13/09/2017
Conversation between Varam CEO, Mr. Joby and Customer CEO visited Thiruvallur branch and met few of our customers (Group Name – Toll get perumail Kovil). After seeing a smart phone in the hand of a customers, Joby enquired if they are using internet. One of them had an app HOTSTAR in the mobile to watch serials and movies. Joby then tried to showcase the newly launched AEPS- Micro ATM services to customers (Customer was using JIO connection
Mr Joby: How often do you go to bank? Customer: We don’t go to bank very often unless a loan got disbursed or LPG subsidy comes. We don’t go there to deposit any money and we don’t even know whether the subsidy has come or not.
Mr Joby: For depositing money what you do?
Customer: We have no deposits and we hardly save any money. We don’t even think about going to bank unless we have at least Rs.5000 to deposit into the account. Banker also don’t like when we go for small amount deposit or to enquire the account balance. Mr Joby: Now you can deposit your small money in your own bank account at your door step through Varam staff with our micro ATM services. Joby opens the AEPS module in his tab and showed them that now banking has come to them Customer: How much will you take as minimum deposits?
Mr Joby: We can take even 1 INR. We have no problem like bankers with small amounts and you can also check your bank account to see if your subsidy of 200 INR have come or not.
Customer: Sir, but your staff comes only once in a month and it will be good if we can do it every day in our own village.
Mr Joby: Just the way internet is helping you to watch movies sitting at your home through your mobile, you can now do banking through mobile at your doorstep.
Customer: (Looks very interested) How soon can we start, sir?
Mr Joby: We can immediately start with our staff next month and we will try to look for a partner in your village itself so that you can save, withdraw and check balance enquiry every day in your village itself.
Customer: That will be great and we will then start saving money for future.
Mr Joby: Do you have any complaints about Varam?
Customer: (The lady who had taken a loan to buy a cow came forward and said) We have no complaints about your service but have one complaint about your products. You are giving only small group loans. My one cow cost me about 40k. And it is giving me 5lt of milk every day. I sell this milk on 30 INR per Ltr. This is giving me good income and I want to buy one more cow to increase my income but your company does not give higher value loans
Mr Joby: You are right and we will soon start high value loans for needy
customers: Now what you do when you need more money? Because all MFIs are giving only small group loans.
Mr Joby: You are right and we will soon start high value loans for needy
customers: Now what you do when you need more money? Because all MFIs are giving only small group loans.
Customer: (Everyone combines and said) we are left with no other option but go to the money lender and take loans on high interest Rate (Two member from the group had actually borrowed from money lender)
Mr Joby: How much do you pay to money lender?
Customers: (Who took loan from money lender) 5% pm of the loan amount
Mr Joby: Do you know what the ROI is?
Customer: We know it’s very high. Most of the time we are only able to pay the interest amount only and the principal will be still outstanding.
Mr Joby: I am thinking, these small group loans are useful to you, but what is your opinion on this? If you are running Varam, what will you do differently for the people like you? All our customers are like you who are struggling to make a living.
Customer: Sir, these small group loans itself are very useful to us. In the absence of this, we will have to borrow even this from money lenders at high interest rate. If we are running VARAM, we will start giving high value loans to needy customers like the way money lender is doing. We can give you security for individual loans.
Mr Joby: I will be very happy to give high value loans as that helps my business. But how can I know whether you can repay the loans or not? Do you have any suggestions?
Customer: We have the income. You can see that we are earning
Mr Joby: As long as you do everything in cash, it is difficult to prove your earning capacity to anybody. According to you, you are selling 5 ltrs of milk per day and your customers paying you 30 INR per ltr. But all your receipts and expenses are in cash and therefore I can’t see any proof of your income. I can only trust you. But now with the help of AEPS, you can start saving regularly as per your income. You can also ask your customers to pay you to your bank account as you can withdraw whenever you want. When you do this for some time, your bank account start reflecting some part of your income. Your bank statement would be your new income proof which will enable you to get higher loans.
Mr Joby then explained to them about the need of savings. Saving is critical for you for 2 reasons. 1. You need your own money to meet emergencies like hospitalization etc. 2. As all of you lack a formal income proof for your earnings, regular banking will help you to build an income proof.
We can help you to
Save for your children’s education
Save for daughter’s marriage
Save for construction of your own dream home
Our Varam app will help you as to how much you should save monthly to fulfill your dream.
