BSS Microfinance Limited is a microfinance company that currently acts as a ‘Business Correspondent’ of Kotak Mahindra Bank Limited but initially was carrying out operations as a Trust which was set up in 1999. In April 2008, the company took over the microfinance activities from the Trust and since then, it has been extending microloans to women from the economically challenged sections of the society. These loans will aid poor women in carrying out income generating activities resulting in the improvement of their social conditions. At present, BSS Microfinance is operational in four states, namely, Maharashtra, Tamil Nadu, Karnataka, and Madhya Pradesh.
BSS Microfinance has a mission of alleviating poverty by offering micro-finance services to women, which consequently will be passed on to their families. The company also aims to facilitate improved earnings, enhanced quality of life, and better management of finances.
• Minimum loan amount – Rs.8,000
• Maximum loan amount – Rs.60,000 per borrower
Currently, BSS Microfinance lends only to women through the Group Lending Program. Under this, women with the below-given characteristics are eligible to avail the microloans:
Please note that only one member of the family can avail the microloans from BSS Microfinance.
Members can avail microloans of a minimum of Rs.8,000 and a maximum of Rs.60,000. The loan amount will be disbursed in Rs.1,000 multiples, depending on the eligibility of the borrower.
Members can apply for a micro loan from BSS Microfinance in the first center meeting itself when at least 70% of the center members are present. Borrowers who wish to avail BSS Microfinance loans should not have the total indebtedness exceeding Rs.1 lakh. This excludes any outstanding loans that were taken to meet education and medical expenses of the member’s family. Only borrowers in rural areas whose yearly household income is below Rs.1 lakh and Rs.1.6 lakh in urban and semi-urban areas can avail loans from BSS Microfinance. Borrowers who are members of more than one Joint Liability Group (JLG) or Self-Help Group (SHG) cannot avail a micro loan from BSS Microfinance. They are also not allowed to borrow from more than two NBFC-MFIs. The group or center members will initially approve the loan applications after which the credit bureau will verify the details. The loan application will be processed only after at least two KYC documents have been submitted. The loan approval process will involve at least two staff of BSS Microfinance and the credit committee of the firm should approve it. BSS Microfinance will approve micro loans for almost all types of income generating activities except tobacco business, alcohol business, and other socially prohibited activities.
The loan availed from BSS Microfinance will be disbursed in the field office where more than one person must be involved and on the disbursement day, at least 70% of the center members should be present. The disbursal of loan is the responsibility of the center/group who should have a good credit history. Post the disbursal of loan, clients must be given a copy of the loan agreement which includes the promissory note and loan repayment. Members will be given the loan passbook card after the loan has been disbursed and entries must be made in the passbook in the vernacular language.
The following features of micro loans from BSS Microfinance make it an attractive option for borrowers who wish to use these loans for income generating activities:
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