Lifeline for Rickshaw pullers from S.E. Investments

Full loan payment leads to ownership

S.E. Investments Ltd., a leading financial services company with particular stress on micro credit, has announced asset-based loans for rickshaw pullers, full and timely repayment of which will result in ownership. 50,000 rickshaw pullers under the scheme are targeted over the next one year, with a cumulative disbursement to the tune of Rs 45 crores.

The total loan amount of Rs 9,000 will include Rs 1,500 towards a mobile connection (lifetime incoming free) and Rs 500 towards insurance. A comprehensive scheme based on daily repayment over 400 days (with one weekly off ), it covers not only the eventual ownership of the rickshaw, but also a mobile connection, social security in terms of membership deposit, accidental insurance, repairs, maintenance, and related financial training.

Elaborating on the scheme, Mr. Sunil Agarwal, Managing Director of S.E. Investments Ltd. said, “Our concept is in happy contradiction to the existing practice in which an equivalent amount of a daily rental fee is paid to rent the vehicle, possibly for the lifetime of activity, with no scope for ownership. This is a unique style of service delivery that addresses underlying causes of poverty through asset-based entrepreneurship development.”

All the loans will be extended to the beneficiaries through trusts. The scheme will be operational through a structure managed by individual manager trustees linking about 200-250 rickshaw pullers to SEIL. The manager trustee shall oversee the functioning of the service centers; envisaged as units for provision of first aid, repairs, refreshments, restrooms and welfare activities for the rickshaw pullers availing loans under the scheme.

SEIL provides the target community with the loan to own an income-generating asset, and allied services, thereby, promoting micro entrepreneurship among urban poor and rural migrants.

About S.E. Investments Ltd.
Headquartered in Uttar Pradesh, S.E. Investments Ltd. is an upcoming financial services company that emphasizes on micro credit. SEIL promotes microcredit to women and Self Help Groups (SHGs) in both urban and rural areas. By enhancing the employability and income of women, SHIL is alleviating the poverty and living conditions of people at both macro and micro levels. To fund its operations, SEIL has tied up with leading financial institutions of the country. Credit facilities are enjoyed from Punjab National bank, ICICI Bank, Small Industries Development Bank of India, IREDA and HDFC Bank.

The company has also invested in alternate energy in Karnataka and Rajasthan. It has installed a 2.4 MW Enercon make WEG at Chitradurga, Karnataka. Another 0.8 MW Enercon make WEG is set up near Jaisalmer in Rajasthan.