March 4, 2017

About Loan

MSDO Finance provides loans to women members in poor rural regions of Manipur for a range of income-generating activities with the objective of eliminating poverty. We serve thousands of poor women across the villages in Manipur.

MSDO Finance uses the group lending model where poor women guarantee each other’s loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. Fortnightly meetings with borrowers follow a highly disciplined approach and timely schedule. Re-payment rates on our collateral-free loans are more than 99% because of this systematic process.

Our Services

MSDO Finance provides a range of financial products and services covering micro credit, insurance and financial literacy. Products are gradually developed to enable families to generate income and to help them become self reliant.

Products

MSDO Finance presently offers two Income Generation Loan (IGL) products and one Mid-Term Loan (MTL) product whose details are provided below:

Product

DESCRIPTION

Loan size
Income Generation Loans (IGL)IGLs are provided to women for approved income generating activities. Loans are repaid in 25 fortnightly instalments. Interest rate charged is 24% on a reducing balance basis. Processing fees of 1% on the loan amount is charged at the time of disbursements.First cycle: Maximum Rs 15,000 Subsequent cycles: Maximum Rs 50,000
Income Generation Loans (IGL) – RMK loansLoans are repaid in 25 fortnightly instalments. Interest rate charged is 18% on a reducing balance basis. Processing fees of 1% on the loan amount is charged at the time of disbursements.First cycle: Maximum Rs 15,000 Subsequent cycles: Maximum Rs 50,000
Mid-Term Loans (MTL)Mid-Term Loans (MTL) are provided to the clients after they complete 12 fortnightly instalments. Loans are repaid in 25 fortnightly instalments. Interest rate charged is 24% on a reducing basis. Processing fees of 1% on the loan amount is charged at the time of disbursements.First cycle: Maximum Rs 5,000 Subsequent cycles: Maximum Rs 10,000

Insurance Services

MSDO Finance introduced life insurance for its customers and for their spouses. In the unfortunate event of natural or accidental death of the customer or spouse, the insurance amount helps the nominee/beneficiary cover the existing loan as well as receive the benefits of a life cover.

MSDO Financehave partnered with IDBI Federali to facilitate life insurance services. It covers life risk for husband and wife up to loan amount at 1% of the loan amount premium for one year.
Upon the occurrence of death, the outstanding of the loan is adjusted against the insurance claim and the balance amount is paid to the survivor.
Financial literacy
MSDO Finance together with a partner “Friends of Women World Banking in India” (FWWB) conducted financial literacy awareness campaign with borrowers. Financial literacy fulfils MSDO People to People India’s mandate to bring the rural poor women to the forefront of financial products and services. It allows our members to combine the financial products with the basic management skills to optimally utilize those products to enhance their income.
 
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