BASIX, a livelihood promotion institution, that is into micro-credit, agricultural development services, farmer cooperatives and so on, has come out with two new products for the self-help groups (SHGs), with one being a micro-credit plus capacity building product and the other a health insurance product.
The products were launched at the national conference on ‘Emerging opportunities at the bottom of the pyramid – Transforming the Indian rural economy through profitability’.
The micro-credit product involves a loan of up to Rs one lakh at a declining interest rate of one per cent per month. The repayment period varies between 18 and 36 months.
“The product will be offered in 40 districts in states where we operate like Andhra Pradesh, Tamil Nadu, Jharkhand, Orissa, Rajasthan and so on. It will involve a training component wherein we will pass on good management skills for running SHGs to the members,” Vijay Mahajan, group chief executive officer of BASIX said.
The second product has been launched in association with Aviva Life Insurance and Royal Sundaram.
It is a life plus health insurance product that involves a premium of Re 1 per day with the sum assured being Rs 20,000 in the case of the death or permanent disability of the SHG member or the spouse respectively. It also covers five days of hospitalisation up to an amount of Rs 300 per day.
Meanwhile, BASIX is also working on a post harvest financing product for small farmers to help them overcome distress sale of crops.
“We are still working on this product with NCDEX and are likely to come out with it in the next few months,” Mahajan said.
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