Micro–Credit

Our Micro-Credit Program

Though PANCHYAJANYA is engaged in different social activities from the day of its inception but it started its Micro-Finance activities from the year 2009. And surprisingly the crisis in micro-finance started in October 2010. 

SHG & Micro Credit:

The SHG are necessary to overcome exploitation, create confidence for the economic self-reliance of rural poor particularly in women who are mostly invisible in the social structure. These women of the poor families have all the obligation in their families, but have no right, no security. The groups enable them to come together for a common objectives and gain strength from each other to deal with exploitation which they face in several forms. A group become the basis for action and change. It also helps building relationship of mutual trust and confidence between the promoting organization and the rural people through constant contact and genuine efforts.

we initiated micro-credit programme particularly for the rural women. Within the short span,this programme has enhanced confidence among the members. The most important activity today of our organisation has been expanding very immensely day by day.

SHGs have related the individuals or group members in a variety ways including credit facility, through peer pressure exercise by the groups, each member could be made to feel keenly, individually and severally responsible for using and returning credit available to them through us.

This is an achievement of about 100% regular repayment by the group members. A minimum interest is charged on the loan and default in repayment of loan will mean denial of any further loan to the group. It is made compulsory for the group members to attend group meeting regularly and follow the repayment schedule. SHG formation including creating awareness of importance of micro-credit within the community.

 Methodology:

PANCHYAJANYA follows the globally accepted Micro-Credit methodology – The considered low cost sustainable model. Panchyajanya’s low cost methodology gains further relevance in the economical environment that the micro-finance sector is operating in India. The uniqueness of the methodology are :

• Flexibility of group formation / no bindings on group guarantee.
• Simple and transparent system.
• Low cost management.
• Standardization.
• Delegation of authority in the field level.
• Innovative staff recruitment and on-the-job (each one teach one) training.
• Simple and shorter loan processing, less waiting time for the borrower.
• Written manual.
• Strong monitoring and supervision.
• Standard and low cost structure on furniture, fixture and overall management cost.
• While the sanction of loan is to individuals who are a part of a group, the collection are through group meetings.

Member Selection:

Being poor was not the deciding factor which decided membership of PANCHYAJANYA. Initial screening was done with a motive to ascertain the number of people who dreamt to improve their social and economic condition. We believes in self sufficiency and self sustainity so we tried to turn our member such so that they would never depend on us in coming days. Some of the important benchmark settled by PANCHYAJANYA as member eligibility criteria are :

• Age must be 18 to 53 Years.
• Family Income must not exceed Rs. 1,00,000.00 p.a in rural area     & Rs. 1,60,000.00 p.a in non-rural area.
• Is either already engaged in gainful micro-enterprise or plans to start one.
• Dreams to improve her socio economic condition.
• Passionate about breaking the shell of poverty.