Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

PRODUCTS

RGVN started the process of microcredit intervention in the year 1995 with a single mode of operation, i.e., the SHG model. Over a period of time, taking into consideration the desires, aspirations and the capability of its members, RGVN(NE)MFL arrived at the conclusion that a bunch of different client-friendly loan products can be introduced for bringing in more clientele under our fold. These technical innovations are also found to be of much practical significance to turn our vision of serving the entire northeast region impacting 5 lakh clients by 2017 and facilitate better access to health, education and livelihood opportunities into a reality. Again since prominent microfinance organization, RGVN(NE)MFL is committed to issues like women empowerment, entrepreneurship development and a higher standard of living among its beneficiaries so that the level can be maintained in the long-run, the mission decides to operate with a range of products so that the requirements of its member base can be effectively addressed.


The purpose of the loan products introduced by RGVN(NE)MFL can be listed as below:

* For meeting the household need,
* Smoothening cash flow,
* Diversifying income sources by investing in livelihood activities,
* Promotion of entrepreneurial spirit,
* Efforts to meet certain special cases of cash requirements in events like marriage, education, etc. among the members.


SELF-HELP GROUPS .

The inner spirit of the SHG programme launched by RGVN(NE)MFL had revolved around certain basic norms:

* Effort is built on mutual trust and mutual support, equality and responsibility is uniformly placed across the group
* The cause of the group is understood equally by all the members and committed with equal extent,
* Decision taken is based on the principles of consensus,

THE PROCESS: RGVN (NE) MFL since the launch of SHG carefully selects its poor women client who is engaged in taking up small business activities, agriculture, and petty trade etc. At present, a Credit Officer from this programme surveys the area for potential target clients and a group 0f 10-20 women is formed and the concerned Credit Officer [CO] appraises the group about the, loan products and terms and policies. They are briefed about book keeping, keeping minutes of group meeting, maintaining savings register. Group Recognition test is conducted generally within a month or two to test their capabilities, so that proper financial assistance can be advanced. The GRT is conducted along five lines which address the following issues:

1. Group discipline and cohesiveness,
2. Savings mobilization,
3. Qualitative assessment of members’ participation,
4. Qualitative assessment on leadership,
5. Qualitative assessment on record keeping and accounts.

The loan is provided to the entire group usually in one go.
Disbursement is provided via an account payee cheque.

Salient Feature of the SHG Mode:

1. Maximum Ceiling (1st cycle): Rs.15000/- per member.
2. Maximum Limit of Loan: Rs.50000/- per member
3. Administrative Charges: 1% on loan amount
4. Interest Rate (Assam) : 24% p.a. except BTAD area of Assam
5. Interest Rate (other than Assam): 20% p.a.
6. Loan Tenure: 1 year for loan below Rs.15000/- 2 years for loan above Rs.15000/-
7. Repayment frequency: Fortnightly

On successful completion of 3 loan cycles with good repayment track record, the client who has entrepreneurial ability shall become eligible for entrepreneurship development loan.

JOINT LIABILITY GROUP

Group liability, a contract feature found in many programs, is a common component in many microfinance programs. By making a group of clients liable for each other’s loans, clients make sure that funds are invested in profitable enterprises. Finally, enforcement is enhanced because clients face peer pressure, not just legal pressure, to repay their loans. RGVN(NE)MFL relies on this mode of intervention since JLG is a mechanism to improve our level of sustainability, so that a continued process of intervention continues.

THE PROCESS: For Joint Liability Group the client profile is selected from self-employed women for the purpose of animal husbandry, poultry, petty trade, handloom and handicraft and fishery. The groups are crated with 5 women with mutual understandings can be the member of the group.

NORMS:

• 5 women who have experiences in handling funds previously. They should have similar cash flow pattern to form a group and low income group as per prescribed b RBI
• It is a credit group.
• Group has no leader or a treasurer.
• Members are individually and jointly liable to each other

Salient Feature of the JLG Mode:

1. Maximum Ceilling (1st cycle): Rs.15000/- per member.
2. Maximum Limit of Loan: Rs.50000/- per member
3. Administrative Charges: 1% on loan amount
4. Interest Rate (Assam) : 24% p.a. except BTAD area of Assam
5. Interest Rate (other than Assam): 20% p.a.
6. Loan Tenure: 1 year for loan below Rs.15000/- 2 years for loan above Rs.15000/-
7. Repayment frequency: Fortnightly

ENTERPRENEURDHIP DEVELIOPMENT LOAN (INDIVIDUAL LOAN)

Loans provided to SI-IG/.1LG clients with good repayment track record in the last two loan cycles shall be indentified as EDl
Client to evince entrepreneurial ability
To initiate / augment income generating activity of his/ her own.

Salient Feature of the JLG Mode:

1. Maximum Ceilling (1st cycle): Rs.15000/- per member.
2. Maximum Limit of Loan: Rs.50000/- per member
3. Administrative Charges: 1% on loan amount
4. Interest Rate (Assam) : 24% p.a. except BTAD area of Assam
5. Interest Rate (other than Assam): 20% p.a.
6. Loan Tenure: 1 year for loan below Rs.15000/- 2 years for loan above Rs.15000/-
7. Repayment frequency: Fortnightly


MICRO ENTERPRISE LOAN (INDIVIDUAL LOAN)

Clients who have entrepreneurial skills having productive units, (men or women) are targeted
Loans provided for income generating activity to good entrepreneurs with definite skills willing to start own enterprise/have any production unit of his/her own

Salient Feature of the JLG Mode:

1. Maximum Ceilling (1st cycle): Rs.15000/- per member.
2. Maximum Limit of Loan: Rs.50000/- per member
3. Administrative Charges: 1% on loan amount
4. Interest Rate (Assam) : 24% p.a. except BTAD area of Assam
5. Interest Rate (other than Assam): 20% p.a.
6. Loan Tenure: 1 year for loan below Rs.15000/- 2 years for loan above Rs.15000/-
7. Repayment frequency: Fortnightly