Introduction

Savings and Loan plays an effective tool to address the problem of poverty reduction through economic empowerment of women. Several studies and reports data shows that many of the poor especially women are left out to the financial system and many more are under served. RDMMSL is one of the formal medium to provide collateral free loan at cheaper rate of interest to poor women for start-ups or strengthening the income generation activities of women entrepreneur in rural as well as in urban areas.

Procedure for Saving collections and Loan disburse

• Collection (Membership, Loan repayment, etc...)
• Loan Disburse
• Group / Individual Member attendance

Collection Process of field Staff:

• Filling the membership application and get the KYC details and signature of the member
• Group Creation
• Generate the receipt through Trim for membership fee
• Set the meeting dates and request to attend on the same date for saving amount collections and loan amount issues
• Maintain the attendance of each member
• In case of delay in payment of saving amount penalty will be changed Rs. 2/- in rural areas and Rs. 5/- in urban areas accordingly.

Eligible Parameters for lending of women groups

• A borrower should be the member of Women's group from last one year
• Age of the borrower is less than 60 years at the time of loan disbursement.
• Borrowers are individual members or from Group members

Required documents from Women groups/members to be taken by IMOs

Know Your Customer (KYC) card incorporated with latest photo, identity proof and address proof.

• Identity proof document: Aadhar Card / Voter ID and the Joint photo and residence address
• Residence proof document: Aadhar Card / Ration card / Electricity Bill / Telephone Bill/ Bank Passbook / Letter from the head of village viz. Sarpanch / Pradhan / Gram-Sewak certifying the photo and residence address.
• KYC card must have the name, address, ID number with latest passport size photographs and signatures/thumb impressions of all the members of the Group.

Purpose/need of loan

• Income generating activities: Small Business, Asset Purchase etc.
• Life Cycle need: Birth, Death, Education, Marriage, House construction, Old age, Widowhood, festival, other family events, etc.
• Emergency need: Medical emergencies, Natural calamities, Theft & Accidents. Finance/Refinance will be eligible for loans given to women for above mentioned three purposes/needs. 99% of loan amount should be used only for income generation activities. At initial the maximum amount of composite loan per borrowers under RDMMSL scheme at present is Rs. 5,000 under Village loan scheme. This amount will be guided by extant RDMMSL In village mostly women are involved in agriculture, petty shops, livestock rearing, labour etc. However an income generation loan serves the purpose if borrowers are of similar economic background, have almost similar kind of incomes and cash flows and hence single product is good enough to serve them even if they are involved in different income generating activities.