Product

Group loan (JLG)

Individual Micro- Enterprise loan

Home Improvement Loan

Status

Current

Current

Current

Methodology

JLG (5 persons)

Enterprises

JLG (3 persons)

Target Profile

Very poor or lower middle class women

Tiny and very small enterprises

Existing clients with own property

Selection Criteria

·  Identity/Residency proof

·  Solidarity and coherence of the group

·  Track record of members

·  Compulsory training and group recognition test

· Legal status

· Track record of promoters

· Management team

· Viability of business

· Financial track record

·  Existing clients who have completed one full loan cycle

·  Couple and widows clients

·  Lending in three stages

Purpose

Any income generating activity, or consumption

Income Generation, asset development

Home Improvement for Rental Income

Terms

·  50 weeks + 2 weeks grace period

·  Repayment: weekly

· 50 weeks + 2 weeks grace period

· Repayment: weekly

·  24 months

·  Repayment monthly

First loan  Amt. (INR)

 6000 or 10000

30000

30000

Interest Rate (Diminishing)

27%

27%

26%

Security

·  Joint liability of all group members

· Collateral and a Guarantor for enterprises

· Two guarantors for individuals

·  Two co-borrowers as Guarantors

·  One additional non-borrower guarantor

·  Land documents