Transcript Document
REPCO FOUNDATION FOR MICRO CREDIT REPCO BANK MICRO HOUSING SCHEME Presentation by M. Balasubramanian Chairman. 1 7/17/2015 www.repcobank.com Repco Foundation – An Overview REPCO BANK • An NGO – Promoted by the Repco Bank (A Govt. of India Enterprise). • A Section 25 Company – Not for Profit. • Extend supporting services to Self Help Groups • With a view to increase the income level and to improve the standard of living. 2 7/17/2015 www.repcobank.com Role Play REPCO BANK • Group formation : Promoted about 10,000 SHGs. • Capacity Building : Trained about 70,000 members and established more training centres. • Bank Linkage : Facilitated 1,65,000 SHG families with bank loan. • Follow up & monitoring : Maintained 100% recovery in all. • Mobile bank service : Doorstep banking services to remote villages. • Smart Card • service : Transparent cash collection at nearest locations. 3 7/17/2015 www.repcobank.com Role Play contd.. REPCO BANK Business Facilitator Business Correspondent • For Repco Bank – all • For IOB – branches at branches in Tamil Thiruvallur Districts Nadu. • For IOB – branches at Thiruvarur District 4 7/17/2015 www.repcobank.com OTHER SERVICES REPCO BANK • Insurance – • Pension Scheme Providing Insurance through LIC Janashree Bima Yojana Scheme. Pension scheme UTI MF implemented in Tamil Nadu. • Marketing Partnering with EXIM Bank to export natural products of SHGs. • MFI Activities Direct SHG loans with the funds of ADFT NABARD • Housing Loan Funds from NHB implemented in 5 Districts in Tamilnadu. 5 7/17/2015 www.repcobank.com Housing Micro Finance Scheme REPCO BANK PURPOSE • New Construction / outright purchase of house • Renovation / repairs / additions. ELIGIBILITY • Active member in the SHG linked with the Bank. • Track record of the previous loan repayment. 6 7/17/2015 www.repcobank.com Housing Micro Finance Scheme REPCO BANK Quantum Of Loan: • Upto 2 lakh Moratorium Period: • 1 Year Repayment Period: • Upto 84 months Rate Of Interest: • Loans upto Rs.25,000/• Loans above Rs.2,00,000/- 11.5% 12% 7 7/17/2015 www.repcobank.com AREA OF OPERATION REPCO BANK Five Districts in Tamilnadu: • Sivagangai • Pudukkottai • Nilgris • Coimbatore • Trichy 8 7/17/2015 www.repcobank.com BENEFITS OF THE SCHEME REPCO BANK Provides shelter to the poor downtrodden. Gives opportunity for the unorganized labourers to own houses. To benefit Women Self Help Group members to renovate their houses. Shelter loan improves sustainability and the relationship among their members. 9 7/17/2015 www.repcobank.com Issues, Reasons & Solutions on Implementation on the Scheme REPCO BANK ISSUES REASONS Property Many own title possession rights Availability. but not ownerships. Income Proof Unorganized Labourers. Applicants working in their own firm. SOLUTIONS The Ownerships / Possession rights of the property are established through, Patta Book issued. House Tax Receipt. Electricity Bills. Wills by the Parents / Husbands. Income is assessed based on the prevailing wages paid in that area. Agri Income assessed in respect of lands cultivated. 10 7/17/2015 www.repcobank.com Contd… REPCO BANK House estimates Civil Engineers / / expenditure Contractors are budget present rarely. Repayment Schedule There is no proof of Salary. Hence arriving of installment is difficult. For loans up to 25000/- list of expenditures projected by the borrowers is accepted. Estimates from Civil Engineers/contractors are accepted for higher limits. Foundation Staff are assessing income of the applicant based on the local enquires and decide installment period suitably. Fixed between 36-84 Months. 11 7/17/2015 www.repcobank.com Contd… REPCO BANK Delay in House Unavailability of Construction Building materials like Bricks. Close follow up and personal contact leads to proper utilization of loans and early construction of house as planned. Margin above 15% of the project cost. It is insisted to initiate the construction with their margin of 15% before release of first installments of the loan. There is initial delay in contributing the margin. 12 7/17/2015 www.repcobank.com Contd… REPCO BANK Abandoning of Parties are losing Close follow up and House interest or unable persuading the borrowers Construction in the to bring in their to commence the house middle. margin. construction. Leaving the Releasing the loan in 2 or construction in the 3 stages helps to follow up middle. the utilization of loan and completion of the house Construction. 13 7/17/2015 www.repcobank.com REPCO BANK 14 7/17/2015 www.repcobank.com