Products and Services
- Income Generating Loan
- The Emergency Loan
- Insurances
- Savings
Income Generating Loan
In the initial growth period, SONATA only offers one basic loan product, which is strictly restricted to income generating activities. During the first cycle and on average, clients apply for a loan of a maximum Rs. 8,000 (the minimum amount is Rs. 2,000). During each cycle thereafter, the client has the option of applying for up to 120% of the previous loan amount. The basic loan is repaid in equal weekly installments at "center meetings" held in the local communities. Prepayment of principal is possible but only if the client settles the entire balance of the principal outstanding. The Centers are the heart of SONATA operations as this is where all transactions take place: loan application, initial approval (from group members), and collection of the deposit slips.
The Emergency Loan
This product will start being offered to clients during the course of the next fiscal year. The emergency loan is designed to meet events that could put the continuity or effectiveness of the income generating activity at risk. To be able to access an emergency loan, the client must present a good rating in terms of credit discipline. Like the basic loan, the emergency loan must be approved by all the associates in the group. The emergency loan will be granted for a term of 25 weeks with weekly payments and the maximum loan amount is Rs. 2,000.
Insurance
As per RBI guidelines insurance premium can not be routed through SONATA's Book. As the insurance facility is important to clients, SONATA has established collaborations with local insurance providers, which provide insurance products to SONATA's clients.
Savings
Though SONATA is an NBFC and can, upon further clearance from the Reserve Bank of India accept public deposits, it does not intend to accept public deposits in the foreseeable future. However, SONATA acknowledges that this is a highly important service in the development of poor families. For this reason, SONATA is exploring various possibilities to provide savings facilities to its clients.
