IIBS Bangalore PGDM Batch on 1st December, 2018 Finance students along with Prof. Samiya Mubeen had been to meet below poverty line people to spread awareness on MicroFinance products and services. For this one nearby village Hunasooru was being selected by us, where Dr. Prakash also joined us in this awareness camp at Hunasooru. We, students, have had a conversation with more than 30 households and most of the women of the households are associated with Shree Shakti. Shree Shakti is the one of the Self Help Group.
Self Help Group is having more than 20 years and has bank accounts in Kaveri Grameen Bank. The income level of these households varies within the range of Rs.10,000- Rs.20,000 p.m. and are mostly into horticulture, Sericulture (silk making business), agriculture and milk production business and when the need of money arises, they prefer taking loan and advances from their friends and relatives and the ladies of the house being a part of SHG takes it from the SHGs.
There are more than 6 SHGs in the village. When a loan is granted or given to any of the members of the SHG, the tenure is fixed for 12 months and then fails to pay the instalment of the loan amount after 12 months, the interest rate of 3-5% is charged on a day basis. Further, if the non-payment of loan continues, the members of the group approach the loan taker and negotiations takes place for rescheduling the tenure of payment. We, students, for more information approached the Kaveri Grameen Bank.