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CFM Financial Access Program (CFAP)

Almost 90% of the artisans in India live around the poverty line and the contractors, middle man and the agents are their main financers in term of advances and credit at high rate-sometimes as high as 10% per month. Inability to fully finance the household consumption needs during non availability of work or due to health constraints affects an artisan's ability to remain stable in the tradition. Artisan and weaver communities have not benefited from mainstream Micro Finance Institutions (MFIs) as they have fixed scheduled of repayments and the poor community due to their cyclical nature of trade can't fulfill these requirements.

Mission
'To provide relevant financial support to Network Artisans and Entrepreneurs across India, so that they are able to increase income, promote equity and fair compensation, preserve traditional culture and skills, advance environmentally sustainable practices and improve their health and working conditions'

Target Clients
Producer Groups, Small Entrepreneurs and NGOs working with Artisan / Weaver Communities who fulfill the standards of Fair Trade and are linked with 'CFM-Partner Network'

Area of operation
Partner Network across India.

Services
Two different set of services for individual Artisan / Weaver and Producer Groups / Entrepreneurs / NGOs to address their different financial needs.

Products Description
For individual Artisans / Weavers

Products Description

For individual Artisans / Weavers

 

Loan for Consumption and Health Need

Loan for Micro-enterprise Development Loan for retiring Old Debts
Max Amount Rs. 3000 Rs. 5000 Rs. 3000
Registration Registered with CFM-Network for at least 3 months Registered with CFM- Network for at least 3 months Registered with CFM- Network for at least 3 months
Loan Duration 12 months 12 months 12 months
Interest rate 6% per annum 6% per annum 6% per annum
Principal repayment At least 50% of the loan amount in the first six months At least 20% of the loan amount every quarter At least 25% of the loan amount every quarter
Processing fees Rs 100 includes processing fees and credit insurance facility for client during loan duration Rs 100 includes processing fees and credit insurance facility for client during loan duration Rs 100 includes processing fees and credit insurance facility for client during loan duration

Collateral
Guarantee of two guarantors from the same village/ community
Guarantee of two guarantors from the same village / community Guarantee of two guarantors from the same village / community
Waiver In case of death of the applicant In case of death of the applicant In case of death of the applicant

For Producer Group / Entrepreneurs / NGOs

Loan Reason/
Cycle
Loan for
Enterprise
Development
Loan for
Raw Material
Loan for
Work Place
Intervention
Loan for
Marketing
Eligibility Criteria for next cycle
First Cycle 50,000 25,000 50,000 50,000 -
Second Cycle 50,000 25,000 50,000 50,000 After 50 % repayment of First Cycle
Third Cycle 1.00,000 50,000 1.00,000 1.00,000 After 50 % repayment of Second Cycle
Fourth Cycle 1.00,000 50,000 1.00,000 1.00,000 After 50 % repayment of Third Cycle
Loan Duration 12 month for first cycle and 12-24 months for the next cycles
Interest rate 8% per annum
Principal repayment At least 25% of the loan amount every quarter
Processing fees 2 % of the sanctioned amount
Collateral Personal guarantee from main promoters on Rs100 non judicial stamp paper

For Producer Group / Entrepreneurs / NGOs

Micro (Life) Insurance

All artisan member of CFM Market Linkages are insured under a micro (life) insurance scheme.

 
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