Cashpor Micro Credit

Cashpor Micro Credit is a subsidiary of CASHPOR Financial & Technical Services (CFTS). It is a poverty focused microfinance institution based out of Varanasi, identifying women below the poverty line in rural eastern Uttar Pradesh, Bihar and Chhattisgarh, and providing them with micro credit services for income generation. Cashpor Micro Credit is exempted from registration with the Reserve Bank of India and uses a dual lending model of direct lending and Lending under the banking correspondence model.

Cashpor Micro Credit offers the following types of loan products:

• Income Generating Loans
• Emergency Loans
• Bada Loans

General features of Cashpor Micro Credit Income Generating Loans

• In the first cycle, a newly joined member receives Rs 2,000 - Rs 8,000
• In the second cycle, a member receives Rs 2,000 - Rs 12,000
• In the third cycle, a member receives Rs 2,000 - Rs 14,000
• Loan tenure is 52 weeks

Features of Cashpor Micro Credit Income Generating Loans for different tenures

Loan Tenure - 52 Weeks

• Weekly repayment frequency
• Amount of loan - Minimum Rs 2,000 and Maximum Rs 15,000
• Grace Period - Two weeks in the beginning
• Number of installments to be paid by the borrower - 50
• Rate of interest - 23.94% per annum on a weekly reducing balance
• Processing Fees of 1% of the loan amount (inclusive of service tax)

• Insurance premium and coverage - Life insurance coverage of Rs 1,000 at a premium of Rs 5 (inclusive of service tax)

Loan Tenure - 26 Fortnights

• Fortnightly repayment frequency
• Amount of loan - Minimum Rs 2000 and Maximum Rs 15,000
• Grace Period - Three weeks in the beginning
• Number of installments to be paid by the borrower - 25
• Rate of interest - 24.18% per annum on fortnightly reducing balance
• Processing Fees of 1% of the loan amount (inclusive of service tax)

• Insurance premium and coverage - Life insurance coverage of Rs 1,000 at a premium of Rs 5 (inclusive of service tax)

Loan Tenure - 12 months

• Monthly repayment frequency
• Amount of loan - Minimum Rs 2000 and Maximum Rs 15,000
• Grace Period - One month in the beginning
• Number of installments to be paid by the borrower - 13
• Rate of interest - 24.52% per annum on fortnightly reducing balance
• Processing Fees of 1% of the loan amount (inclusive of service tax)

• Insurance premium and coverage - Life insurance coverage of Rs 1,000 at a premium of Rs 5 (inclusive of service tax)

Features of Cashpor Micro Credit Emergency Loans

• The loan amount is limited to Rs 1,000 only
• Weekly repayment frequency
• Emergency loans are granted to members in the event of emergency situations such as floods, fire, critical diseases or illness, major accidents etc
• The loan tenure is 25 weeks
• Processing Fees of 2% of the loan amount (inclusive of service tax)
• Insurance charge - 1% of the loan amount

Features of Cashpor Micro Bada Loans

• The loan amount ranges from a minimum of Rs 15,000 to a maximum of Rs 25,000 only
• The loan tenure is the same as the tenure of an Income Generating Loan, which is 52 weeks.
• Only a member who has taken loans in at least 4 cycles and is associated with the company for at least 3 years and has maintained a good record with the company is eligible for this type of loan.

Eligibility criteria for Cashpor Micro Credit

Cashpor Micro Credit uses the Cashpor Housing Index (CHI) to identify poor households in a cost effective manner. CHI is used for client selection as per the following criteria:

• If house score is 3 or less than 3
• If land is 1 bigha irrigated or 2 bigha un-irrigated
• If livestock is less than Rs 8000
• If a member has a colour television, motorcycle, pumping set or auto rickshaw, then he or she will not be eligible for a loan

• If any member crosses the upper limit of the above conditions then he or she will not be eligible for a loan

Cashpor Micro Credit FAQs

Is it possible to foreclose loans of this type?

Clients can foreclose these loans after 35 weeks without penalty.