Impact through strict adherence to Principles of Code Of Conduct
Social Impact
Poverty Reduction & Livelihood Creation
Our loan products have enabled many borrowers to retire old debts and repat expensive loans from moneylenders. We have helped SHG members to create new income generation opportunities and create assets such as gold, improve existing assets like houses, or even replace low-yielding cows with crossbred cows. Diversification of livelihoods and new sources of income decreases vulnerability to bad loans.
Enterprise Expansion & Economic Diversification
Many borrowers have used our loans to start new enterprises such as purchasing crossbred cows, or expand existing businesses, like dairy distribution. The regular income generated helps them repay fixed loan instalments. For households deeply in debt, our loans have helped reduce vulnerability and release pledged assets from money lenders.
Future Loan Utilization and Planning
We work with our SHG & JLG members to plan better use of future loans for new income generation and enterprise activities as well as to maximum profitability. With a good repayment performance, repeat we assure our members of repeat loans of increasingly larger amounts, enabling groups to plan future business investments confidently.
Changes in Practices of Other Credit Providers
Traditionally, households depended on money lenders, friends, and relatives for larger loans. However, many now claim they no longer borrow from money lenders as our group loans meet their needs. In peri-urban areas, money lenders have reduced their interest rates from 10% to 5% per month due to the competition from our loans, which has led to better treatment of borrowers by money lenders.
Impact on Banking Practices
Banks were previously beyond the reach of many rural households, but our loan d lending policies have created changes in bank practices for the rural poor. Bank staff are more willing to interact with SHGs and are now offering them increased loan sizes and reduced transaction times. We also address issues such as harassment from banks or threats of losing subsidized loans, bringing them to the notice of bank officials.
Empowerment of Rural Women
The availability of SM loans has increased the bargaining power of groups, especially regarding loan sizes and transaction times. Peri-urban women, who previously depended on their husbands' income, have utilized SM loans for self-employment opportunities. This has resulted in higher income, poverty reduction, reduced vulnerability to money lenders, and enhanced self-esteem.
Economic Empowerment Through Our Loans
Our affordable loan schemes have improved the bargaining power of groups with banks, especially regarding loan sizes and transaction times. Peri-urban women, who previously depended on their husbands' income, have utilized our loans for self-employment, providing higher income, poverty reduction, reduced vulnerability to money lenders, and enhanced self-esteem.
Customer Satisfaction
Client satisfaction with Sanghamithra is high, with a strong repeat customer base in peri-urban and rural areas. Clients appreciate several aspects of our services such as:
- Doorstep Credit Delivery: Credit officers visit groups for assessment, loan disbursement, and cheque collection.
- Quick Loan Sanction: Loans are sanctioned within a week to ten days.
- Transparent Loan Negotiation: Loan amount negotiation is transparent.
- Capacity Building: The rating mechanism helps groups identify areas for improvement.
- No Collateral Required: We do not require collaterals.