Members need loans for a wide variety of purpose: to buy assets, raw materials, finished goods for resale, old debts, renovation of their homes, buy transportation means such as Pedal cart, handcart or put in infrastructure in their homes such as water or electric connections.
Sewa Bank has been providing a wide range of loan products to meet the productive credit needs of its clients. The bank requires that woman save regularly for at least one year before she is eligible to apply for a loan. In the absence of traditional collateral, a regular savings record has been a necessary from of security in Sewa Bank’s experience of banking with the poor for well over 38 years.
More than 30000 members got the facility of loan in the f.y. 2012-13.
My house is my asset, my saving, my workshop and my place to rest. Improved shelter increased productivity and security” said by member, she engaged in work of bidi rolling.
Financial Institutions have been reluctant to give women housing loans for women are still perceived as mere housewives who are high credit risks. Housing loans are not seen as productive loans which will lead to an increase in income.
Housing however is a productive asset for millions of women who are poor and work out of their homes and this access to housing finance at long term, affordable rates is a prime necessity. Moreover, among the poor those with assets are less vulnerable to the vagaries of life than those with out assets.More than 3000 members privileged the services of Housing Loan.
Sewa Bank has found that as the economic security of SEWA member’s increases, the demand for housing loans and housing related services also increases. Most importantly, and as a rule, loans for a new house require that the house be bought in the name of the women borrower, thereby creating an asset for the women.
Sewa Bank has given loans for housing purposed to thousands of women. These include loans to repair or replace a roof, wall, floor or door, for monsoon proofing, adding a room or kitchen, upgrading as well as loans that could be used as deposits for rent and to buy or build a new house. Loans were also taken for infrastructural facilities such as water or electricity connections, building toilets and paved approach roads to the house.
In india, majority of women own some jewellery and gold is seen as an investment- a form of insurance against bad times. Even the poorest of women own some jewellery, usually given to her at the time of her marriage. Sewa Bank has designed a secured loan product based on jewellery as collateral. This prevents them from going to money lenders who give bad rates and often reclaim the jewellery (selling it to a third party) before the loan due date. Up to 80% of the value of the jewellery is retained with Sewa Bank until loan is fully paid. Realizing the importance of gold as an investment.