Navodit foundation, a leading Trust with the core objective of reaching out the un reached poor, where poor cannot have access to credit from formal financial institutions at affordable rate of interest and at right time. Navodit foundation registered as a Company under Sec.25 of Companies Act 1956 on 15.02.1995 (Now Sec. 8). It is a “NOT FOR PROFIT organization. Though formed in 1995, lending operations started only in February 2000 after completing all the formalities such as putting in place the systems and procedures, obtaining of exemption under 12 A and 80G of Income Tax Act 1961.
Navodit foundation is leading in many parameters in MFI sector and growing in size year on year. It has assisted 7718 active groups during the year 2017-18 and 75964 groups since inception covering more than 2000 villages. The operations cover the states of Karnataka, Tamilnadu, Marathawada region of Maharashtra and Bundelkhand region of Madhya Pradesh which are the most backward regions socially and economically.
Navodit foundation onward lending activities are supported by Financial Institutes such as NABARD and SIDBI and many leading Commercial banks such as State Bank of India, State bank of Hyderabad, State Bank of Mysore, Canara Bank, Indian Bank, Union Bank of India, Syndicate Bank, Robo Bank and Water Credit Investment Fund of USA. SRFS works predominantly in rural/ most backward areas with special thrust on women and also for social/health related issues.(HIV/AIDS-Sex-workers etc.,-Soukhya Scheme in Kolar, Chitradurga, Bellary and Gulbarga districts). Sanghamithra strongly believes in lending for livelihood.
The company has eminent personalities as Directors, who have rich experience in micro finance, social sector, finance, technology etc,. They are guiding the SRFS at apex level and SRFS has become a replicable model. The systems and procedures are well laid down and followed meticulously. The USP of SRFS is following high standard of transparency. The basic objective for which SRFS was created remains unaltered and continues to focus lending in un/under-served areas across the Nation.
Navodit foundation business model is extending loan to Navodit foundation in rural areas for livelihood activities. The activities cover Agriculture, Allied Agricultural activities, very small business etc. SRFS extends loan to the group and the group in turn disburses the loan amount amongst its members as per the decision of the group. Thus, SRFS lending model is an extension of the SHG Bank Linkage model. We are in fact, extended arm of Banks. From the FY 2017-18 SRFS has diversified and adopted JLG model also along with traditional SHG model. JLG model is necessitated on account of competition from other MFIs who are adopting JLG model only as their business.
The entire business model of Navodit foundation complies strictly with the guidelines issued by Reserve Bank of India from time to time. We are following RBI guidelines strictly as applicable to NBFC –MFIs.SRFS is also extending loans to FPO startups at a very low interest rate ( 6% to 8%). Two such FPOs supported with loan have grown manifold in their business and one FPO is planning to enter overseas market also with their products.