CASHPOR Micro Credit

Social Performance and ImpactTheme 3 - Our product and its delivery are specially designed to meet the needs of the poor, in a responsible yet sustainable way.

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We Provide Meaningful Financial Solutions for the poor

CASHPOR has structured its first loan size to range from Rs 2000 to Rs 8000Average loan outstanding less than the per capita income in UP and Bihar.

Continuous Group Training and Group Recognition Test form an important part of CASHPOR lending, empowering clients with financial literacy and enabling responsible credit behavior.

CASHPOR interest rates have been reduced to 26% on a declining basis, thus being in the Yellow Zone as defined by Prof Yunus. Plans to further reduce rates to 24% by 1 April 2012, to enter the Green Zone.

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High staff to borrower ratio (1 centre manager for 375 clients, FY 2010) ensures that the staff spend adequate time with clients on training, meetings and recovery.

A high percentage of our loans are for productive use

Loan Activity % of Portfolio as of March 2009

3Source: CMC Annual Report 2008-09

…and we maintain Responsible Interest rates for clients

• Prof Yunus identified three zones of Interest Rates: Poverty Focused MFIs fall in the Green and Yellow zones.

• CASHPOR has reduced its interest rate to 26%, and entered the “Yellow Zone” as a poverty focused MFI with an interest rate of no more than 15% over cost of funds; and plans to get into the “Green Zone” by reducing its interest rate further to 24%.

 

Source: Prof. David Gibbons, Chairman- CASHPOR Micro Credit India 4

In addition, CASHPOR is a highly responsible loan provider ….

Random Audits

CASHPOR performs rigorous Loan Utilization Checks, made possible by having the required high staff to customer ratio :

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CASHPOR takes great care to establish clients can afford loans, and do not over borrow

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Reduce chances of Client

Over-indebtedness

Reduce chances of Client

Over-indebtedness

Thus, we have built sustainable value around a core market need

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