Loans to SHGs / JLGs through BCs

Self Help Group is a homogeneous group of 10-20 micro entrepreneurs (individuals) with affinity among themselves, voluntarily formed to save whatever amount they can conveniently save out of their earnings and mutually agree to contribute to a common fund of the group. The group does internal lending to its members for meeting their productive and emergent credit needs.
SHG lending further opens up the scope for lending in unbanked areas. For SHG lending, the Bank partners with Self Help Promoting Institutions (SHPIs)/NGOs, which are already engaged in SHG promotion & livelihood development. These SHPI/NGOs act as our business correspondent/business facilitator to offer SHG loans. These loans create positive impact at the bottom of the pyramid and lead to their financial and social empowerment.

In Retail Microfinance, we are partnered with NBFCs in order to facilitate the people in the base of pyramid and the under banked/unbanked population through affordable financial services. These institutions operate in this segment of society and over the years this model has proven its effectiveness in reaching to this segment in a commercially viable manner. There are certain organizations which are working with us as our Business Correspondents in various geographies over years and are able to maintain a satisfactory portfolio size with limited impairment.