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IDF Microfinance

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, IDF Microfinance 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 IDF Microfinance

  • Aimed at empowering poor women and their livelihood
  • To improve the living conditions of the marginalised people
  • To fund the small and micro business entrepreneurs
  • Insurance scheme for the poor
  • Loan for low-cost house building

IDF Microfinance Products and Services

IDF has been started by industry experts in micro credit to help different segments of individuals to get credit in small amounts, the following are their products

1. Interim Loan Product:

Interim loans are provided to customers to help Self Help Groups (SHG) with immediate requirements such as medical emergencies, education fees payment etc. Loan sizes vary between Rs.5000 to Rs.10000.

2. IDF-Pragathi

Once a business takes shape and the entrepreneur requires additional funds they can get it through the loan. The maximum loan amount is Rs. 1,50,000 where the repayment period is 24 to 36 months.

3. IDF- Ashraya a Micro Housing Loan

This loan is specially designed to help the rural populace build their own homes. This loan is given to members to build micro-homes for their dwelling. The maximum loan size is Rs.50,000 with repayment period of 48 to 60 months

4. Individual Loan Adbhudaya

This loan is for people who are no longer part of the member group but have previously been with IDF microfinance. To be eligible for this loan the individual must have promptly paid back the 1st and 2nd cycle loan as a member of mSHG. The maximum loan amount under this scheme that can be availed is Rs.60000 with repayment period of 24 to 36 months.

Apart from the above IDF is able to provide loans for setting up and expansion of micro companies/ enterprises and animal husbandry which are available at different interest rates in different states like Maharashtra and Karnataka

Eligibility Criteria for IDF Microfinance

Following are the eligibility criteria to get micro credit from IDF Microfinance

  • 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

IDF Microfinance Location

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

Head office Address

IDF FINANCIAL SERVICES PVT LTD

“GIRIJA”, 31/1, II Floor,

Patalamma Temple Street,

South End Circle, Basavanagudi

Bangalore -560004

You can also reach them out to register your feedback, complaint, grievance or query at idff.finance(at)gmail(dot)com / idff(dot)fin(at)gmail(dot)com

Grievance Redressal Mechanism at IDF Microfinance

IDF Microfinance 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 1800-102-5067 for registering any complaint or grievances. Following steps can be followed in registering your compliant with the company.

Step 1: Complaint Register

The customers can directly walk in to the branch office and register the complaint by filling up the complaint form available.

Step 2: Letter of Correspondence

Any complaints received are redressed within 15 days. If not resolved within the timeline mentioned, it can be escalated with the customer grievance cell. The nodal officer can be contacted either via mail or at the Nodal office at the following address.

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 IDF Microfinance

IDF Microfinance is a Non-Banking Financial Corporation (NBFC – MFI) based out of Bangalore. It operates across 2 states providing finance to 10,678 mSHG. Till date they have disbursed total value of loans amounting to Rs.4554.76 lakhs through 17,777 loans. There 38663 active borrowers managed by 114 credit officers.

Frequently Asked Questions About IDF Microfinance

1. Who can avail credit from IDF Microfinance?

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

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

IDF Microfinance is provided for the purpose of micro business units, low-cost house building, construction of toilets, setting up irrigation system, purchase of solar ware etc.

3. Are there insurance benefits for availing IDF Microfinance?

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

4. What is maximum amount of loan you can get under IDF Microfinance?

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

5. Does IDF Microfinance 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.

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