This bank is giving lifesaving loans | Fusion - WeRIndia

This bank is giving lifesaving loans

This bank is giving lifesaving loans

Currently, the public banking sector in India is facing times of extreme instability and uncertainty.

Therefore, most banks are currently afraid of taking too many risks or doing anything that might endanger them.

However, one bank in Ahmedabad, the Kalupur Co-Operative Bank, is doing something that is highly unusual and risky: sending out loans to nomadic and unnotified tribes in Gujarat.

Most of these communities do not use dates or months, and the idea of them using the banking system is almost unheard of.

Yet, the Kalupur Co-Operative Bank has been helping them do this for the past 12 years, and they are hoping to use it to help these people build a better life for themselves.

Supposedly, the Kalupur Co-Operative Bank is the only independent bank in India that sends out loans to these isolated communities.

They are supporting these tribes because most of them do not have any permanent addresses or address proofs that they can use at a regular bank as collateral for availing a loan.

Ever since 2006, the Kalupur Co-Operative Bank has been loaning ₹50,000 to these communities for purchasing houses under government schemes and ₹25,000 for expanding their small-scale businesses.

This business expansion is done with an interest rate of 10%.

The Kalupur Co-Operative Bank’s decision to help these tribes comes from the efforts of the Vicharata Samuday Samarthan Manch (VSSM).

The VSSM is an organization based in Ahmedabad that works toward the welfare of nomadic and unnotified tribes.

The bank officials of the Kalupur Co-Operative Bank work together with the social workers of the VSSM, both to help introduce the communities into the banking system and to help them pay their installments by making some deposits on their behalf.

Although this may seem like a risky move from the Kalupur Co-Operative Bank, they are more concerned about making life better for the people in these tribal communities.

Image by InspiredImages from Pixabay (Free for Commercial Use)

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