Grameen Koota Financial Services Pvt. Ltd. (Grameen Koota) was born out of the need for timely and affordable credit to India's poor and low-income households.
Grameen Koota was visualized by Mrs. Vinatha M. Reddy in December 1996, inspired by the book ‘Give Us Credit’ by Alex Counts, President and CEO, Grameen Foundation USA. The book detailed remarkable stories of Bangladesh's poor who raised themselves out of poverty through the use of micro-credit during the microfinance movement, spearheaded by Nobel Laureate Professor Muhammad Yunus.
Founded in May 1999 with the name Grameen Koota, as a project under the T. Muniswamappa Trust (TMT), an NGO in South Bangalore. Grameen Trust, Bangladesh provided seed capital funding to replicate Grameen Bank Bangladesh microfinance model to TMT.
Grameen Koota adapted the Grameen Bank's group lending methodology of microfinance to the Indian setting and was launched at Avalahalli, in outskirts of South Bangalore. It offers collateral-free loans as well as other services to women from poor and low-income households. Creation of equal opportunities and inclusive development of both urban and rural poor is what inspires the MFI to strive ahead. These loans help the clients raise their standard of living and consequently help break themselves and their families out of poverty. Grameen Koota steadily groomed a class of mature and financially literate women entrepreneurs, who began to outgrow the group lending model.
Grameen Koota targets women because they are the most marginalized section of the society, who makes up an integral part of the family, community and country's socio-economic environment. It has been observed that women tend to use resources more productively than men, so Grameen Koota tries to help improve women's financial management and increase their participation in the family's and the community's development.
In 2007, the microfinance activities of Grameen Koota was transferred from NGO to a well-regulated and registered Non-Banking Financial Company (NBFC), which subsequently got reclassified into a regulated and governed Non-Banking Financial Company - Micro Finance Institutions (NBFC-MFI) entity by Reserve Bank of India (RBI) in 2013. Grameen Koota continues to be the operating brand name of Grameen Koota Financial Service Private Limited.
Grameen Koota offers a multitude of both financial and non-financial products and services to cater to every life cycle need of its clients. Grameen Koota products are subject to periodic modifications based on the feedback from clients and inputs from the staff.
Our financial services include :
- Microcredit loans, for Income Generation, Family Welfare, Emergency, Home Improvement & Home Constructions. The Income Generation loans support the funding need of micro-enterprises. The family Welfare loans support the need of education, medical needs, solar lights, cook stoves, celebration of festivals etc., The House construction/ improvement loans support the funding needs of the clients to repair, extend & construct houses, toilets, water connections etc., Grameen Koota offers an unique loans product called Emergency Loan which can be accessed by the clients during their meeting for any unplanned needs.
- Micro insurance services for covering Life insurance, Cattle Insurance & Health insurance, by partnering with insurance companies.
- Pension: Grameen Koota has tied up with PFRDA as an aggregator and provides pension services to its clients.
The non-financial services consists of training, education and awareness creation programs such as Enterprise skill development; Business development services; financial literacy promotion; basic health/nutrition education; Basic medical services; Special medical services for women and children; Leadership training for women and Women's rights/gender issues education.
Over the past years Grameen Koota has evolved as a major player in the Micro Finance Sector and widely recognized as one of India’s leading Micro Finance Institution.