While “micro lending” has recently become an international buzz word, SAATH’s microfinance institution (MFI) has provided saving and lending platforms to Ahmedabad’s slum areas for 15 years now.  SAATH’s MFI allow community residents—entrepreneurs—to access cheaper loans (24% per year at a reducing rate) than local private money lenders offer (50%+ per year).  In addition, the MFI provide clients 6% savings rate while larger banks do not allow this demographic to save, let alone offer rates higher than 3%.   Average loan sizes range from Rs. 3,000 to Rs. 30,000.  To date, Saath has nearly 10,000 clients, and a portfolio 130 lakhs saved and loaned.

SAATH’s MFI’s require clients to save every month, host annual meetings, and provide life skill training—all of which promote financial maturity.   SAATH recognizes that the impact of reliable and trustworthy banking services will have a generational impact on its clients and their children.

For more information on microfinance, please contact Divyang at divyang@saath.org.