Grameen Koota Financial Services Microfinance

Grameen Koota Financial Services

Getting access to credit, sometimes, 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.

Having visualised financial inclusion is the only way for development, Grameen Koota Financial Services helps poor communities to establish small businesses in the society. The beneficiaries include fishermen, artisans, farmers, small entrepreneurs, deprived communities etc.

Advantages and Features of Grameen Koota Financial Services

• Aimed at empowering women with poor access to credit
• To improve the standard of living of the above category
• To fund the small and micro business entrepreneurs
• To help individuals get a place of shelter through low cost housing

Grameen Koota Financial Services Products and Services

Grameen Koota Financial Services provides to poor women the following products and services.

Income Generation Loans

Grameen Koota’s Income Generation Loan support business enterprises and income enhancement activities of the clients like purchasing fixed assets to installing additional machinery etc. These loans also meet the additional working capital requirements of the client’s businesses. The Maximum loan amount the customer can avail is Rs. 50,000/- at an interest rate of 21% per annum on declining balance for first IGL loan, 19% per annum on declining balance for second IGL loan and 19% per annum on declining balance for supplement IGL loan. The tenure ranges from minimum of 52 weeks to maximum of 104 weeks depending on the loan amount.

Home Improvement Loans

Grameen Koota offers its clients with home improvement loans to help them avail water connection loans and to construct toilets, besides improvement and extension of their existing houses, i.e. repair or replacing a roof, wall floor or door, mansoon proofing, adding a room or kitchen etc. The rate of interest is 18% per annum on declining balance. With the loan amount ranging from Rs. 5,000/- up to Rs. 50,000/- under Home Improvement Loan depending upon the purpose for a tenure of minimum 52 weeks to maximum of 208 weeks depending on the loan amount.

Emergency Loans

Grameen Koota offers short term emergency loan to its clients to help them address emergencies and short-term cash flow constraints. This timely financial assistance refrains the members from resorting to other informal sources of money, which are very expensive. Any individual can apply for a loan amount loans up to Rs. 1000/- to help them deal better with sudden crisis situations at a rate of interest of 18% per annum on declining balance with maximum tenure of 3 months.

Family Welfare Loans

Family Welfare Loan supports all those activities of our clients to improve their quality of life and they include loans for fulfilling genuine consumption needs, such as purchasing cook stoves, LPG connections, bicycles, water purifiers and solar lights, meet education requirements of our clients’ children, to cover medical expenses and to cater specific needs that arise during festivals. Family welfare loans are offered at a rate of interest of 18% per annum on declining balance for loan amounts ranging from Rs. 1,000/- up to Rs. 15,000/- depending upon the purpose. The tenure for this loan ranges between 12 weeks to Maximum of 52 weeks depending on the loan amount.

Individual Retail Finance Loans

Started in 2016 Grameen Koota’s Retail Finance Loans are for those customers who have been in with them for more than 3 years. There are other criteria that will be considered including the credit rating or standing with Grameen Koota. This loan was formulated to help expand customers business or livelihood in any way possible. There are 3 types

Grameen Udyog Loan: This is the flagship product under our Individual Retail Finance Loan Products and is given to customers who require more credit in their individual capacity to expand an existing business;

Grameen Savaari Loan: This is given to customers to purchase a two-wheeler which will provide support for income generation activity; and

Grameen Suvidha Loan: This is a top-up loan given to customers to meet additional credit needs and is usually given for the upkeep of assets or inventory related to business. 

Eligibility Criteria for Grameen Koota Financial Services

Following are the eligibility criteria to get micro credit from Grameen Koota Financial Services

• Should be women between 18 to 55 years of age
• Should be a Permanent resident of a village or slum
• Should be a joint liability group

Grameen Koota Financial Services Location

To apply for a loan with Grameen Koota Financial Services, you can contact them at their branches or the head office located in Bangalore.

Head office Address

#49, 46th Cross, 8th Block, Jayanagar,

Bangalore - 560071

Phone: +91 80 22637300

You can also reach them out to register your feedback, complaint or query at info(at)grameenkoota(dot)org.

Grievance Redressal Mechanism at Grameen Koota Financial Services

Grameen Koota Financial Services aims to provide resolution to their customers in a fair and timely manner. All the passbooks are provided with the telephone number of branch managers in order to contact them for any query and complaints. Customers can also call the helpline number 1800-425-5654 for registering any complaint or grievances. Following steps can be followed in registering your compliant with the company.

Step 1: Complaint Register

Write to the following address as the first step in filing a complaint.

CreditAccess Grameen Limited (formerly known as Grameen Koota Financial Services Pvt. Ltd.)

No.49, 46th Cross, 8th Block, Jayanagr, Bangalore-560071

Email: yourvoice(at)grameenkoota(dot)org

Toll Free Number: 1800 425 0205

Step 2: Microfinance Information Network (MFIN)

If you are not satisfied with the resolution of the complaint, you can escalate the issue to Microfinance Information Network (MFIN) Toll Free number - 18002700317

Step 3: Reserve Bank of India

If the complaint / dispute is not redressed within a period of one month, you may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI as per contact details given below:

Officer-in-Charge

Reserve Bank of India (RBI)

Department of Non-banking Supervision (DNBS)10/3/8,

Nrupathanga Road,

Bangalore-560001

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 Grameen Koota Financial Services

CreditAccess Grameen Limited (formerly known as Grameen Koota Financial Services Pvt. Ltd.) is based out of Bangalore. It is part of the NGO T. Muniswamappa Trust, which in 2007, was transferred from NGO to a well-regulated and registered Non-Banking Financial Company (NBFC), which subsequently got reclassified into a regulated and governed Non-Banking Financial Company - Micro Finance Institutions (NBFC-MFI) entity by Reserve Bank of India (RBI) in 2013.

Frequently Asked Questions About Grameen Koota Financial Services

1. Who can avail credit from Grameen Koota Financial Services?

People who are not covered by formal banking system, living in urban slums or remote villages can avail micro credit from Grameen Koota Financial Services.

2. For what purposes the micro credit is offered by Grameen Koota Financial Services?

Grameen Koota Financial Services is provided for the purpose of micro business units, low-cost house building and family welfare.

3. What is maximum amount of loan you can get under Grameen Koota Financial Services?

The loan amount is disbursed as per the scheme and repaying capacity of the borrower.

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

Yes, the micro credit is provided only for women as they have less chance of availing financial assistance from established financial institutions.

3. Are there insurance benefits for availing Grameen Koota Financial Services?

Yes, you can get insurance benefits as long as you repay the loan amount.