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ESAF Microfinance

ESAF Microfinance helps poor communities to establish small businesses in the society. The beneficiaries include fishermen, artisans, farmers, small entrepreneurs, deprived communities etc.

India is severely underbanked contributing to lack of access to formal credit, this becomes difficult even for a salaried or self-employed professional. Imagine, how would a poor un-employed individual get a loan amidst enormous banking formalities? A large segment of people who live under poverty find it hard to get finance from established lending institutions. As the country aim for an inclusive growth at all sectors, the provision of micro credit is certainly a powerful tool that will bring financial inclusion.

Advantages and Features of ESAF Microfinance

Some of the advantages are as follows

  • Aimed at empowering poor women and their livelihood
  • To improve the living conditions of the marginalised people
  • Aimed at empowering poor women and their livelihood
  • Loan for low-cost house building

ESAF Microfinance Products and Services

ESAF Microfinance provides to poor men and women the following products and services.

1. Income Generation Loan

Loan Size: 2 Lakhs

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

2. General Loan: for general consumption

Loan Size: 2 Lakhs

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

3. Nirmal Loan: for building latrine cum toilets

Loan Size: 4000-12000

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

4. Jeevandhara Loan: For Water connection

Loan Size: 2000-12000 Loan Amount

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

5. Agriculture Loan: Assist Farmers in crop cultivation

Loan Size: 45000

Rate of Interest: 24.92%

Mode of Repayment: Repayment at the end of the loan

6. Vidyajyothi Loan: for the educational purpose

Loan Size: Above 50000

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

7. Suryajyothi Loan: for promoting solar lamps

Loan Size: 1000-10000

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

8. Grihajyothi Loan: for cooking stoves

Loan Size: 10000

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

9. Mobile Loan: for customers to purchase mobile phones

Loan Size: Rs 2000- Rs 15000

Rate of Interest: 24.92%

Mode of Repayment: Fortnightly/Monthly/Weekly

10. Housing Loan

Loan Size: Above 50000 to 2 Lakhs

Rate of Interest: 23%

Mode of Repayment: Monthly

ESAF Microfinance Location

To apply for a loan with ESAF Microfinance, you can contact them at their branches or the head office located in Thrissur.

Corporate Office Address

Hepzibah Complex

Mannuthy P.O

Thrissur

Kerala 680651

India

Registered Office

No, 8/9, Mansuk Buildings,

Flat No 3A, 3rd Floor,

Gangadeeswara Koil Street,

Purusawalkam,

Chennai,

Tamil Nadu 600 084

You can also reach them out to register your feedback, complaint, grievance or query at infor(at)esafmicrofin(dot)com.

Grievance Redressal Mechanism at ESAF Microfinance

ESAF Microfinance aims to provide resolution to their customers in a fair and timely manner. At first, the customers can fill up the complaint form and submit at the branches of ESAF Microfinance.

Your grievance will be redressed in a short period of time. However, if not redressed, you can escalate with the Grievance Nodal Officer.

Your grievance will be redressed in a short period of time. However, if not redressed, you can escalate with the Grievance Nodal Officer.

What Is Microfinance?

Microfinance is a type of banking service that is provided to unemployed or low-income individuals or groups especially people who have no access to credit in the formal banking system. Microfinance is an alternative to banks for people who live in remote villages of the country. The goal of micro credit companies is to provide a financial opportunity to poor people to become self-supportive and to those who did not have to avail formal credit. While microfinance is concentrated in the rural regions, it is also prevalent in urban poor, who have continued to be a segment that has been neglected by the organized form of banking.

Microfinance, an Alternative to Banks

Though India is experiencing a rapid growth at all sectors, there are still a certain percentage of people who are not covered by the formal banking system. Firstly, most of these people do not have a bank account and getting a loan from bank is even more a tough task.

Banks demand a steady source of income, worthy collateral, credit score etc. to provide a loan. People who have none of these have no chance of availing a credit to become self-supportive. More importantly banks require authenticated documents like ID proof, address proof, PAN, Aadhar card, proof of continuous employment which is not easily available with the segment that does not have much or any of the above documents required. These documents form the bulk of the qualifying criteria, which if an applicant does not meet will be rejected for a loan. Microfinance in India is addressing this need of the people.

Microfinance, identifying, small entrepreneurs come forward to uplift their lives by providing micro credit within their repayment capacity. The Microfinance companies conduct camps at remote villages and some urban pockets and offer financial assistance.

Who Are the Beneficiaries of Microfinance?

The established lending institutions generally cover salaried or self-employed professionals who have a steady source of income or work in an organised sector. Microfinance benefits the people who are involved in profession such as fishery, artisans, constructions works, vendors, small entrepreneurs etc. These individuals generally work in unorganised sectors and live in remote villages or slums in urban areas.

How Does Microfinance Help?

Economically weaker section of people get access to micro credit to enhance their lifestyle in several ways. With varied products from the Microfinance companies, the borrowers can use the funding for start a small business, build a low-cost house, get sanitation facilities etc.

Microfinance companies generally work through self-help groups in the rural and urban localities to provide the financial assistance to economically deprived people.

How Can Indians With No Credit History Get Loans and Credit Cards?

Our country can boast of a vibrant economy only when all segment of people can get access to credit. This is the only way to achieve an inclusive growth. CreditMantri, helps individuals who are otherwise unable to get credit in any form through formal banking system. The first-time borrowers who do not have a credit score or collateral can use CreditMantri platform to explore lenders who are willing to lend to them based on other criteria.

CreditMantri works with multiple lenders which include leading banks and NBFCs to also develop special products like small ticket loans which are able to provide such applicants a loan even with no credit score, a bad credit rating and with negative issues.

About ESAF Microfinance

Started in 1992, ESAF Microfinance is one of the popular microfinance companies in India. ESAF was established with the aim of helping the poor people financially to become self-sufficient. The organisation was initiated by the Nobel Peace Laureate Prof. Muhammad Yunus and inspired by the success of Grameen Bank.

Frequently Asked Questions About ESAF Microfinance

1. Who can avail credit from ESAF Microfinance?

People who are not covered by formal banking system, living in urban slums or remote villages can avail micro credit from ESAF Microfinance.

2. For what purposes the micro credit is offered by ESAF Microfinance?

ESAF Microfinance is provided for the purpose of micro business units, low-cost house building, construction of toilets, setting up irrigation system, student finance and generating income for widows, single mothers, unmarried women, person with disability etc.

3. What is the maximum amount of loan you can get under ESAF Microfinance?

The loan amount is disbursed as per the scheme and repaying capacity of the borrower. ESAF microfinance provides loan amounts up to 2 Lakhs for some specialized loans.

4. Does ESAF provide micro credit only for women borrowers?

No, the micro credit is provided for men, women and third gender, especially for individuals who have no access to financial help through formal banking system.

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