Spandana targets Rs 750 crore loan disbursement this fiscal

Spandana, a microfinance institution (MFI) which offers innovative financial solutions to poor women in slums and semi-slums of villages and towns, has registered an increase in the number of advances to 7,54,364, and cumulative loan amount to Rs 498.27 crore.

The number of poor women beneficiaries also rose to 3,90,537 in 2,097 villages of Guntur, Krishna, Visakhapatnam, Prakasam, East Godavari and West Godavari districts and Hyderabad city at the end of 2004-05 as against the actual targets of Rs 220 crore and 2.5 lakh women respectively.

It disbursed Rs 195 crore to 1.75 lakh women till 2003-04. It was also awarded the 'highest safety' rating by Crisil and Mcril.

With a surprising loan recovery rate of 99.9 per cent and an average loan size of Rs 6,690, the organisation registered a portfolio risk of 0.01 per cent in the fiscal.

Spandana director G Padmaja Reddy told Business Standard that "the organisation is targeting a cumulative loan disbursement of Rs 750 crore (Rs 251.73 crore increase) to 7,80,000 women in 2005-06 fiscal. At the end of April, Spandana's advances touched Rs 562.44 crore, number of loans 8,40,671, members 4,37,841 and groups 44,458. In the process, the number of branches has increased to 104, and centres to 16,366."

The organisation collected Rs 16.56 crore from its members under Siri Saving Scheme. Spandana operates 96 branches with 13,903 centres, covering 228 mandals in the six districts.

Six branches were opened in Hyderabad a few months ago and 25,000 poor women have so far joined the organisation as members. Three new schemes have been introduced this fiscal "� daily loan collection scheme, a Rs 5-crore housing scheme for members, and a scheme to supply nutritive fodder to dairy farmers among members.

Reddy said, "Spandana has acquired 6 acres of land at Guntur and would be constructing 600 houses. The houses would be handed over to the members after collecting from them the cost of construction. ICICI bank is funding the scheme."

To its two lakh women members, who rear three lakh buffaloes, Spandana in tie-up with Godrej company, is supplying the latter's Agrivet feed at Rs 6.50 per kg. It was observed that buffaloes fed on Agrivet gave 4 litres of milk per day, an increase from 1.5 litres. At present, feed available in the open market is priced between Rs 5 and Rs 7 per kg and is largely adulterated."

The microfinance organisation has opened a diagnostic centre in Guntur at the request of its members, and is planning to open another one in Vijayawada, she said.

Service to members is rendered on a no-loss-no-gain basis. ICICI bank released Rs 220 crore to Spandana in 2004-05. Other banks which helped Spandana were Small Industries Development Bank of India (Rs 50 crore), IOB (Rs 20 crore), IDBI (Rs 3 crore), HDFC (Rs 25 crore), ABN Amro (Rs 5 crore) and UTI bank (Rs 5 crore), she added.