Chaitanya

Chaitanya's Target Clients 

Chaitanya’s clients are households with a annual household income of less than Rs. 2,00,000 in real 2000 terms. National Council of Applied Economic Research (NCAER), classifies these households as ‘Deprived’ with annual household income of less than Rs. 90,000 and ‘Aspirers’ with annual household income between Rs. 90,000 to Rs.1, 99,999. The deprived and aspirers formed ninety five percent of India’s population in 2005. A large number of these households do not have access to financial services. Opportunity for us exists as a large percentage of the ‘deprived’ households move into the ‘aspirers’ section as India grows. Between 2005 to 2015, the total percentage of deprived households is expected to shrink from fifty four percent to thirty five percent of all households in India.

Loans 

Business Loan

The Business Loan (BL) is Chaitanya’s first loan product. BL is available to all Chaitanya clients. BL is given to clients to invest in income generating activities.

Terms and Conditions of General Purpose Loan

Loan Details:

• Loan Size – Rs. 2,000 to Rs. 15000
• Net Effective Interest Rate(% per annum) – 28.21%
• Term – 26 By-weekly(once in 14 days) (1 year)
• Processing fee – 1% of loan amount
• Insurance Premium - 0.50% of loan amount

Women Clients: Loans are given to women clients only.

Age of Clients: Clients should be between the age of 20 to 55 years

Joint Liability Lending (JLG): Loans are given to women clients in groups. The members of each group cross guarantee the loans borrowed by the other members in the same group.

JLG Group Size: The size of the JLG group should be between four to six Members.

KYC Documentation: All clients have to provide copies of

• Identity proof (voter ID card, telephone bill, electricity bill) and
• Address proof(voter ID card, ration card, address proof given by panchayat or town municipality)

Loan Disbursement:  All loans are disbursed at Chaitanya branch office and clients have to be present for taking the loan at the branch.

Passbooks: A passbook will be issued to each client detailing the amount of loan, date of installment, principal and interest amounts payable till the completion of loan.