SAVINGS & INVESTMENTS REMITTANCES

Transcription

1 Product Flip Chart

2 FINANCIAL SERVICES REQUIREMENTS OF RURAL HOUSEHOLDS SAVINGS & INVESTMENTS RISK COVER ACCESS TO CREDIT REMITTANCES Lets look at some household situations where availing our products can help

3 SAVINGS & INVESTMENTS MMMF

4 Housewife and Daily wage earner Both myself and my husband get daily wages. Every month, we do manage to save some amount but so far we have just been putting aside the amount in a box in the house. It does not feel safe to keep it at home. It would be better if we could put it in some bank, but the bank too is located so far from our place that we would find it very inconvenient.

5 Do we have a solution for such cases of REGULAR SMALL SAVINGS? SOW TODAY REAP TOMORROW YES OUR MMMF PRODUCT IS AN IDEAL CHOICE

6 MMMF PRODUCT FEATURES What is MMMF? MMMF is a regular savings product Types of transactions Initial investment Redemption Subsequent investment Closure of account Minimum investment amount Frequency of investment Withdrawal facility The minimum amount for all transactions is Re.1/- and in multiples of 1/- thereof You can deposit whenever you have any surplus in hand. There is no limit to the number of investments Yes, the amount in the account can be withdrawn at any time. You can then again re-deposit as and when you have some surplus Requirements Rate of return Where is my money invested Account Status Pan Card - KGFS facilitates issue of PAN card for its customers Power of Attorney agreement There is no fixed rate of return. But historically, the product has been earning higher than a regular savings bank account The amount is invested in Prudential ICICI Liquid Plan which in turn invests in government securities and other debt instruments You can get the status updated in your Passbook whenever you visit the branch. Quarterly statements are also provided

7 RISK COVER - INSURANCE

8 I have been working as a milkman supplying milk in my village as well as in a couple of neighboring villages. Things had been going smoothly till last month when 2 of my cows died. My earnings have drastically dropped. To buy another cow, I might have to probably pledge my wife s jewels I always worry about what will happen to my family back home if something bad were to happen to me during these strenuous work at the construction site. Thankfully this work is only for 40 days and it pays so well I cant say no to it. I can only be extra careful and pray for God to be with me..

9 YOURSELF LIFE INSURANCE PERSONAL ACCIDENT INSURANCE YOUR HOUSE / SHOP PROPERTY INSURANCE INSURE YOUR CATTLE YOUR CROP LIVESTOCK INSURANCE CROP INSURANCE

10 PERSONAL ACCIDENT INSURANCE

11 PERSONAL ACCIDENT INSURANCE PRODUCT FEATURES Why is PAI needed? Age limit for cover Sum assured Premium amount Validity of cover Medical requirement Maturity of policy without any accident event Provides financial cover to life and disability of client due to accident Between years of age Rs. 25,000/- Rs. 50,000/- Rs. 75,000/- Rs. 1,00,000/- Rs. 10/- Rs. 20/- Rs. 30/- Rs. 40/- Is valid for 1 year from date of receipt of premium No medical tests required No information on pre-existing diseases required There is no maturity value. This is for pure risk cover

12 Injury results in Coverage PERMANENT TOTAL DISABILITY (PTD) Death Both hands or feet or sight One hand and one foot Either hand or foot and sight of one eye Hearing of both ears Speech Either hand or foot (loss or loss of function) Sight of one eye 100% of sum assured 100% of sum assured 100% of sum assured 100% of sum assured 100% of sum assured 100% of sum assured 50% of sum assured 50% of sum assured INSURANCE - PAY A SMALL PRICE TODAY FOR A MORE SECURE TOMORROW

13 LIVESTOCK INSURANCE

14 LIVESTOCK INSURANCE PRODUCT FEATURES Why is Livestock Insurance needed? Purpose Eligible category Maximum age of animal Minimum age of animal Age proof Insurance provider VET services Claim settlement Provides Insurance to cover death of livestock Safety net for the client in case of death of cattle Help in coming out of the shock Support to the client to buy asset again All Members of KGFS 8 years 2 years Not Needed HDFC Ergo De-worming and Vaccination done twice a year by VET to cover any health risks Sum assured paid to client within 72 hours of raising claim

15 CATTLE VALUE Value as determined by the Vet at the time of tagging or declared by the Customer, whichever is lower PREMIUM AMOUNTS 3 Year Policy 7% of value of cattle + ST + Rs. 400 for VET services 2 Year Policy 5.4 % of value of cattle + ST + Rs. 310 for VET services 1 Year Policy 2.9 % of value of cattle + ST + Rs. 220 for VET services SUM ASSURED Sum insured = 85% of value of cattle on death, up to a limit of Rs.25000

16 PREMIUM PAYMENTS UPFRONT PAYMENT INSTALLMENT PAYMENT Pay Premium and take receipt Make initial payment Pay balance through EMIs Monthly EMI - 3 or 6 months Weekly EWI - 12 or 24 weeks Minimum Loan amount - Rs. 1,000/- Maximum Loan amount - Rs. 5,000/- Loan amount = 85% of premium Here is a cow insured by KGFS. The RFID Ear Tag helps in identification of the Cow at the time of claim settlement.

17 ACCESS TO CREDIT JEWEL LOAN

18 Head of family planning for house repair I don t think the roof of my home will last another monsoon season. My child had bad fever too because of the rains. I must think of repairing my roof make a pucca roof. I plan to pledge jewels, & take a loan. But I must do it quickly. I just cant find the time! The monsoons will come by next month

19 You could have many such situations where you need immediate cash The Jewel Loan offered by KGFS gives you instant cash against your jewellery at affordable rates

20 JEWEL LOAN PRODUCT FEATURES What does it offer? Purpose of Loan Loan amount Loan tenure Repayment mode Return of jewels An emergency loan against pledge of your gold jewellery at affordable rates and minimum processing time Yes, the loan can be taken for any purpose - for consumption or for further production You can take up to 80% of the market value of the gold. The maximum amount which can be given is Rs. 50,000/- You need to repay the loan within a period of 1yr. Renewal can be done with necessary terms & conditions You can choose to repay as and when you have surplus funds. Prepayment of entire loan can be done We shall return the jewels as and when complete repayment of the principal and interest is done

21 ACCESS TO CREDIT - JLG

22 Housewife wishing to put her extra time to productive use I am just sitting at home wasting time. My children have grown up now. Because of my aged parents, I cant find work out of home too. The best option is to buy some livestock either a cow or a pair of goats. We had sold off our cows sometime back but now I think is a good time to buy one with a loan. I can pay back the loan in installments by selling the cow s milk. I really want to get myself educated so that I can get a good job and get my family out of poverty. Although I study well, I think the biggest problem will be the college fees. Where can my father get so much money to pay for it? I don t want all my mother s jewellery to be pledged for this. Take a loan from informal sources and we are indebted for life! Young aspirant worried about education expenses

23 We are neighbors and good friends too. Our husbands are employed in fields in the neighboring village. Both of us want to spend our free time productively. We are thinking of buying 2 cows each and earn some money by selling milk. We would need a loan for this. We have already pledged our jewels for a loan to build our houses. We don t have anything to offer as Collateral

24 The JLG loan at KGFS offers access to finance without requirement of any collateral All that we need is a group of members who come forward jointly for a loan and are ready to share the responsibility of repayment

25 JLG LOAN PRODUCT FEATURES What does it offer? Loan Purpose Loan amount Loan repayment Interest calculation Loan prepayment Need for collateral Can I take another loan once I have repaid the first cycle? The JLG loan is a loan given to a group of members who are jointly responsible / liable for the repayment of the loan Yes, the loan can be taken for productive as well as consumption activities. A maximum of Rs. 15,000/- can be given in the first loan cycle The loan needs to be repaid in 50 equated weekly installments The interest is calculated on diminishing balance. Hence, with every repayment, the interest component keeps falling. Yes, you can repay the loan in case you get any surplus funds. No. No collateral is required for this loan. All that we need is the group guarantee. Yes. You will be eligible for the 2 nd loan cycle once you have completely repaid the first loan cycle.

26 Some more points to remember GROUP CHARACTERISTICS Members of the group: Need to be of same gender Must NOT be from same family Should be neighbors Women should be married* Should be between 18 & 60 yrs A 3 day Compulsory Group Training CGT will be held for all members A Group Recognition Test GRT will be held after the CGT to test the understanding of the product features by the members * Spinsters above the age of 35 yrs are allowed

27 ACCESS TO CREDIT - RETAILER LOAN

28 Kirana store owner with an aspiration to expand business I wish I had some extra money to stock up my store. Diwali is coming in a month s time and I am expecting a big increase in sales. My business is too small. To expand it, I must have enough money to increase the number and variety of goods sold at my shop. Today, there are so many products being advertised on TV, its difficult to keep track of what people want

29 Retail traders like these need finance mainly for 2 major reasons To expand business by : To buy stock / working capital for day to day business requirements Setting up shop in another area Renovating existing shop Diversifying into a new line of business Working Capital Loan Term Loan RETAILER LOAN

30 Working Capital vs. Term Loan WORKING CAPITAL TERM LOAN To manage daily operations of business Short Period requirement Quantum of amount normally low Multiple disbursement and repayments within sanctioned limit as per the requirement of the customer Interest collected monthly and principal at the end of tenure To expand existing business / diversify the activity Long term requirement Quantum of amount normally high One time disbursement Both interest and principal is collected as equated monthly instalments.

31 RETAILER LOAN PRODUCT FEATURES Nature of Loan Given to individual retailers based on their cash flow or working capital requirement Purpose of Loan Working Capital : To run the existing business Term Loan: To expand, renovate or diversify Loan Amount Maximum up to Rs. 50,000/- Loan Eligibility Tenure Men & women of >= 18 years of age Must be running the business activity for last 2 years Ownership of residential or commercial property in the service area Working Capital: 1 year and can be renewed after that Term Loans: 6 to 24 months for weekly & monthly repayment Maximum up to 1 year for daily repayment Security Repayment Pre-payment Third party guarantee WC: Interest paid monthly and principal as per convenience TL: Installments in daily/weekly/monthly installments Full Pre payment is permitted without any penalty

32 PURCHASING GOLD

33 Father of girl My daughter would be of marriageable age in another 10 years. I have to start saving money for the marriage. One of the biggest expenses would be to buy gold jewellery. Gold prices have been rising over the last few years. I don t know how expensive it would become at the time of my daughter s marriage. I think its better to start accumulating gold in small quantities from now

34 KGFS offers you 24 carat gold coins in association with TITAN Industries Offers % purity Gold coins offered by KGFS are 24 carat as against 22 carat of gold jewellery Safety, liquidity and profitability of investment Coins can be converted to jewellery at any time KGFS offers 2 ways of investing in Gold PAY CASH & BUY GOLD OPT FOR A GOLD PLAN

35 What does the Gold Plan offer? Minimum quantity to avail gold accumulation loan Down payment The Gold plan helps you to take a loan and buy gold at today s market rate. It protects you from the inflation in gold prices Yes the minimum quantity is 4 gms Yes 5 % of the value of the gold on the date of purchase plus transaction cost rounded off to higher multiple of Rs. 10/- Loan amount The maximum loan amount is Rs. 50,000/- Interest calculation GOLD PLAN PRODUCT FEATURES The interest is on diminishing balance. So with every repayment, the interest component keeps reducing. Loan tenure Repayment mode Loan prepayment Installment amount The loan has to be repaid within one year The repayments are in Monthly / Weekly mode Yes both full & partial prepayments can be done. Minimum of Rs. 100/- for weekly / monthly mode