7. Micro Credit - MFI

Dhanlaxmi Bank's micro-credit scheme was introduced in 1998 to aid the efforts of Micro Finance Institutions in empowering women and helping in poverty alleviation.

Features

• Loans provided through Micro Credit can be utilized for agriculture and allied activities, consumption, production and other activities.
• Tenure up to three years.
• Flexible repayment options

Eligibility

• The MFI should be registered with the relevant authority as NBFC, NGO, Society, Trust or Section 25 Company and should have been functioning satisfactorily for more than three years.
• Objective of the MFI should be serving the social and economic needs of the community in general and weaker sections of society in particular.
• Proper system of maintaining accounts/records with regular audit, external/internal must be in place.
• Necessary financial management capability for enlarged operations.
• Adequate trained and motivated field staff for close monitoring.
• Where such advances exceed Rs. 2 crores, it would be advisable to obtain a rating carried out by an approved external agency
• Enabling provisions must be available in the relative Bye Laws/Memorandum and Articles of Association, Partnership Deed etc.

Source: http://www.dhanbank.com/microfinance/microfinance.aspx