Organised as HELP Microfin Foundation, our core business is providing small loans exclusively to our members located in rural and semi-urban areas in Hyderabad & Rangareddy, West Godavari, Srikakulam and Vijayanagaram Districts of Andhra Pradesh, India (all below poverty line members, having a monthly household income of less than Rs 3,000/- and mostly belonging to the backward classes), essentially for use in their small household businesses or other income generating activities. These individuals often have no, or very limited, access to loans from other sources other than private money lenders that typically charge very high rates of interest.
We utilize a locality centered lending model to provide these unsecured loans to our members. This model ensures credit discipline through mutual support and peer pressure within the group and individual members are prudent in conducting their financial affairs and are prompt in repaying their loans. Failure by an individual member to make timely loan repayments will prevent other group members from being able to borrow in the future; therefore the group will typically make the payment on behalf of a defaulting member or, in the case of willful default, will use peer pressure to encourage the delinquent member to make timely payments, effectively providing an informal joint guarantee on the member's loan.
SOCIAL IMPACT
By utilizing our funds as additional working capital for their small businesses and for investments in additional income generating activities, our members are able to increase their business activity and generate additional household income.
Improved economic conditions of the household shall result in secondary economic and social benefits as well.
a) Our Women members generally tend to direct additional income toward better nutrition, education and healthcare for the family.
b) They are able to send their children to school for longer periods and make greater investments in their children's education.
c) Increased earnings can lead to better nutrition, living conditions, and a lower incidence of illness.
For women, money management, greater control over resources, and access to knowledge can lead to more choices and potentially a voice in family and community matters. Economic empowerment is accompanied by increases in self-esteem, self-confidence, and new opportunities.
| No. of Active Members | 12,160 |
| No. of Active Loans | 6,507 |
| Cumulative Loans Disbursed (in Rs) | 3,35,70,000 |
| Current Loan Outstanding (in Rs) | 2,73,23,000 |
| No. Of Branches | 3 |
Note: These performance highlights are as on 31st March 2011
