Project Dates
Implementation start: Oct 07
Project Photos
Project Details
This project is to provide LPG connection financing to the members of Chaitanya MFI. Till the end of October 07, Chaitanya had 105 members. Of this 30 members require LPG connection financing as of end October 07. This need is expected to rise. Although there is a huge demand for LPG, supply of new connections is not always available. The local dealer releases small no. of connections once in a while. For customers to avail this window of opportunity they need to have the financing readily available to pay and get it. Loans from banks are generally slow and within the time the loan is sanctioned, the window of opportunity is lost.
Chaitanya MFI will give its customers, individual loans of size Rs. 3000 for a period of 50 weeks charging an interest of 15% flat. As of end October 30 customers are already existing. Within the next one month, another 20 are expected to be given LPG loans. In the next year another 50 are expected to be given LPG loans.
Project Financials
http://spreadsheets.google.com/pub?key=p
Project Size Details
This project is LPG connection financing for 50 customers in the first year and another 50 customers in the second year
Project Impact Details
The project will provide LPG for cooking to 100 households in 2 years. For the 100 households they will get a clean and convenient option for cooking.
Estimated Pre-investment Costs
Total Costs – Rs. 4835
S3IDF costs
Personnel costs – Rs. 835
Other costs – Rs. 2000
Total S3IDF costs – Rs. 2835
Partner costs
Personnel costs – Rs. 2000
Other costs
Total Partner costs – Rs. 2000
Returns for S3IDF Revolving Fund
8% flat annual returns;
15% actual returns
Project Indicators
Investment indicators:
Investment size – Rs. 150000
Revolving fund – Rs. 150000
RF to investment size –1
Cost Indicators
Total pre investment cost – Rs. 4835
Pre investment cost/Investment Ratio – 3%
Impact indicators
No. of direct beneficiaries – 100 (over 2 years)
Investment size /no. of beneficiaries –Rs. 1500
Project Risks
Project Owner/operator risk:
The operator is Chaitanya microfinance. This is a new microfinance institution. So there is a risk associated with a new comer. However, Chaitanya has done multiple projects with S3IDF and their repayments have had no problems. Hence this is not such a big risk.
Market risk: There is no market risk
Technology risk: There is no technology risk
Portfolio risk: There is no portfolio risk
Mission risk: There is no mission risk
Partners
Chaitanya Foundation, Indane dealer at Chalakere
