The Saath Savings & Credit Cooperative Society Ltd (Saath Cooperative’s) makes affordable credit accessible to socially and economically marginalized persons, especially areas where no banking facilities are available. It offers various micro credit and micro saving options linked to members’ demonstrated willingness to save, and generates employment/ entrepreneurship options for its member in close association with Saath Livelihood Services.
Saath Cooperative’s vision is to build sustainable community-based organizations that provide financial services to its target group with the aim is of contributing to improving the members’ living standard and reducing poverty. The member based and saving driven model requires a member to become shareholder by purchasing four shares at a nominal fee.
The Saath Co-operative has the following saving products to its members:
- Compulsory Saving Scheme: The members are required to enrol under the Compulsory Saving Scheme under which they save INR 200 for three consecutive months to become eligible to avail the first loan of up to INR 10,000. Withdrawal is permitted only after INR. 4800 is deposited. A minimum balance of INR.600 has to be maintained.
- Voluntary Savings: Members can deposit more than INR. 200 per month, and can withdraw against the voluntary savings without any restrictions.
- Fixed Deposits: Members have the option for saving a minimum amount of INR. 3000 in Fixed Deposits for tenures of six months to 2 years.
- Child Plan: Members can save INR.200 or any amount in multiples of 200 per month for their children up to 36 months. On maturity, the amount can either be withdrawn or further invested.
- Monthly Income Scheme (MIS): There are two monthly income schemes, for 3 years and 5 years periods with minimum amount of INR.10000. Pre- mature discontinuation of the scheme is not permissible. The amount payable monthly will be automatically transferred to his/her voluntary saving
- Recurring Deposit Scheme: In this product, any member can save INR.500 or any amount in multiples of 500 per month with varying interest for 12 months, 24 months & 36 months. Once the monthly deposit is fixed the same cannot be changed during the plan period.
- Double Scheme: This product is exclusive for 6.5 years period with minimum amount of Rs. 5000. Pre- mature discontinuation of the scheme is not permissible.
The Saath Cooperative has the following four types of credit options:
- Production Loan: for establishing micro-enterprises.
- Asset Creation Loan: for debt redemption, house repairs and purchase of assets.
- Consumption Loan: for health, education, household and social events expenditures.
- Individual Loan: is exclusively for shopkeepers.
The Saath Cooperative’s total membership in 2015-16 was 20,176 with total equity of INR 10,712,275.