The company has been formed for the purpose of extending micro credit to people who are otherwise unable to access finance from the mainstream banking channels. The alternate source for such people normally is the private money lenders whose rates of interest ranges anywhere from 30% to upwards of 100%
The objective of the company is to make available finance at reasonable cost and in a transparent manner to such customers and aim to achieve acceptable returns on investment so that we can continuously attract mainstream capital and human resources to better serve the chosen client segments.
Equitas Development Initiatives Trust (EDIT) is a not for profit organization formed for the purpose of promoting education amongst poor children and also seek to play a positive role in the lives of ultra poor such as pavement dwellers and beggars. The company is committed to contribute 5% of its annual profits to this Trust.
Technical Advisory Services
The company has been selected as a partner for receiving of technical advisory services from Unitus Advisors P Ltd, a global micro finance accelerator. Unitus has come forward to partner us from our inception stage itself. We have already had intense interaction with their functional experts in areas such as business model, product development and processes and expect to benefit from their global experience in working with other MFIs.
Micro Finance Methodology
We operate under the Grameen model with suitable adaptations. The customers would be formed into groups consisting of 5 members and 3 to 6 groups would be clubbed to form a center. Each group and center would have one leader. The groups would be joint liability groups with each member of the group guaranteeing the loan repayment of the other members of the group.