SOURCES OF FUNDS
The company mobilises funds from the following sources: -
a) Bank Loans. The company takes loans from Banks and other Financial Institutions. Such loans are secured by the assets of the Company and those of the Promoters of the Company.
b) Members Savings Accounts. All micro credit loan beneficiaries in the company are required to save with the company towards creating their own Capital. The loan beneficiaries save about 4% of their loan amount every month. Their profit/loss share for the amount they save is based on the minimum balance maintained in the account for the week.
c) General Investors Account. The Company mobilizes funds from Shareholders, and friends and relations of the promoters. The Company as an MFI (micro finance institution) is barred by law from taking deposits from the general public.
d) Special Investors Account. Customers may bring in their funds and specify the type of activities or investments the funds may be used for. The purpose, terms, conditions and mode of investment of these deposits are decided by mutual consent at the time of receiving the deposits.