The people here are predominantly employed as small farmers, manual laborers, petty
shop owners or migration workers.
Although they have access to the grid, the power supply is irregular and at times not
available for days together.
Sivudu, a resident of Ingladhal, who is the welfare officer at the Backward Communities
hostel, Petaharivanam, decided to install solar-powered lighting systems for the students.
Selco installed a solar lighting system here with the help of Menda Foundation and a contribution
by the government.
Having experienced the benefits of a decentralized solar lighting system, prompted Sivudu to
recommend the same to help other villagers as well.
He contacted Selco's Sindhanur branch manager about his idea.
The Selco team carried out a number of site visits and interactions to determine the needs,
right conditions, financial conditions and paying capacity of the community members along
with local financing ecosystem.
Lack of credit history and low economic profile made it difficult to convince bankers.
This hampered the ability of these communities to access much-needed credit to purchase energy
solutions.
After several visits to various banks and financial institutions by the Selco staff,
Syndicate Banks, Petaharivanam branch, was convinced to lend to the community after the
bank manager visited the community for assessment.
In these days also some people are not having electricity, that's why we told them, okay
we will do this, and we asked for SB accounts, they told we don't have a single SB account.
We have given 22 loans in the month of March, after March if any loan was arranged, there
is no subsidy facilities there, I have taken 3 days time to complete all 22 applications.
Selco, in partnership with Manipal Foundation, formed a risk guarantee fund to de-risk lending
by Syndicate Bank to the community.
Formation of the risk guarantee fund helped the bankers overcome their perception of the
community being high-risk in terms of lending.
As and when these loans get completely repaid, the guarantee amount will be withdrawn.
For 22 applications I have received 66,000, 66,000 risk fund amount, they are doing not
only this for loan purpose, they are doing making transactions, they are doing savings
habits also, they are doing.
Today 22 houses are benefiting from the mechanism devised by Selco for clean, reliable lighting.
This is the first time that any bank has loaned to this community, enabling their inclusion
in the formal financing system.
This further underlines the impact dimension of financed solar home lighting systems beyond
just improved lighting conditions.
