Savings

Members are able to make monthly savings contributions at the thrift meetings held in the village every month. They can contribute from as less as Rs30 per month into their savings account. Thrift cadres are employed by the Cooperatives for collection in the villages. Members receive between 6-8% interests on their savings but are not able to access this until they choose to leave the Cooperative.

Loans

A number of processes occur to generate a loan to a member. The member must state her wish to apply for a loan at the sangha meeting, (a gathering held by the leaders of the groups the night before the thrift meeting). For each member who applies for a loan of Rs. 2,000, four more members need to stand as guarantors. The guarantors ensure against defaults in repaying the loan. It is also the responsibility of the guarantors to counsel the member in the case of loan repayment difficulties and if necessary, raise these issues at the thrift meeting held at the village level.

For members requesting loans in excess of Rs 2,000, attending a loan counselling meeting is mandatory. These loan counselling meetings are held twice a month, during which the member completes the relevant paperwork, participates in a loan counselling session with the mandal Directors and Leaders, and collect the loan amount. She is required to repay the loan within a scheduled timeframe based on the loan amount. Members pay 12% interest per annum on each loan they take.