Should Micro-Loans also be part of Vahdam Teas and Byju’s Tie-up?

 

Reference Article for this Blog Post - Vahdam Teas ties up with BYJU’S for digital learning of tea estate workers’ children @ https://www.financialexpress.com/industry/vahdam-teas-ties-up-with-byjus-for-digital-learning-of-tea-estate-workers-children/2092364/

 

Byju has tied up with multiple finance companies to enable parents to take loans for Byju’s courses. Capital Float and Bajaj Finance are amongst the well-known finance companies Byju has partnered with.

Capital Float: Way back in 2017, Capital Float collaborated with India Stack started to disburse micro loans to kirana stores. The process is completely paperless with no human intervention. The loans are disbursed within90 seconds of the loan request. Algorithms drive the underwriting process.

This means, Capital Float has the expertise in microloans. Only the target audience is bit different.

Reference: Rs 3cr in 3 days and Rs 25,000 in 90 seconds, Capital Float is cutting out that troublesome wait for business loans dt. 17th Apr 2017 @ https://yourstory.com/2017/04/capital-float-2

 

Bajaj Capital: Bajaj Capital per-se does not have a Microloan product. Depending on it’s business plans with the Tea Industry, Bajaj Capital may take a decision to develop the necessary processes for Tea Estate Worker’s Microloan.

In May 2020, Vahdam Teas planned an $100,000 interest-free loan programme for partner estates affected by the Covid19 Pandemic.

Through this experience, Vahdam Teas can encourage it Financial partner institutions to design a suitable Insta Loan Product for Tea Workers of it’s partner estates.

The target audience can easily be identified. All parents of children enrolled in Vahdam Teas TEAch Me program are the target audience for the proposed Insta Micro Loans.

Reference Article: Vahdam Teas plans $100,000 interest-free loan programme for partner estates @ https://www.thehindubusinessline.com/economy/agri-business/vahdam-teas-plans-100000-interest-free-loan-programme-for-partner-estates/article31575179.ece

 

Vahdam to empower tea estate workers’ children through TEAch Me initiative @ https://www.thehindubusinessline.com/news/education/vahdam-to-empower-tea-estate-workers-children-through-teach-me-initiative/article32702720.ece

 

Vahdam Tea 'TEAch Me - 1% for Education

Quote

1% of our revenue is directed towards the education of our tea workers' children In India.

Every parent wishes for their progeny to have a better life than theirs.

Vahdam Teas simply wishes to honor this aspiration.

Unquote

 

Vahdam Teas Insta Micro Loan for Partner Estates Tea Workers

Mandatory:

Bank Account – Tea Workers

Disbursement of weekly monetary wages to the respective tea worker’s bank account – Tea Estates

Individual Tea Workers Personalised App Account

 6 months weekly wages credit to the respective tea worker’s bank account

Brief Process:

The APP can be operated directly by the Tea Worker or a supervisor can operate on behalf of the tea worker.

Weekly wages credited to the Bank Account

After the 6 months waiting period, average of the total credits is calculated

Limit Creation: Loan Limit of 4 times the average credits auto updated in the tea worker’s App account.

Disbursement: Tea worker depending on his/her requirement’s request applies for the loan disbursal.

The requested loan amount is credited to the tea workers bank account.

Repayment – 12/18 months as decided by the credit algorithm.   

Recovery – Loan Tenor in weeks divided by the Loan Amount and the weekly repayment amount arrived. The Tea Estate wages offers deducts the weekly repayment amount from the worker’s gross wages and transfers to the respective tea workers loan account.

Interest: Market rates

Default handling: Each Loan can have 1 or 2 tea workers as guarantors depending on the credit committee decision.

Security for the microloans – Weekly wages disbursed by the tea estate management

Microloan ticket size – INR 3000/- onwards.

The missing Link - Multilingual App  

Not a big deal to develop

In fact, a hackathon can be run by Byju and Vadham Team for the multilingual App