General Loan :

The General Loan currently comprises about 80% of Grama Vidiyal’s total loan portfolio. These are small, collateral free loans offered to women entrepreneurs. The loans are disbursed to women federated in groups of 5 or more, with the other members serving as guarantors. Repayments for the loans are made at weekly centre meetings, facilitated by field managers.

General loans range in size from Rs. 5,000 to Rs. 15,000.

Seasonal Loan :

Grama Vidiyal provides Seasonal Loans to members who already have a General Loan outstanding and have a history of regular and prompt repayment and regular centre meeting attendance. These loans are offered at times of school admissions and festivals. Seasonal Loans of Rs. 1, 000 to 2,000 are offered.

The Seasonal Loan business is a small part of Grama Vidiyal’s operations, comprising only 7 to 10% of the outstanding loan portfolio.

Business Loan :

After providing financial services to entrepreneurial women for more than a decade, many members had stabilized and grown their businesses to a great extent. To meet the needs of these clients, Grama Vidiyal launched another loan product – the Business Loan. Business Loans are offered to members with at least two years of dependable repayment
history.

The Business Loan is an individual loan and does not require the guarantee of other group members, but does require a more extensive application in which the business concept, cashflows, and profitability of the business activity is considered detail. A two year or one year loan will be offered depending upon client’s repayment capacity.

Business Loans range in size from Rs.30,000 to Rs.70,000. These loans currently make up 7 to 10% of the total loan portfolio.


Housing Loan :

Through client surveys, Grama Vidiyal has realized the need for housing loans. Most clients build additions or new houses on a piece by piece basis, at times when they have extra money. The housing loan will enable members to build or add to their house at one time and pay back the loan over time. Grama Vidiyal plans to make the Housing Loan
available by 2008.

Loans will be offered in sizes of Rs.70,000 to Rs.90,000. Tenure for the loan will be 3 to 5 years.