Responsible Lending

SAIJA is a ‘Responsible Lender’ that ensures that best practices in consumer protection are followed throughout its products and services, as proposed in various best in class frameworks.

Saija’s lending methodology places strong emphasis on establishing the customer’s capacity to repay and avoiding over-indebtedness. Capacity-based lending has been a trademark of Accion International and its partner institutions around the world and has been successfully adopted by Saija. Multiple lending and over-indebtedness are becoming a concern in the Indian micro-finance space, and various initiatives including the adoption of a code of conduct for responsible lending and the creation of a credit bureau for micro-finance institutions are underway.

Saija takes various initiatives to ensure that customers are adequately supported and protected by doing the following:

  • Adoption of the responsible lending principles of the SMART campaign
  • Adoption of a Code of Conduct derived from the Compliance with the Codes of Conduct of Micro-finance Institutions Network (MFIN), an association of Indian micro-finance NBFCs formed in early 2010 and Sa-Dhan, the Association of Community Development Financial Institutions.
  • Information disclosure on loan features to forums such as MF Transparency
  • Reporting social performance on the MIX (Micro-finance Industry Exchange)
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