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The livelihood loan schemes at Pustikar Credit Cooperative are characterized by relatively small loans, a few thousand rupees at most.
The repayment period is relatively short, about a year or so. Women are a major beneficiary of their activities, and the destination of
the funds primarily includes agriculture, distribution, trading, small craft and processing industries. The administrative structure is
generally light and the entire process is participatory in nature. The impact of credit lending is as widespread as in the rural areas
and urban areas.
Pustikar Credit Cooperative extends livelihood loans between 10000- 50000 for various purposes, like Manufacturing, Servicing, Small Business, Agriculture &
Allied Activities, etc.
The loan schemes also simultaneously undertake a social development agenda. This helps to:
- Raise the social and political consciousness of members
- Focus increasingly on women, whose urge for survival has a far greater bearing on the development of the family
- Encourage their monitoring of social and physical infrastructure projects - housing, sanitation, drinking water, education,
entrepreneurship, business development, agriculture, etc.
The lending practices are characterized by an unusually high degree of fairness, flexibility and service. Program loans are provided for
any reasonable purpose. The interest rates charged to borrowers are below or at market levels, and repayment terms are arranged to
accommodate the needs of the borrowing organization.
The terms and conditions of the loan agreement entered into with borrowers are significantly less restrictive and obtrusive than most
commercial loan contracts. The agreement is nevertheless a detailed and comprehensive one that is fully protective of the legal rights
and financial solvency of Pustikar Credit Cooperative. Reporting requirements are quite strict in requiring borrowers to submit substantial information
on a regular and timely basis.Pustikar Credit Cooperative is thus able to closely monitor the financial performance and organizational development of its
borrowers.
Pustikar Credit Cooperative provides technical assistance services to its borrowers in connection with the loan application process and subsequently as
circumstances warrant. The education and experience of staff and Trustees allow it to provide a wide range of quality services,
particularly in the areas of organizational development, financial management, and training in consensus process
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