Our Methodology Sonata Finance Private Limited (the Company) was acquired by Kotak Mahindra Bank Limited (the Bank) and has been functioning as a wholly- owned subsidiary of the Bank w-e-f 28th March 2024. As a facilitator for Micro Lending –the Company is acting as the Business Correspondent to the bank. Key Factors of Our Methodology The Company assists the bank in disbursing micro loans. Following factors are essential for our working: Social Collateral: As a business correspondent partner for Kotak Mahindra Bank, the company facilitates loans to borrowers who lack collateral. Through a group lending model, borrowers are organized into groups, collectively assuming responsibility for each member’s loan repayment. This approach enables greater financial inclusion by fostering mutual support and accountability among borrowers. Cash less Operation: On behalf of Kotak Mahindra Bank Ltd., the company disburses loans via bearer cheques or NEFT transfers, with most collections conducted digitally. This cashless approach minimizes risk and enhances security, ensuring minimal cash handling throughout the process. Customized Products: In its role as a facilitator for micro-lending, Sonata distributes loan products developed by Kotak Mahindra Bank Ltd. (KMBL). These products feature small, manageable repayments designed to support borrowers in avoiding emergency distress sales, nurturing financial stability within underserved communities. Focus on Women: As a micro-lending facilitator, the company focuses on serving a customer base primarily composed of women, empowering them through accessible financial solutions tailored to bring growth and financial independence.