India is one of the fastest growing countries in the world. The country is starting to fulfill its immense potential; the land has been rich in resources and talent for years, and is just now reaping the benefits of promise. However, the country is still struggling on several fronts. One of the issues is the financial situation; the country in general needs assistance in the area. Sonata Finance is one of these programs that intend to assist in the area, and have had varying degrees of success.
Sonata Finance has set a mission for their work. Sonata has pledged to identify and motivate poor people in a cost-effective way and deliver them micro finance services in an honest, timely, and efficient manner. Sonata has vowed to improve the likelihood that poor people can find a way to grow along with the culture, and not be left behind in the economic boom experienced in India.
Sonata has four major ways they work within the country:
1. Income Generating Loans
Sonata offers one basic loan product. During the first cycle and on average, clients apply for a loan of a maximum Rs. 8,000 (the minimum amount is Rs. 2,000). During each cycle thereafter, the client has the option of applying for up to 120% of the previous loan amount.
The basic loan is repaid in equal weekly installments at “center meetings” held in the local communities. Prepayment of principal is possible but only if the client settles the entire balance of the principal outstanding.
2. Emergency Loans
This product will start being offered to clients during the course of the next fiscal year. The emergency loan is designed to meet events that could put the continuity or effectiveness of the income generating activity at risk. To be able to access an emergency loan, the client must present a good rating in terms of credit discipline. Like the basic loan, the emergency loan must be approved by all the associates in the group. The emergency loan will be granted for a term of 25 weeks with weekly payments and the maximum loan amount is Rs. 2,000.
3. Individual Lending
Sonata Finance provides Individual Loan lending for individuals. Rest of the procedure is same as in group lending procedure.
4. Money Transfer
Send or Receive money worldwide instantly through Sonata Finance, we act as agent for Money Transfer`s Inward Remittance.
Through these methods of money handling actions, Sonata Finance has attempted to break the financial barrier in India. By providing some kind of financial assurance for the people, they can keep up with the ever-changing economy that has been experienced in recent times.
– Zachary Wright