objective is to ensure that households do not have to compromise on essentials—such as children’s education, food consumption, or healthcare—during temporary income disruptions. These interventions are designed to help families tide over shocks without long-term damage to their financial stability.
Q: How does Dvara KGFS personalise financial solutions, especially for women-led households and first-time formal finance users?
Rahul Tripathi: The climate risk study allows us to customise products at the district level. Each loan can be designed with inbuilt awareness of local climate risks and, where relevant, bundled with insurance.
Our operating model is high-touch and physical rather than fully digital. During onboarding, we assess households, businesses, and assets such as cattle sheds. For example, if we know a dairy household is located in a heat-prone region and lacks water storage or cooling facilities, we recommend investing a portion of the loan in those areas to protect productivity.
Women-led households are central to our model. Since inception, group loans for women have formed the backbone of our portfolio. These group loans often serve as the entry point into formal finance and later qualify customers for enterprise loans.
Q: Can you share concrete data on women borrowers and financial inclusion outcomes?
Rahul Tripathi: As of FY25, we have 5,34,132 active women loan customers, who constitute 93.58 percent of our total customer base. During the year, we disbursed INR 896.8 crore in income-generation loans to women, covering 1,29,295 loans.
We have also disbursed 6,589 WASH loans, amounting to INR 36 crore, to support investments in water, sanitation, hygiene, and rainwater harvesting. These numbers reflect our continued focus on women-led households and use-case-driven finance.
Q: What does your data reveal about social inclusion and enterprise growth?
Rahul Tripathi: In FY25, we disbursed over INR 346 crore in loans to SC, ST, and OBC customers, reflecting our focus on inclusive growth. Education loans worth INR 104.6 crore, covering 17,934 households, were also extended to support schooling continuity.
Our enterprise loan portfolio for nano and micro entrepreneurs stood at INR 706.74 crore, accounting for 32.1 percent of our AUM, underscoring the growing role of rural enterprises in household resilience.
Q: What insights from your data could be most valuable for policymakers?
Rahul Tripathi: We track outcome-based indicators, not just disbursement numbers. For instance, our data shows a 25 percent improvement in financial resilience, compared to a national benchmark of 24 percent, and a 23 percent reduction in financial worry, versus a 21 percent benchmark.
We also track agency and dignity metrics. Seventy-six percent of clients report increased joint decision-making within households, indicating improved agency for women. On household outcomes, we see measurable improvements in income (16%), quality of meals (21%), access to education (23%), and access to healthcare (23%), all of which exceed national benchmarks.
These insights highlight that financial inclusion must be evaluated through outcomes, not just access.
Q: Finally, what is Dvara KGFS’s five-year vision in the context of climate risk and rural development?
Rahul Tripathi: We want to be seen as a trusted partner—financially and emotionally—during times of distress. Our vision aligns with India’s goal of becoming a Viksit Bharat by 2047, which cannot be achieved without building resilience in rural markets.
Over the next five years, we will continue developing purpose-driven, customer-centric products—ranging from sanitation and water storage loans to climate-resilient enterprise finance. Our focus is on nudging households and rural businesses toward long-term financial and climate resilience, rather than short-term consumption.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape.