Micro Loan Product:
Bandhan extends micro loans to the poor women. First of all formation and development of group of 10-20 poor women takes place. The loans are disbursed individually with the recommendation of the group. The members are entitled to receive loans after they have attended minimum two successive weekly group meetings. The selection of the borrower and the final decision depends upon the assessment done by the staff – this includes physical visit to the borrower’s house and project. The final approval is given by the Branch Manager.
Client Profile:
- Landless and asset less women
- Monthly household income less than Rs. 2,500 in rural areas and Rs. 3,500 in urban areas
- Individuals owning less than 50 decimal (1/2acre) of land or capital of its equivalent value
Product Features:
- The first loan is between Rs. 1,000 - 7,000 for the rural areas and between
Rs. 1,000 - 10,000 for the urban areas
- A service charge of 12.50% per annum is levied on the loan amount
- The subsequent loan is Rs. 1,000 - 5,000 more than the previous loan
- Tenure of the micro loan is 1 year, repayment in weekly instalments. The borrowers are entitled to a grace period of 7 weeks.
Click on the link to view:
An introduction to Bandhan video
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