Microfinance is not confined to giving micro credit to the poor, rather it is an economic development tool with an objective to assist unprivileged to work their way out of poverty. It covers a wide range of services like credit, savings, insurance, remittance and also non-financial services like training, capacity building etc.
SELF is dedicated to understanding the unique needs of the unprivileged in order to serve them with the most relevant and effective products. Our customized offerings meet a wide range of borrowers’ needs. While maintaining a core product line, we strive to innovate in a timely manner based on our ever going learning and experience from field. As we build and expand our portfolio, we stay focused on our vision of enabling families to buWild assets, generate income, prepare for inconsistent cash flow, educate them financially and achieve SELF-RELIANCE. Each product and service offered by SELF is one that we truly believe can impact the lives of our members.
Microcredit is the extension of small loans to impoverished borrowers.
Those who lack collateral, steady employment, or a credit history.
It is designed to support entrepreneurship and act as a tool to alleviate poverty.
|Loan Product||Purpose||Cycle||Min Amount||Max Amount||Tenure||Frequency||Interest (Reducing)||LPF|
|Income Generative Loan||IGL||1||5000||20000||12 Months||Monthly||23.5%||1%|
|IGL||3rd And Above||30000||40000||24 Months||Monthly||23.75||1%|
|Water and Sanitation||New Toilet Construction||10000||20000||12 Months||Monthly||23.5%||1%|
|Toilet Renovation||10000||20000||12 Months||Monthly||23.5%||1%|
|Water Connection||10000||20000||12 Months||Monthly||23.5%||1%|
|Water Storage / Filter||20000||30000||12-24 Months||Monthly||23.5%||1%|
|Accessible Family Toilet||Toiler Construction and Renovation||20000||30000||12-24 Months||Monthly||23.5%||1%|
|Credit Linked Insurance||For 1 Year @rate of 5.1362/1000Rs for Borrower and Co-Borrower|
|For 2 Year @rate of 9.8669/1000Rs for Borrower and Co-Borrower|
|Note||1. Only interest, LPF & Insurance Premium is collected from borrowers.|
|2. The effective interest rate is 23.75% annum on reducing basis.|
Lending methodology plays an important part in the assessment of default risk, but so do socio‐economic factors such as market proximity, the potential for activities that add value, and gender. Micro entrepreneurs who have successfully repaid their first, second and subsequent loan will ascend along the progressive loan structure. Socio‐economic factors are decisive when it comes to lending in the microfinance sector, as they influence the generation of cash flows and with it the loan repayments.
A SHG (Self-Help Group) is a community based group with 10-20 members. They are usually women from similar social and economic backgrounds, all voluntarily coming together to save small sums of money, on a regular basis.
JLG consists of an informal group of 4 – 10 individuals (max 20) who are engaged in similar business/ occupation, formed with the purpose of availing loan through the group mechanism against mutual guarantee.