Agro Micro Finance

‘RANDORA’ (Golden Gateway) is a group-lending scheme implemented in 1996. Agromart Production Societies are eligible to borrow Rs.10, 000/- for disbursement among a Society's members who require financial assistance. An interest rate of 2% p.m. is levied from the Society which in turn re-lends on terms decided by its Committee.

The objective of this group-lending scheme is to deliver financial services through Societies resulting in, group formation and community cohesion. Since group members guarantee each other’s loans there is always peer pressure brought upon each borrower to repay the loan without default and also instills in them a sense of financial discipline.

This scheme commenced during the year 1996. The proceeds are disbursed to Agromart Farmer Societies by the Foundation, and not to individual borrowers. The maximum amount granted is Rs. 50,000/-. The loan is disbursed free of interest during the first six months and thereafter from the 7th month 2% per month is levied. The repayment period is one year.

The scheme operates in the societies according to regulations maintained by its members, and the proceeds are disbursed accordingly. The society is free to levy a reasonable rate of interest. The loan proceeds revolve among the society members.

Most often within the society these loans are disbursed to groups. Members of the societies who possess similar interests and skills form into groups consisting of 5-10 persons. Each group selects a leader, and they meet regularly with a view to gaining mutual support and exchange of experience.

These self-help groups are encouraged to save, and the Agromart Field Staff are motivated to create awareness among the group members about the importance of regular savings habit.

RANDORA Loan Scheme is available to such self-help groups through their societies, and it is envisaged that this type of micro credit schemes would bring about a new credit culture in the rural sector.

RANDORA ( Society Solidarity Group Loan Scheme )