Antenna Micro Credit Network (AMCN)

AMCN was formed in the year 1995 and got registered at Madurai. The main objective of the organization is social development of women. AMCN, in its area of involvement, found out that Girl children and women during Ante Natal Care(ANC) and Post Natal Care(PNC) were very much affected by anemia. The organization initiated production of Spirulina and distributed dried spirulina / spirulina tablets / spirulina capsules / spirulina chikkies to children as well as women to overcome anemia. ANTENNA gradually changed its strategy and by 2003 started providing direct financial assistance [by way of micro credit] to the poor to help them better their living conditions. ANTENNA identified some Self Help Groups [SHGs] and initiated the practice of small savings and credit among them. ANTENNA started giving them small loans to the tune of Rs.3000/- or Rs.5,000/- under micro credit program with a view to fulfill their credit needs. They were also encouraged to become small entrepreneurs. In 2007, this Micro credit program of AMCN was extended to 6 districts in Tamilnadu . As of now, 18750 Members belonging to 1200 SHGs are being edxtended loans with the focus on economic empowerment of the poor.

Objectives
• To identify people who are socially backward and financially poor and to impart training to them in various aspects related to entrepreneurship development.
• To provide them with them a loan amount ranging from Rs.10000/- to Rs.25,000/- to enable them to become small entrepreneurs [ with small businesses].

Eligibility criteria to join Micro Credit Program
• Only Self Help Groups (SHGs) are eligible.
• SHGs should be functioning as a group.
• SHGs must conduct regular monthly meetings.
• Members of SHGs should be capable of paying regular monthly subscription and savings amounts.
• Each SHG should start a separate Savings Bank Account on its name in anyone of the Banks and remit the savings amounts of its members regularly in the Bank every month.
• SHGs must Keep all documents updated.
Only such SHGs are eligible to receive any Loan under the ANTENNA Micro Credit Program.

Implementation strategy
- AMCN is directly involved in giving loans to some SHGs.
- ANTENNA Micro Credit Network (AMCN) has been formed in association with credible NGOs identified in the southern districts.
- The NGOs identified and selected recommend SHGs for financial assistance to AMCN.
- AMCN implements the program at the grassroots through the selected NGOs.

Rating of SHGs
Rating is done on the basis of the documents given by the NGOs. Rating is conducted only on request from the NGOs. The main focus of Rating is to identify the credibility and viability of SHGs, to assess the activity performance of SHGs, and to find out if the loan will be utilized properly for the stated purpose. The proceedings of the Rating process is documented thoroughly. If the SHGs are found suitable, then the loan amount is sent to their Bank accounts. The SHGs withdraw the money from the Bank, call for a meeting of all their members, and disburse the loan amounts to the Members in the presence of the NGO representative. This process helps ANTENNA to avoid the perils of one person receiving loan in the name of another person. Also, utilizing the loan amount sanctioned to another person is completely eliminated.

Loan is given for Small scale entrepreneurship :
In relation to
• Animal husbandry
• Agriculture
• Education and
• Repaying loan received earlier for higher rate of interest
Loan amount
First loan is fixed at Rs.10,000/- ; the 2nd loan at Rs.15,000/-; the 3rd loan at 20,000/-; and the 4th loan at Rs.25,000/-
Interest Rate and Repayment period .
Beneficiaries receiving a loan amount of Rs.10,000/- and less than that have to repay the same in 10 monthly installments. They will have to pay an interest of 12% interest per annum along with the monthly payment of principal amount. Those who receive loan amounts ranging from Rs.10,000/- to Rs.25,000/-, should pay back the amount within a maximum period of 20 months. Based on their monthly income, they could decide on their repayment period keeping in mind the time frame. And, the rate of interest would be 15%. Processing Fee
1% of the loan amount is levied by ANTENNA Trust as processing fees and documentation charges.

Documentation
The SHGs which receive loans from AMCN have to make a Contract Agreement with the AMCN.
The Agreement consists of the following :
• The Agreement should be executed on a stamp Paper to the value of Rs.20/- .
• A Promissory Note.
• Applications requesting for Loans should be given by each member of the group.
• Age proof and address proof of the loanee should accompany the application.
• The President and Secretary of the NGO should recommend the request for loan from individual persons.
• SHG Resolution to the effect that the loan amount shall be repaid within the specified time along with the Interest amount .
• Signed Receipt for the amount.

Administrative Grant to NGOs.
The role of NGOs is very much important in running the Micro credit program of AMCN. ` They select and recommend credible SHGs, distribute the loan amount, and ensure that the SHGs repay the loan on time. For executing these services, Antenna pays an Administrative cost to the NGOs. 33.33% of the processing fees and Interest amounts is paid to the NGOs, after deducting the TDS, as per the AMCN program.

Guidelines for submission of reports
• The NGOs are to identify the credible and suitable SHGs. The number of SHGs, the number of total members, and the Loan amount requested should be reported to AMCN.
• Based on the report, Rating will be made.
• The rating will assess their ability to repay .
• On the basis of the rating, the loan amounts will be sanctioned.
• The details of principal amount collected, the processing fee, the Interest amount, the installment period, and the amount transferred to Bank must be reported to ANTENNA.
• The Administrative cost shall be calculated on the basis of the above specified amounts and sent to the Bank Account of the NGOs concerned.

Loan Liability (responsibility)
The liability of repayment of the volume of revolving fund the NGOs handle in their area rests with them. Only on the basis of their capacity to repay, the NGOs will be sanctioned the total amount of loans to be disbursed in their area.

Insurance
All beneficiaries who have received loan shall necessarily join the Life Insurance of India Scheme specifically provided for them.

Investment in Revolving Fund
AMCN has invested totally a sum of Rs.12 crores as Revolving Fund.

Funds requirement
Since the Micro Credit Program of AMCN has been very much beneficial to the Members of the SHGs, the demand for credit goes up month by month. Therefore, AMCN is approaching a number of agencies to secure additional funds on a minimum rate of interest so that ANTENNA may expand its program to cover more number of the poor .

service-1

+ 200,000 WOMEN
MICRO CREDIT BENEFICIARIES SINCE 2006
THANKS TO MICROCREDIT.

service-2

NEARLY 1M
MEMBERS
HAVE IMPROVED
THEIR LIVING CONDITIONS.

service-3

OVER
98%
OF LOANS REPAID.