Target Clients and Lending Methodology

Target Clients 

100% of Mitrata clients comprise of women. We work with marginalized and vulnerable women living mainly in rural areas of India whose annual household income is less than Rs 100,000 in case of rural and less than Rs 160,000 in case of semi-urban. The client households are mostly engaged in income generation activities in agriculture, livestock, small businesses and shops, transportation, handicraft and sectors. The financial support provided to women is aimed at bringing about economic empowerment in their lives.

Lending Methodology

Mitrata work is mainly focused in rural areas. A new operational area is selected based on the assessment of socio-demographic, geographic profile and political stability of the area. Once selected, a branch is set up in the new area. Each branch is staffed with a Branch Manager and 4-5 Field Officers, initially covering a radius of about 15-20 kms. Each Field Staff visits villages in the area of operation to familiarise themselves with the local context (in which they will be operating), identify prospective clientele and explain the purpose, functions, and mode of operation of Mitrata to the local communities.

Mitrata has adopted a Joint Liability Group (JLG) model for reaching out to the marginalized and the vulnerable women. Guided by this model, groups of five prospective women borrowers are formed and 2-3 such groups constitute a Centre. After the formation of the Groups, all clients mandatorily have to go through a 2-day Compulsory Group Training (CGT). Post-CGT a Group Recognition Test (GRT) for the group/centre is conducted by the Branch Manager. Successful completion of GRT leads to credit extension and thereby marking the entry of member into a long-term, sustainable and mutually gainful association with Mitrata. The Loan disbursement is done at the branch premises. Typically it takes less than 10 days for loan disbursement. Post-loan disbursement, Mitrata team encourages & support members in their socio-economic advancement.

Mitrata model works on the concept of social collateral and does not require any collateral for advancing loans to the clients.