Urban India is a unique economic and social environment. Ujjivan adopts the most effective microfinance and banking methodologies, and modifies them to be suitable for our target customers.

Group Lending Model

In the field of traditional microfinance Ujjivan is a Grameen replicator. The Grameen Model, developed by the Grameen Bank of Bangladesh, has been tried, tested and evolved over a period of almost 30 years and ensures that financing reaches each individual member of the group based on merit. The lender has a greater involvement in the loan process, which we believe is critical during the initiation phase. Grameen Bank has provided Ujjivan with technical guidance, training, and a resource person. This is the primary model we have adopted.

Ujjivan’s lending methodology consists of five poor women who together form a group. All Ujjivan customers go through the process outlined below.

Group Recognition Test: Ujjivan ensures that customers are aware of and understand:

Group guarantee/responsibility
Discipline
Products & services
Benefits
Policies & procedures

Center Meetings: Each center is typically comprised of five groups and has a mandatory weekly or fortnightly meeting. During these meetings, the following takes place:

Discussion of social/community issues

Individual Lending Model

Ujjivan’s geographical diversity and continuing growth is mirrored by the diversity of profiles and the evolving needs of our clients. Through Individual Lending, Ujjivan provides customized credit to match the specific profile and financial needs of our “Graduate Clients” – clients who have completed at least one loan cycle under Group Lending. This allows us to maintain our dual objectives of – forming well-entrenched relationships with our clients while remaining innovative and maintaining our position as a market leader.

In line with Ujjivan’s firm belief in product diversification, we currently offer 4 types of Individual Lending products to our Graduate Clients:

1. IBL (Individual Business Loan) – caters to the needs of individual micro-entrepreneurs who have a running business and require funds for working capital or fixed assets. This product is offered to clients who have completed 2 loan cycles under Group Lending

2. STBL (Short Term Business Loan) – caters to the working capital needs of our clients running seasonal businesses. This product is offered to clients who have completed 1 loan cycle under Group Lending

3. Livestock Loan – to cater to the financing needs of clients engaged in animal husbandry activities. This product is offered to clients who have completed 1 loan cycle under Group Lending

4. Housing Loan – to help finance housing needs such as rentals, leases and house improvements of our clients. This product is offered to clients who have completed 2 loan cycles under Group Lending

   

Since 2008 Ujjivan has been assisted by WWB (Women’s World Banking) in designing the primary framework and building institutional capacity required for the launch and sustaining of a successful Individual Lending business model.

Dodthaiyamma is involved in toy-making. Channapatna is famous for these toys. She is a mother of three.