BACKING YOUR FINANCIAL NEEDS
The Microfinance division was launched by Muthoottu Mini in 2016 with the aim of empowering women by providing financial independence. Using the Joint Liability Group (JLG) model, where members guarantee one another’s loans, we offer loans to support women’s entrepreneurial activity. In microfinance, individuals and small businesses that lack access to conventional banking and other services are targeted. Microfinance services are designed to reach excluded customers, usually lower segments of the population, possibly socially marginalized, or geographically more isolated, so that they can become self-sufficient. Microfinance aims to help individuals, low income households, small businesses and start-ups prosper as well as rebuild during times of crisis. People from economically backward communities can benefit from microfinance since it is easy to use and can make a positive difference in their lives. There are currently 86 branches all over Kerala with Assets Under Management (AUM) over 150 crores with 40,000 live clients. So far more than 1,00,000 loans were distributed to the women entrepreneurs since inception.
Collateral Free Loans
On Joint Liability
To Empower Women
The product details are as given below
1. Microfinance loans are collateral free loans given to female clients having annual household income up to ₹3,00,000 on the basis of joint liability. Loans are repayable in equated instalments over a period of time .
2. Loans are given to groups of ladies for declared legal end use, like business expansion, working capital needs, purchasing raw material, purchasing animals etc.
3. The loan amounts are ranging from Rs.10,000 to Rs.1,20,000/- based on eligibility and repayment capacity.
4. Higher loan amounts for subsequent cycles are given based on repayment behaviour.
5. The loan tenure can be from 1 year to 3 years based on the loan amounts.
6. The clients will have weekly/fortnightly /monthly meetings in a designated place called centre where they pay back the loans to the field staff of the company.
7. All process and procedures are formulated based on RBI’s guidelines issued from time to time.
Ans: Muthoottu Mini Financiers provide microfinance services through the Joint Liability Group (JLG) Model, whereby group members guarantee each other’s loans. The concept of microfinance encompasses providing small loans to underprivileged individuals.
Ans: Microfinance is a financial service that targets individuals and small businesses who do not have access to conventional banking services.
The objective of microfinance is similar to that of microcredit; its goal is to provide financial services to help encourage entrepreneurs in impoverished nations to act on their ideas and obtain the financial tools available to do so and to eventually become self-sustainable.
Loans are given to groups of ladies for declared legal end use, like business expansion, working capital needs, purchasing raw material, purchasing animals etc.