Microfinance Operation
The aim and objectives of Parama are to promote micro-enterprise as a means of poverty
alleviation.
The organization wants to create a fund for capacity building of women by giving
financial support for their entrepreneurial endeavors and to make them economically
independent. By this independency women can undertake responsibilities of socio
economic development and can develop leadership in running worthwhile developmental
activities.
This micro finance will develop the knowledge of the banking system and confidence
to approach such institutions and will grow the habit of savings.
Savings Product
Once the six months are completed of group formation, Loans are mainly given for
agricultural and allied activities and for carrying out small trading activities;
the loan size is depending upon the internal savings done by the groups, with a
tenure ranging from six months to eighteen months.
Applied loan will be disbursed among the SHG members. Till date 880 no. of groups,
linked with different bank are financed by the existing limits of BGVB, State Bank
of India, Anulia and NABARD. Presently total group of Parama is 920.
Loan Product
Presently Parama is continuing their micro credit programme. They are working under
a vast micro credit programme with the applied financial assistance from any nationalized
Bank. They offer different type of loan product according to clients demand. The
duration of the loan product is 6 months or 12 months or 18 months . Loan size varied
from Rs.40,000/- to Rs.50,000/-.
In addition to SHG loans, the NGO-MFI has also started individual loans with a minimum
amount of Rs. 5,000 to the borrowers who are formed as five member group since 2008.
Nature of Lon Products :
Agriculture : 40%
Small Industry : 30%
Others : 30%
Interest & Processing Fees :
The rate of interest is 18% reducing, with a small processing fees of 0.30% on loan
amount and they keep a Security deposit of 10% on loan amount. April 1, 2009, it
has started to cover all of its borrowers under life cover through tie up with United
Insurance Company.
Expected Out-Reach and Impact
They can spent their extra income on the education and health of their child which
will bring a bright future for our society. Expected increase in average monthly
income is 15% to 20% and Expected increase in average monthly saving is 5% to 10%