Product Flip Chart

RISK COVER

SAVINGS & INVESTMENTS

ACCESS TO CREDIT

FINANCIAL SERVICES REQUIREMENTS OF RURAL HOUSEHOLDS

Lets look at some household situations where availing our products can help

REMITTANCES

SAVINGS

&

INVESTMENTS

MMMF

Housewife and Daily wage earner

Both myself and my husband get daily wages.Every month, we do manage to save someamount but so far we have just been puttingaside the amount in a box in the house. Itdoes not feel safe to keep it at home. It wouldbe better if we could put it in some bank, butthe bank too is located so far from our placethat we would find it very inconvenient.

Do we have a solution for such cases of

REGULARSMALL

SAVINGS?

… YES … OUR MMMF PRODUCT IS AN IDEAL CHOICE

SOW TODAY

REAP TOMORROW

What is MMMF ? MMMF is a regular savings product

Types of transactions● Initial investment ● Subsequent investment● Redemption ● Closure of account

Minimum investment amountThe minimum amount for all transactions is Re.1/- and in multiplesof 1/- thereof

Frequency of investment You can deposit whenever you have any surplus in hand. There is nolimit to the number of investments

Withdrawal facilityYes, the amount in the account can be withdrawn at any time.You can then again re-deposit as and when you have some surplus

RequirementsPan Card - KGFS facilitates issue of PAN card for its customersPower of Attorney agreement

Rate of return There is no fixed rate of return. But historically, the product has beenearning higher than a regular savings bank account

Where is my money invested The amount is invested in Prudential ICICI Liquid Plan which in turn invests in government securities and other debt instruments

Account Status You can get the status updated in your Passbook whenever you visit the branch. Quarterly statements are also provided

MMMF PRODUCT FEATURES

RISK COVER - INSURANCE

I always worry about what will happen to my family back home ifsomething bad were to happen to me during these strenuouswork at the construction site. Thankfully this work is only for 40days and it pays so well I cant say no to it. I can only be extracareful and pray for God to be with me…..

I have been working as a milkman supplying milk in my village as well as in a couple of neighboring villages. Things had been going

smoothly till last month when 2 of my cows died. My earnings have drastically dropped. To buy another cow, I might have to

probably pledge my wife’s jewels……

YOURSELF

LIFE INSURANCE

PERSONAL ACCIDENT INSURANCE

YOUR HOUSE /

SHOP

PROPERTY INSURANCE

YOUR CATTLE

LIVESTOCK INSURANCE

YOUR CROP

CROP INSURANCE

INSURE

PERSONAL ACCIDENT

INSURANCE

Why is PAI needed ?Provides financial cover to life and disability of client due to accident

Age limit for cover Between 18 – 70 years of age

Sum assuredRs. 25,000/- Rs. 50,000/-Rs. 75,000/- Rs. 1,00,000/-

Premium amountRs. 10/- Rs. 20/-Rs. 30/- Rs. 40/-

Validity of cover Is valid for 1 year from date of receipt of premium

Medical requirementNo medical tests required No information on pre-existing diseases required

Maturity of policy without any accident event

There is no maturity value. This is for pure risk cover

PERSONAL ACCIDENT INSURANCE

PRODUCT FEATURES

INSURANCE - PAY A SMALL PRICE TODAY

FOR A MORE SECURE TOMORROW

Injury results in … Coverage

PERMANENT TOTAL DISABILITY (PTD)

Death 100% of sum assured

Both hands or feet or sight 100% of sum assured

One hand and one foot 100% of sum assured

Either hand or foot and sight of one eye 100% of sum assured

Hearing of both ears 100% of sum assured

Speech 100% of sum assured

Either hand or foot (loss or loss of function) 50% of sum assured

Sight of one eye 50% of sum assured

LIVESTOCK

INSURANCE

LIVESTOCK INSURANCE

PRODUCT FEATURES

Why is Livestock Insurance needed?

Provides Insurance to cover death oflivestock

Purpose Safety net for the client in case of death of cattle• Help in coming out of the shock • Support to the client to buy asset again

Eligible category All Members of KGFS

Maximum age of animal 8 years

Minimum age of animal 2 years

Age proof Not Needed

Insurance provider HDFC Ergo

VET services De-worming and Vaccination done twice a year byVET to cover any health risks

Claim settlement Sum assured paid to client within 72 hours ofraising claim

CATTLE VALUE

PREMIUM AMOUNTS

SUM ASSURED

Value as determined by the Vet at the time of tagging or declared by the Customer, whichever is lower

3 Year Policy 7% of value of cattle + ST + Rs. 400 for VET services

2 Year Policy 5.4 % of value of cattle + ST + Rs. 310 for VET services

1 Year Policy 2.9 % of value of cattle + ST + Rs. 220 for VET services

Sum insured = 85% of value of cattle on death, up to a limit of Rs.25000

PREMIUM PAYMENTS

UPFRONT PAYMENT INSTALLMENT PAYMENT

Pay Premium and take receipt • Make initial payment• Pay balance through EMIs• Monthly EMI - 3 or 6 months• Weekly EWI - 12 or 24 weeks• Minimum Loan amount - Rs. 1,000/-• Maximum Loan amount - Rs. 5,000/-• Loan amount = 85% of premium

Here is a cow insured by KGFS.The RFID Ear Tag helps inidentification of the Cow at thetime of claim settlement .

ACCESS TO CREDIT

JEWEL LOAN

Head of family planning for house repair

I don’t think the roof of my homewill last another monsoon season.My child had bad fever toobecause of the rains. I must thinkof repairing my roof – make apucca roof. I plan to pledgejewels, & take a loan. But I mustdo it quickly. I just cant find thetime! The monsoons will come bynext month…

You could have many such situations where you need immediate cash

The Jewel Loan offered by KGFS gives you instant cash

against your jewellery at affordable rates

What does it offer ?An emergency loan against pledge of your goldjewellery at affordable rates and minimumprocessing time

Purpose of LoanYes, the loan can be taken for any purpose - forconsumption or for further production

Loan amountYou can take up to 80% of the market value of thegold. The maximum amount which can be given is Rs.50,000/-

Loan tenureYou need to repay the loan within a period of 1yr.Renewal can be done with necessary terms &conditions

Repayment modeYou can choose to repay as and when you havesurplus funds. Prepayment of entire loan can be done

Return of jewelsWe shall return the jewels as and when completerepayment of the principal and interest is done

JEWEL LOAN – PRODUCT FEATURES

ACCESS TO CREDIT

- JLG

Housewife wishing to put her extra time to productive use

I am just sitting at home wasting time. My children havegrown up now. Because of my aged parents, I cant findwork out of home too. The best option is to buy somelivestock – either a cow or a pair of goats. We had sold offour cows sometime back but now I think is a good time tobuy one with a loan. I can pay back the loan in installmentsby selling the cow’s milk.

I really want to get myself educated so that I can get agood job and get my family out of poverty. Although Istudy well, I think the biggest problem will be thecollege fees. Where can my father get so much moneyto pay for it? I don’t want all my mother’s jewellery tobe pledged for this. Take a loan from informal sourcesand we are indebted for life!

Young aspirant worried about education expenses

We are neighbors and good friends too. Our husbandsare employed in fields in the neighboring village. Bothof us want to spend our free time productively. We arethinking of buying 2 cows each and earn some moneyby selling milk. We would need a loan for this. We havealready pledged our jewels for a loan to build ourhouses. We don’t have anything to offer as Collateral …

The JLG loan at KGFS offers access to finance

without requirement of any collateral

All that we need is a group of

members who come forward jointly

for a loan and are ready to share

the responsibility of repayment

What does it offer ?The JLG loan is a loan given to a group of memberswho are jointly responsible / liable for therepayment of the loan

Loan PurposeYes, the loan can be taken for productive as well asconsumption activities.

Loan amountA maximum of Rs. 15,000/- can be given in the first loancycle

Loan repaymentThe loan needs to be repaid in 50 equated weeklyinstallments

Interest calculationThe interest is calculated on diminishing balance. Hence ,with every repayment, the interest component keepsfalling .

Loan prepaymentYes, you can repay the loan in case you get any surplusfunds.

Need for collateralNo. No collateral is required for this loan. All that we needis the group guarantee.

Can I take another loanonce I have repaid the firstcycle ?

Yes. You will be eligible for the 2nd loan cycle once youhave completely repaid the first loan cycle .

JLG LOAN – PRODUCT FEATURES

Some more points to remember …

GROUP CHARACTERISTICS

Members of the group:

• Need to be of same gender • Must NOT be from same family• Should be neighbors • Women should be married* • Should be between 18 & 60 yrs

A 3 day Compulsory Group Training – CGT will be held for all members

A Group Recognition Test – GRT will be held after the CGT to test the understanding of the product features by the members

* Spinsters above the age of 35 yrs are allowed

ACCESS TO CREDIT

- RETAILER LOAN

Kirana store owner with an aspiration to

expand business

I wish I had some extra money tostock up my store. Diwali is comingin a month’s time and I am expectinga big increase in sales. My business istoo small. To expand it, I must haveenough money to increase thenumber and variety of goods sold atmy shop. Today, there are so manyproducts being advertised on TV, itsdifficult to keep track of what peoplewant…

Retail traders like these need finance mainly for 2 major reasons

To buy stock / working

capital for day to day

business requirements

To expand business by :

• Setting up shop in another area

• Renovating existing shop

• Diversifying into a new line of business

Working Capital Loan

Term Loan

RETAILER LOAN

Working Capital vs. Term Loan

WORKING CAPITAL

• To manage daily operations of business

• Short Period requirement

• Quantum of amount normally low

• Multiple disbursement and repayments within sanctioned limit as per the requirement of the customer

• Interest collected monthly and principal at the end of tenure

TERM LOAN

• To expand existing business / diversify the activity

• Long term requirement

• Quantum of amount normally high

• One time disbursement

• Both interest and principal is collected as equated monthly instalments.

Nature of Loan

Given to individual retailers based on their cash flow or working capital requirement

Purpose of LoanWorking Capital : To run the existing businessTerm Loan: To expand, renovate or diversify

Loan Amount Maximum up to Rs. 50,000/-

Loan Eligibility

Men & women of >= 18 years of ageMust be running the business activity for last 2 yearsOwnership of residential or commercial property in the service area

TenureWorking Capital: 1 year and can be renewed after thatTerm Loans: 6 to 24 months for weekly & monthly repayment

Maximum up to 1 year for daily repayment

Security Third party guarantee

RepaymentWC: Interest paid monthly and principal as per convenienceTL: Installments in daily/weekly/monthly installments

Pre-payment Full Pre payment is permitted without any penalty

RETAILER LOAN – PRODUCT FEATURES

PURCHASING

GOLD

Father of girl

My daughter would be of marriageable age inanother 10 years. I have to start saving moneyfor the marriage. One of the biggest expenseswould be to buy gold jewellery. Gold prices havebeen rising over the last few years. I don’t knowhow expensive it would become at the time of mydaughter’s marriage. I think its better to startaccumulating gold in small quantities from now …

KGFS offers you 24 carat gold coins in

association with TITAN Industries

KGFS offers 2 ways of investing in Gold

PAY CASH & BUY GOLD

OPT FOR A GOLD PLAN

Offers 99.99 % purity

Gold coins offered by KGFS are 24 carat as

against 22 carat of gold jewellery

Safety , liquidity and profitability of investment

Coins can be converted to jewellery at any time

What does the Gold Planoffer ?

The Gold plan helps you to take a loan andbuy gold at today’s market rate . It protectsyou from the inflation in gold prices

Minimum quantity to avail gold accumulation loan

Yes – the minimum quantity is 4 gms

Down paymentYes – 5 % of the value of the gold on the date ofpurchase plus transaction cost rounded off to highermultiple of Rs. 10/-

Loan amount The maximum loan amount is Rs. 50,000/-

Interest calculationThe interest is on diminishing balance. So withevery repayment, the interest component keepsreducing.

Loan tenure The loan has to be repaid within one year

Repayment mode The repayments are in Monthly / Weekly mode

Loan prepayment Yes – both full & partial prepayments can be done.

Installment amount Minimum of Rs. 100/- for weekly / monthly mode

GOLD PLAN – PRODUCT FEATURES