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ESAF Small Finance Bank-ESAF SFB helps in transforming lives in Chattisgarh Posted On 21st October, 2019 : Posted By VISHAL MEDIA
ESAF Small Finance Bank-ESAF SFB helps in transforming lives in Chattisgarh
Aids aspiring women entrepreneurs to be financially independent
Raipur, 21st October 2019 : Mrs. Kuntibai Viswakarma belongs to Kusrupali, dist Mahasamund a small village in Chattisgarh. Her story of determination and struggle from a dependent individual to an entrepreneur is quite exemplary.
Similar to the other residents of the village, Kuntibai’s family was succumbing under the pressure of poverty. Without much income contribution from her husband and with two growing adolescent boys, the family’s expenses were getting unmanageable. Her life took a complete turn when she became a member of ESAF SFB in 2007 from where she took upto 18 cycles of loans gradually increasing in value. She not only repaid the loans on time with consistent earnings but also helped 18 other families in identifying an income source.
ESAF SFB’s initial loan offering of Rs. 4000 kick-started Kuntibai’s business as a local vegetable seller and generated her daily income of around Rs. 400-500.The growing expenses of a family of 4 got her thinking big. So, after successfully repaying her 1st loan,she took a 2ndloan of Rs. 8000 to buy a two-wheeler in order to spread her business further and thus was able to increase her family’s daily income considerably. During 2009-12, she took another loan to rent a shop where she sold other essentials along with vegetables. She further bought a second-hand auto-rickshaw to offer mobile grocery services.Working in a systematic manner gave a boost to Kuntibai’s ambitions to start a new business of tea packaging and candle making at a large scale where she employed 7 women who we repaid daily wages. To expand the delivery services of her products, she took yet another loan to buy a Maruti Omni.Later in 2015, Kuntibai took a loan for borewell connection & toilet facility at her house.
Her slow and systematic progress along with timely re- payment of her dues made her eligible for loans of a higher value and also reflected well on her credit ratings. Through the support of ESAF SFB she was also able to purchase sewing machines and employed 4 women for stitching on daily wages including a sales person.
Kuntibai acclaims that with all these loans from ESAFSFB, her family’s income grew considerably and as a result her income became sustainable to an extent that they were able to provide employment to other people who were struggling for financial stability.
ESAF Small Finance Bank formerly known as ESAF Microfinance is an Indian small finance bank providing banking services and small loans to the underbanked.Before becoming a bank, ESAF was a NBFC-MFI, licensed by the RBI and headquartered in Thrissur city of Kerala.
Last year, ESAF was the first bank from India to become a member of the GABV- Global Alliance for Banking on Values, a network of sustainable banks including credit unions, community banks and microfinance banks around the world, who work towards the goal of touching one billion lives by 2020 through sustainable banking. So far, ESAF has brought approximately over 30 lakh women into the financial inclusion space across 15 states in India.
The Indian microfinance sector has come a long way. Early estimates show that the industry/ sector would have closed Mar'19 with a credit portfolio outstanding of nearly Rs 2,00,000 crore serving over 50 million end clients (of which 99% plus are women and for most of whom this would be the first credit facility in their life) across 30 states through an employee strength of over 1 Lakh. For an industry almost written off in mid-2011 after the Andhra Pradesh (AP) crisis, this is no mean feat indeed.
NBFC-MFIs are the only regulated financial institutions in the country which give unsecured loans to the borrowers from low income households. These institutions fill an unfunded credit gap for women who do not have the wherewithal to provide collateral or security of any sort. The aim of NBFC-MFIs is to build sustainable livelihoods. Through providing last mile financial services even to clients in remote rural areas, these institutions promote the Government’s financial inclusion agenda.
NBFC-MFIs are an important partner for Prime Minister MUDRA Yojana and almost 50% of the loan disbursements under this programme have been done through microfinance companies. NBFC MFIs are registered with the Reserve Bank of India and are stringently regulated right from the size of loan, the tenure, the rate of interest and a Fair Practices Code (FPC) and an Industry Code of Conduct (CoC) which governs their functioning. The Reserve Bank conducts regular supervision of all NBFC MFIs.
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