Our Products

CBO Wholesale loans

By far the largest portion of Sewa Finance's loans are wholesale CBO loans. Sewa Finance lends money to well established CBOs that have demonstrated they have reached Sewalanka Foundation's stage 3 level of development. This means that they are able to:

• handle advanced bookkeeping (e.g. cash book, bank dealings)
• manage bank correspondence
• manage loan disbursements from external lender
• according to proper criteria and with full recovery
• submit final accounts documents to an auditor
• manage a current account
• recruit and manage required staff (e.g. GM, accountant)
• establish and manage sub-committees or groups to address different issues
• find a neutral, permanent place to store documents and hold meetings
• identify and utilize the skills of people in the community
• take responsibility for formal, written agreement.

There are three main officers in all CBOs (Chairman, Treasurer and Secretary) and they become the main people responsible for collecting dues from members and interfacing with Sewa Finance staff. Loans are granted typically for between 10 and 30 members and are repayable over the period of one year. Sewa Finance wholesale loans are charged at 24% per annum interest on a declining balance.

Short-term agricultural loans

These loans are also administered through CBOs but typically mature in 3- 6 months. Only the interest is paid over this time with the capital repaid once the crop has been harvested at the end of the 3 - 6 month period.

 

Enterprise Loans

Loans to individuals who are engaged in some sort of enterprise make up roughly 10% of Sewa Finance's portfolio in Ampara district. They will be rolled out in other districts in the coming years.

Loans range from Rs. 100,000 to 200,000 and are often used for working capital, equipment or premises improvements.