SEWA bank to enter housing finance segment

SEWA Bank, a part of the micro-finance segment has planned to come up with a separate housing finance segment within the next six months or so.

The bank will focus on providing loans to women especially those who do not get loans from public-sector banks due to their economically weak background and employment in the unorganized sector.

The loan amount demanded in this segment is around Rs. 1 lakh to Rs. 15 lakh so that the SEWA members can buy their own houses.

Currently, SEWA Bank offers housing as well as repair loans with a ceiling of Rs. 50,000. The loan amount offered is restricted to Rs. 50, 000 due to banking regulations.

The bank has disbursed repair loans of around Rs. 6, 08, 49,600 in 2007-08 to around 2,645 SEWA Bank members. The amount disbursed as home loans is worth Rs. 1, 33, 49,999 to over 525 members. SEWA bank has over 1, 75,000 depositors.

The State Bank of India (SBI) has also roped in SEWA Gram Mahila Haat (SGMH), an organization marketing rural produce promoted by SEWA.

SGMH is involved in the project as a business facilitator (BF) to provide financial services to the economically weak section in areas of saving, credit, remittance, insurance and pension products in certain areas of Gujarat.