Agro Micro Finance

Although Agro Micro Finance has been giving financial assistance to the entrepreneurs for income generating projects of various description, we have not been able inculcate the habit of savings among the entrepreneurs with the result they have been dependant on our loans right through. Our intention is to free themselves from this vicious grip by promoting the establishment of the fund of their own to be invested in their projects for expansion or improvement.

Unfortunately the existing regulations do not permit us to collect savings from the entrepreneurs. As an alternative with the prime initiation of inculcating the culture of savings in the minds of our enterprises we have initiated a loan security deposit scheme. This scheme provides for a 15% minimum deposit of the intended loan as a time deposit extending from one year to three years. If they wish they could deposit more. However, the interest is payable to these deposits.

This scheme was started in one district in January 2007. The popularity of this scheme was such that within 3 months these entire 7 districts were covered. And request from our clients have come for different other savings products

Including children (Minor) savings and normal day to day savings which we have to put on hold till the Micro finance Act is implemented.

Diriya Ithurum