Co-op bank promotes nomadic tribes

The Kalupur Co-operative Bank in Ahmedabad offers accounts to members of nomadic tribes, who have no permanent address or proof of income, on the basis of trust.

It is the only independent bank in the country to issue loans to members of the Vimukta Jatis – who have taken up around 600 of its 4,500 accounts dedicated to microfinance.

Since 2006, the bank has issued loans of Rs 50,000 to 100 nomadic tribals to purchase houses under a government scheme, and disbursed loans of a maximum of Rs 25,000 to others to expand their small businesses at a 10% rate of interest.

The bank can issue loans on trust because it has built up long-term relationships via the Vicharata Samuday Samarthan Manch (VSSM), an Ahmedabad-based organisation that works with nomadic tribes.