1. Branch Service Area Profiling Sanjay Nagar Study Conducted by MI Team - Ram Jayakumar, WM - Gopalakrishnan, WM

2. Contents Objective and Approach Data Sources Service Area Profile Infrastructure Financial Educational Health Economic Activities

3. Objective and Approach Objectives To understand and estimate the size of the economic and financial system of the branch service area To profile the branch service area in terms of various businesses, income generating activities and their existing channels.

5. Semi Structured Interviews– 40

6. Group Discussions – 5

7. KGFS customers - 3

8. Farmers – 1

9. Laborers - 1Interviews Break-up

10. Service Area Profile Villages covered: Sanjaynagar Veerakuruchi Enathi Aladikumulai Narwazhkollai Surankadu Total population – 10530 No. of households - 2600

11. Infrastructure

12. Financial Infrastructure Within the service area Credit Co-operative Society - Sanjaynagar Post office Self-help groups Money lenders LIC agents MFI-GramaVidiyal Near service area* Nationalized banks SBI, Indian Bank, Indian Overseas Bank, Syndicate Bank, Repco Bank Private finance companies India Bulls, Muthoot Finance, Shriram chits, KumbakonamParasparaNithi Western Union *Distance - Located at Pattukottai which is about 6km from the branch

13. Credit Co-operative Society Distance from KGFS branch – 0.5 kms Total number of members – 1200 Interesting product feature for crop loans No interest charged on loans if repaid within 8 months If the loan extends beyond 8 months then, interest rate of 12.5% applied on declining balance from day of disbursement Average loan sizes Crop loan – Rs 25,000 Jewel loan – Rs 20,000 Fertilizer loan – Rs 10,000 Total Loan Portfolio – Rs. 260 lakhs

14. Self Help Groups Active groups - 80 Members per group - 20 Savings Compulsory monthly savings – Rs 100 Total savings – Rs 19 Lakhs per annum Total estimated balance – Rs 51 Lakhs Average balance per customer – Rs 3120 Loans Average loan size per group – Rs 70,000 Total Portfolio – 56 lakhs Interest rate to members – 24% p.a. diminishing Duration 2 years

15. Post Office Situated in Aladikumulai (1 km from the branch) Approx 50 money orders received per month with an average remittance of Rs 5,000 Total savings and Fixed deposits – 1.38 lakhs

16. Banks and Other Financial Institutions Commercial Banks (SBI, Indian Bank, Indian Overseas Bank, Syndicate Bank, Repco Bank) Education loan, Tractor loan, Home loan, Savings & Remittances currently availed by people from the service area Around 20 people from Sanjay Nagar have a banking relationship with banks Other Financial Institutions (India Bulls, Muthoot Finance, Shriram chits, KumbakonamParasparaNithi) Most branches in Pattukottai and operate through agents Products - Tractor loans, Home loans and Education loan. Average tractor loan is Rs. 2 lakhs, home loan is of 3 lakhs and education loan of Rs. 2.5 lakhs. Interest rate is 16%+ flat p.a.

18. Follows Grameen model; formed 20 groups with 20 members each

20. Summary of Estimated Financial Market *All figures in Rs. Lakhs *All figures are approximate

23. Pharmacist prescribes medicines for minor ailments

25. 1 doctor from Pattukottai and an assistant.

27. Income Generating Activities For around 78% of the households primary source of income is agriculture Around 7% of the households depend on remittances from abroad

29. MGNREGS pays Rs.100/day for relatively less work compared to hard work in the fields

30. All lands are irrigated through wells and some get canal water.

33. About 400 Expatriates in Gulf, Malaysia and Singapore.

34. Average remittance per person per month is about Rs. 9000

35. Major channel for remittance - Western Union and nationalized banks.

36. Migrants (Inland)

37. About 75 migrants working in Kerala, Maharashtra and A.P.

38. Average remittance is around Rs. 5000 per month.

41. Coconut businesses provide employment for about 40 people in the area and the total turnover is about Rs. 1.5 crores.