Rafeeq Pasha sits in his store with a calm that belies the chaos in the market where his shop is situated. He says with a disarming smile "I have been just taking small steps all my life. When I look back down the road now, I am amazed how much distance has been covered." Rafeeq knows a thing or two about what it takes to cover long distances on foot! He runs a profitable business in footwear trading.
The Challenges
He came from a financially backward family and used up every bit of his savings to start the business. He ran the business from a rented shop near his hometown, in Doddaballapur, Karnataka. His business did not do too badly even in early years. However he had to deal with two issues. Firstly as the market area was expanding, the rentals kept going up. Secondly, every few years what is 'fashionable' in footwear would change and he had to reinvest in inventory. He would borrow from local money lenders but soon realised that the interest rates they would charge were not financially viable.
The Transformation
One of the wholesale footwear suppliers knew about Aye as some of the clients were already customers of Aye. Rafeeq's first loan was of Rs 1.5 lakhs. His relationship with Aye has got stronger with time. He is a repeat customer of Aye with his current loan at Rs 4 lakhs.
The Impact
His most memorable moment came when he was able to buy the shop that he had been renting. Being the owner of the shop gives him a sense of stability and is a measure of success of his business. What sets this story apart is the responsible way Rafeeq managed his timely repayments. His consistency in repaying the loan was rewarded with successive repeat loans that further propelled his business growth. Reflecting on this he says "I had no trouble with the company and the company had no trouble with me." Each repayment was a step towards greater stability, and each loan was a stepping stone to success.
