Linkage with Financial Products

We believe that behaviour change doesn't merely occur through an education programme. Adoption of formal financial products will occur if financial education is followed by linkage with various products. Thus, SFA is actively involved in linking community members to different financial products and also giving hand-holding support for their utilization. The types of products we typically link households to are:

1) Savings facilitation
  • Opening of 'No-Frills' Bank Accounts
    SFA understands the importance of providing access to banks for the urban low income communities and facilitates opening of 'no frills' bank accounts for the participants of the FEP. Accounts are opened in different nationalized banks, based on the proximity of bank branches to the participants.

    SFA has established partnerships with sixteen different banks as a facilitator for opening bank accounts. Participants get handholding support from SFA trainers and mobilisers to open the 'no frills' accounts and they are taught to fill the bank pay slips, update pass books, use ATM facilities etc.

  • Opening of Recurring Deposit/ Fixed Deposit Accounts
    Some of our participants who are already saving in a normal savings bank account but also wish to move on to more sophisticated savings options are given information about Recurring Deposits and Fixed Deposits. Assistance is also provided for filling up the forms for the same.

  • Linkage with Axis Bank-Airtel Mobile Money
    The Axis Bank-Airtel Money is an an Airtel mobile wallet backed by an interest- bearing no-frills bank account with Axis Bank, enabling a suite of financial transactions - deposits, withdrawals, utility payments, money transfers and loan repayments, all through the cell-phone.

    The KYC norms for this product are somewhat laxer than those of commercial banks. Individual who are interested in having a bank account but do not have adequate KYC documents (such as migrant workers)/ are interested in having a mobile banking option, are linked with this product and given hand-holding support for the first few transactions.

2) Micro-insurance

SFA informs participants about the various insurance products available in the market. We also distribute a micro-insurance product called Jeevan Mangal as an agent of Life Insurance Corporation of India (LIC). It is a one-time premium plan especially designed for low-income groups.

3) Micro-credit

During FEP, participants are informed about various formal sources of credit and their benefits, as compared to informal sources.Participants, who are interested in receiving micro-credit, are then linked to different financial service providers. The microfinance entity and thus community members are brought in to the virtuous cycle created by borrowing from formal sources.

@Copyright 2011 Swadhaar FinAccess                                              CIN: U91990MH2005NPL151790