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HOUSING FINANCE FOR THE POOR : SEWA BANK EXPERIENCE

MHT. HOUSING FINANCE FOR THE POOR : SEWA BANK EXPERIENCE. Prepared by : MAHILA HOUSING SEWA TRUST 401-402, Akash Ganga Complex, Brahmakshatriya Co-op. Society, Gujarat College Road, Navrangpura, Ahmedabad: 380 009. Gujarat State, INDIA.

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HOUSING FINANCE FOR THE POOR : SEWA BANK EXPERIENCE

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  1. MHT HOUSING FINANCE FOR THE POOR : SEWA BANK EXPERIENCE Prepared by : MAHILA HOUSING SEWA TRUST 401-402, Akash Ganga Complex, Brahmakshatriya Co-op. Society, Gujarat College Road, Navrangpura, Ahmedabad: 380 009. Gujarat State, INDIA. Phone: 079-26560536, 26560558, 65446208 Telefax: 26560536, Web: www.sewahousing.org, Email: mahilahsg@gmail.com

  2. Mahila SEWA Bank A POOR INFORMAL SECTOR WOMEN’S BANK BASED IN WESTERN INDIA SERVING MORE THAN 3,00,000 WOMEN WORKERS

  3. Head Loaders Vegetable Vendors Rag - Pickers

  4. Capital Formation Process C A P I T A L House Assets Sickness, Social occassions Risk, Flood, Cyclones Savings Debits T I M E

  5. OBJECTIVE • TO HELP POOR WOMEN TO COME OUT OF THE VICIOUS CYCLE OF POVERTY • TO COME OUT OF THE CLUTCHES OF MONEY LENDERS • TO BUILD SAVINGS, CAPITAL AND ASSETS • TO BUY EQUIPMENTS • TO IMPROVE LIVING CONDITION • TO IMPROVE THEIR HOUSING CONDITION

  6. SERVICES • SAVINGS • CREDIT • INSURANCE • FINANCIAL COUNSELLING • MICRO PENSION • HOUSING FINANCE

  7. SERVICE DELIVERY MECHANISM • SIMPLE PROCEDURES • DOOR TO DOOR SERVICE • DAILY COLLECTION • COLLATERAL LESS LENDING

  8. Rationale • Keeping SEWA members and their families out of homelessness. • Helping them to upgrade their homes thereby improving their productivity and quality of life • Improving access to water, sanitation and other basic infrastructure services • Providing an asset to increase their economic security

  9. Challenges to SEWA Bank • Conventional forms of collateral were not available • There was high lending risk because of the financial vulnerability of the group, and • There was no blueprint to follow, in terms of banking with these women

  10. Challenges Were Met by • Assessing the credibility and financial behaviors of the members, rather than depending on traditional concepts of collateral for repayments, • Putting emphasis on peer group pressure as a mechanism to ensure prompt repayments • Providing extensive credit related extension services, • Creating the bank's own track record of banking for women, • Designing simple and suitable procedures and products, • Linking credit with other much needed support services like insurance, health care, child care, legal aid and skills training, in order to reduce the women's financial vulnerability and • Establishing a continuous, personal and interactive relationship with the clients.

  11. HOUSING LOAN INCLUDES • REPAIRING • EXTENSION/UPGRADATION • ADDING SERVICES • WATER • DRAINAGE • ELECTRICITY

  12. TERMS OF HOUSING LOAN • SHORT & MEDIUM TERM • COLLATERAL LESS • REPEAT LOANS IN SMALL AMOUNTS • COMPOSITE LOAN (Business and House) • WITHOUT LEGAL TITLES

  13. SEWA Bank Growth Profile

  14. MORTGAGE HOUSING LOAN • House in women’s name • Housing mortgage loan (specifically for new house) • 15% of total cost as margin money • 5 to 15 years term (according to women’s age) • Maximum upto Rs. 5 lakhs • Rate of Interest -13% at reducing balance.

  15. Housing Finance by SEWA BANK

  16. THANK YOU

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