UMM Target Clientele
UMM has institutionalized its microfinance program through Self Help Group method. It has developed comprehensive Business Plan for microfinance on-lending program. UMM works with valley approach in hills. It has got altogether 38 Valley Level Associations. As a growing microfinance institution UMM has made considerable progress in the microfinance operation in terms of its increased outreach and portfolio. UMM has been able to promote 1140 SHGs having 10105 women members, with cumulative saving of Rs. 145 Lakhs as on 31 May 2014.
UMM generally lends to women clients who have the following characteristics -
Residing in rural, remote, and hilly areas falling under UMM's operating areas, and are from various communities.
In the age bracket 25-65 years.
Regular members of SHGs . SHG should be fully functional with strong internal discipline (in terms of regular savings activity, internal lending, and maintenance of documentation). Loans to any non-member of SHG will be approved by the Board on ad-hoc basis.
Directly engaged in a income generating activity such as agriculture, agri-allied activity, dairy, sericulture, spices, etc. Members may also be engaged in seasonal activities such as establishing small shops at the time of pilgrimage festival.
Educational qualifications falling between school dropout to university graduate.
Each of the features in the above list is designed to maximize the power of peer pressure and to reduce the risk of moral hazard, the risk that our borrowers will not repay. By lending to homogenous groups, each with equal stature and influence over the other, the power of peer pressure can work. Repayment is also more assured if our clients are physically able and are rooted in the local community.