Microfinance Initiative of Mamta began in December 2007, when it entered into an adhoc partnership with the Uttarakhand Microfinance and Livelihoods Promotion Cooperative Institution (UMFLPCI), a Cooperative promoted by the Government of Uttarakhand for providing microfinance services to poor clients in the State. Under the partnership, Mamta identifies potential clients, organises them into Joint Liability Groups (JLGs) while UMFLPCI conducts the Group Recognition Test (GRT) to approve and recommend the groups for loan disbursement. Mamta’s role is then to disburse the loans to the clients and collect share money (for share money of the JLGs towards the UMLPC), fee and repayment amount and remit directly to the UMFLPCI. UMFLOCI has signed a MOU with Mamta in April, 2008 and gave us status of NGO partner with the UMFLPCI.
As per agreement, we lend money to the members of JLGs on 15% flat interest rate. Out of which Mamta gets 6% spread with no other support available from UMFLPCI.
Although, we are not getting too much financial gain out of this deal but this partnership or activity certainly helping us to learn more about microfinance. In a short span of 8-9 months, we have learnt a lot from like minded organisations, institutions and more over we are learning by doing with our clients i.e. members of JLGs. We have also strengthened our hands in this field by interacting with people in the field of Microfinance, particularly participating in two AMI trainings conducted by Microsave in Lucknow and Jaipur. We have been able to streamline our system and started Process Mapping in our organisation after getting lots of inputs from concerned people and institutions.
We have also linked up our organization with L.I.C. of India in March, 2008 to provide micro insurance facilities to the members and families of the weaker section of the society, particularly to the members of JLGs.

Business Model-Bank Linkage/Direct lending:
As mentioned above, currently we are working with UMFLPCI which is Govt of Uttarakhand’s Microfinance Initiative. We are working as their partner NGO. We are involved in all process of lending money to the clients except GRT. So we are directly lending money to the clients after taking the required loan from UMFLPCI. We are likely to get loan from SIDBI which we will disburse directly to the clients and we will be following all the processes.

Products Offered:

Currently, we offer only one product i.e. General Purpose Loan with more emphasis on small entrepreneurships. It is given to JLG ( 5 women members in each JLG) with 15% Interest flat. The JLGs have to repay the same in 50 equal weekly instalments.

Client Profile (as of end of 31 July 2008)
Number of active clients 505
Percentage of women as clients 100%
Number of borrowers (till date) 505
Number of active borrowers 505
Average Loan Size on Disbursement Amount (INR) 10,000
Total Loan Disbursement (till date)
Amount (INR) 50,00,000/- (Approx. US$1,25,000/-)
Total Number of Groups(JLGs) 101