REPCO FOUNDATION FOR MICRO CREDIT MICRO HOUSING SCHEME Presentation by M. Balasubramanian Chairman.

Repco Foundation – An Overview 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.

Role Play 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 : Doorstep banking services to remote service villages. Smart Card : Transparent cash collection at service nearest locations.

Role Play contd.. Business Facilitator For Repco Bank – all branches in Tamil Nadu. For IOB – branches at Thiruvarur District Business Correspondent For IOB – branches at Thiruvallur Districts

OTHER SERVICES Insurance – Providing Insurance through LIC Janashree Bima Yojana Scheme. Pension Pension scheme UTI MF Scheme 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.

Housing Micro Finance Scheme 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.

Housing Micro Finance Scheme Quantum Of Loan: Upto 2 lakh Moratorium Period: 1 Year Repayment Period: Upto 84 months Rate Of Interest: Loans upto Rs.25,000/- 11.5% Loans above Rs.2,00,000/- 12%

AREA OF OPERATION Five Districts in Tamilnadu: Sivagangai Pudukkottai Nilgris Coimbatore Trichy

BENEFITS OF THE SCHEME 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.

Issues, Reasons & Solutions on Implementation on the Scheme Property title Availability. Many own possession rights but not ownerships. The Ownerships / Possession rights of the property are established through, Patta Book issued. House Tax Receipt. Electricity Bills. Wills by the Parents / Husbands. Income Proof Unorganized Labourers. Applicants working in their own firm. Income is assessed based on the prevailing wages paid in that area. Agri Income assessed in respect of lands cultivated.

Contd… House estimates / expenditure budget Civil Engineers / Contractors are present rarely. For loans up to 25000/- list of expenditures projected by the borrowers is accepted. Estimates from Civil Engineers/contractors are accepted for higher limits. Repayment Schedule There is no proof of Salary. Hence arriving of installment is difficult. Foundation Staff are assessing income of the applicant based on the local enquires and decide installment period suitably. Fixed between 36-84 Months.

Contd… Delay in House Construction Unavailability of 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. There is initial delay in contributing the margin. It is insisted to initiate the construction with their margin of 15% before release of first installments of the loan.

Contd… Abandoning of House Construction in the middle. Parties are losing interest or unable to bring in their margin. Leaving the construction in the middle. Close follow up and persuading the borrowers to commence the house construction. Releasing the loan in 2 or 3 stages helps to follow up the utilization of loan and completion of the house Construction.

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