Transcript Document

REPCO FOUNDATION FOR
MICRO CREDIT
REPCO BANK
MICRO HOUSING SCHEME
Presentation by
M. Balasubramanian
Chairman.
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Repco Foundation – An Overview
REPCO BANK
• An NGO – Promoted by the Repco Bank
(A Govt. of India Enterprise).
• A Section 25 Company – Not for Profit.
• Extend supporting services to Self Help
Groups
• With a view to increase the income level and to
improve the standard of living.
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Role Play
REPCO BANK
• Group formation
:
Promoted about 10,000 SHGs.
• Capacity Building :
Trained about 70,000 members and
established more training centres.
• Bank Linkage
:
Facilitated 1,65,000 SHG families
with bank loan.
• Follow up &
monitoring
:
Maintained 100% recovery in all.
• Mobile bank
service
:
Doorstep banking services to remote
villages.
• Smart Card
• service
:
Transparent cash collection at
nearest locations.
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Role Play contd..
REPCO BANK
Business Facilitator
Business Correspondent
• For Repco Bank – all • For IOB – branches at
branches in Tamil
Thiruvallur Districts
Nadu.
• For IOB – branches at
Thiruvarur District
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OTHER SERVICES
REPCO BANK
• Insurance –
• Pension
Scheme
Providing Insurance through
LIC Janashree Bima Yojana Scheme.
Pension scheme UTI MF
implemented in Tamil Nadu.
• Marketing
Partnering with EXIM Bank to
export natural products of SHGs.
• MFI Activities Direct SHG loans with the funds
of ADFT NABARD
• Housing Loan Funds from NHB implemented
in 5 Districts in Tamilnadu.
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Housing Micro Finance Scheme
REPCO BANK
PURPOSE
• New Construction / outright purchase of house
• Renovation / repairs / additions.
ELIGIBILITY
• Active member in the SHG linked with the Bank.
• Track record of the previous loan repayment.
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Housing Micro Finance Scheme
REPCO BANK
Quantum Of Loan:
• Upto 2 lakh
Moratorium Period:
• 1 Year
Repayment Period:
• Upto 84 months
Rate Of Interest:
• Loans upto Rs.25,000/• Loans above Rs.2,00,000/-
11.5%
12%
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AREA OF OPERATION
REPCO BANK
Five Districts in Tamilnadu:
• Sivagangai
• Pudukkottai
• Nilgris
• Coimbatore
• Trichy
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BENEFITS OF THE SCHEME
REPCO BANK
Provides shelter to the poor downtrodden.
Gives opportunity for the unorganized
labourers to own houses.
To benefit Women Self Help Group
members to renovate their houses.
Shelter loan improves sustainability and
the relationship among their members.
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Issues, Reasons & Solutions on
Implementation on the Scheme
REPCO BANK
ISSUES
REASONS
Property
Many own
title
possession rights
Availability. but not
ownerships.
Income
Proof
Unorganized
Labourers.
 Applicants
working in their
own firm.

SOLUTIONS
The Ownerships / Possession
rights of the property are
established through,
 Patta Book issued.
 House Tax Receipt.
 Electricity Bills.
 Wills
by the Parents /
Husbands.
Income is assessed based on
the prevailing wages paid in
that area.
 Agri
Income assessed in
respect of lands cultivated.

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Contd…
REPCO BANK
House estimates Civil Engineers /
/ expenditure
Contractors are
budget
present rarely.
Repayment
Schedule
There is no proof
of Salary. Hence
arriving of
installment is
difficult.
For loans up to 25000/- list
of expenditures projected by
the borrowers is accepted.
 Estimates from Civil
Engineers/contractors are
accepted for higher limits.

Foundation Staff are
assessing income of the
applicant based on the local
enquires and decide
installment period suitably.
 Fixed between 36-84
Months.

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Contd…
REPCO BANK
Delay in House Unavailability of
Construction
Building
materials like
Bricks.
Close follow up and
personal contact leads to
proper utilization of
loans
and
early
construction of house as
planned.
Margin above
15% of the
project cost.
It is insisted to initiate
the construction with
their margin of 15%
before release of first
installments of the loan.
There is initial
delay in
contributing the
margin.
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Contd…
REPCO BANK
Abandoning of
 Parties are losing  Close
follow up and
House
interest or unable persuading the borrowers
Construction in the to bring in their
to commence the house
middle.
margin.
construction.
Leaving the
 Releasing the loan in 2 or
construction in the 3 stages helps to follow up
middle.
the utilization of loan and
completion of the house
Construction.

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REPCO BANK
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