NBFC means a non-banking financial company that performs functions similar to banks in the absence of banks in rural areas. MFI means for microfinance institutions which operate at a further smaller level than NBFC. MFI provides very small loans to the underprivileged sections of society.
Chaitanya shall meet the requirement of those customers by extending an individual loans, as the group lending model does not work effectively beyond a certain loan amount. Chaitanya shall build a seamless experience in giving individual loans to graduating JLG customers.
JLG is a group of 4-10 small farmers, rural entrepreneurs, people of the same village/locality having the same socioeconomic background. The JLG is formed with the purpose of availing loan from a microfinance company without any collateral.
A Joint Liability Group (JLG) is an informal group comprising of 4-10 individuals coming together for the purpose of availing bank loan on individual basis or through group mechanism against mutual guarantee. Generally, the members of a JLG would engage in a similar type of economic activity.
The group-lending model of microfinance is a development intervention in which small-scale credit for income-generation activities is provided to groups of individuals especially women, who do not have material collateral.
Located at Bengaluru, in our time as a micro finance company, we silently went about enabling livelihoods and elevating lives.