Procedure of Loan Distribution and Collection:
01. System of loan giving – individual and group basis
02. Mandatory savings from beneficiaries – 5% on loan amount
03. Terms of loan repayment – within 10 months by weekly installment
04. From this financial year means 1st April 2004 we have started an insurance method that we call BDD (Beneficiaries Development Deposit) if any one die after taking loan we will adjust that amount through the above said deposit. We are taking 1st loan time as per her/his loan amount each Rs.1000 = Rs.10 which is non refundable. Our plan is, it will be adjusted only for death and left beneficiaries purpose to keep loan portfolio intact.
05. Rate of interest (Donation) 19% per annum.
Conditions of Loan:
01. Person must be economically distressed.
02. He/She must have a own house (no rented house).
03. Loan should be for improving business.
04. He/She should be literate or must have basic literacy before second loan or within 10 months.
05. Present Income.
06. His/Her responsibility towards family/society.
07. His/Her behavior.
08. Responsible guarantor (outside of his/her family).
09. In every family only one loan.
10. No further loan will be issued until his/her previous loan completed.
11. Weekly repayment must be maintained strictly (no other arrangement allowed).
12. Donation taking start from 1st week.
13. Field officer must maintain their area. No loan will be allowed in other area.
14. 90% loan to female must maintain.
15. From first loan – loan slab will be increased only Rs.500/-. (Generally is Rupees 1000/-)
16. Average loan size (within the month) must be Rs.2500/-.
17. Residential and business place enquiry must necessary before issue any loan.
18. Mandatory savings before loan getting at-least 5% on loan amount which is called Beneficiary Security Deposit (BSD).
19. The beneficiary has to pay each Rs.1000/- – Rs.16/- per month as donation or service charges.
20. Any Child Labor is not allowed in Business.