Nayer Fatemi one of the most successful Managing Directors of Al khair co-operative credit society during his tenure the company recorded highest growth figure. He has a vision to liberate the underprivileged section of society through financial help on no interest basis instead on profit sharing mutually agreed upon. He envision to save the community from the cold blooded money lenders who charges even 100% interest. Saif Alam Siddiqui of Maeeshat interviewed Nayer Fatemi. Here is the excerpt.
Maeeshat: First of all tell me about Al khair co-operative credit society.
Nayer Fatemi: Al-Khair was established in 2002 under Co-operative Act of Government of India. Al-Khair run on the principle of benefits of all, and no exploitation at all. It’s more like an interest free micro finance institution which facilitate the people to get rid of cold blooded money lender who charges even more than 100% interest and trap them in enslaving the web of debt. We does not give interest to the investors instead we share profit. Al-Khair Co-operative Credit Society Ltd is a Peoples Co-operative in true sense. Its main objectives are to uplift the underprivileged demography of society through mutual cooperation. We facilitate small savings of small income group as well as gives loans for small business or to those who are temporary in need, as it’s become difficult next to impossible for them get loans from commercial banks.
Maeeshat: Let us know about the Operation model of Al khair co-operative credit society.
Nayer Fatemi: Monitoring, follow up, motivation are the key pillars of operations and are the key to success for any financial institutions. There is vast difference between working with corporate private sectors and cooperative model in cooperative model decisions are made in Annual general meetings while in corporate decisions are made through strategy. We offer interest free services operates on fully cooperative model where it’s very easy to get membership one will have to purchase at least 10/- shares of society of Rs.10 each and through donation. One may purchase more than 10 shares if he/she can afford. Every member is the stake holder in the society and has to cooperate in meeting the operation expenditure of the society through nominal service charge. By becoming member a member can avail innumerable benefits offered by the society.
Maeeshat: Let us know about products and services offered by Al khair co-operative credit society.
Nayer Fatemi: We offer two types of products Deposits and loans in deposits we offer five modes.
1. Daily Deposits Account: Members can deposit small amount daily on their door steps through our field executive.
2. Sahyog Account: Philanthropist can deposit big amount for minimum lock in period of six month or more. So that these amount can be given to the needy.
3. Amanat Accoun: Its like a Saving Account members can deposit or withdraw any time.
4. Haj Account: Members can depoits their money in special account and withdraw at the time of Haj.
5. Child Account: This type of deposits is to inculcate the habit of saving amongs children.
In Loans we offer through five models. Loans is given to at least three month old members.
1. Demand Loan: Loans are given for personal necessities for a given period an the basis of security in kind i.e. Ornament, Bank Cheque etc.
2. Short Term Business loan STBL: loans are given for seasonal business for a period of six month on the basis of profit sharing of 70:30 ratio.
3. Mid-term Business Loan: loans are given to permanent business for a maximum period of 8 month on profit sharing ratio.
4. Business Loan: Loans are given to reputed and tested entrepreneurs for one year period of profit sharing ratio.
5. Morabaha Loan: Member can get consumer goods after paying 25% of the total price and will get the facility of paying back rest amount in 12 Equated monthly installments.
Maeeshat: Let us know about your journey of being a journalist to a banker with reference to financials prosperity of Al khair co-operative credit society.
Nayer Fatemi: I am associated with Al khair since 2007 as special invitee and in 2013 joined full time Managing Director. Since my joining society experience a healthy financials every year the society accounts register growth in figures. Now let me explain you figures before my joining the total deposits in the financial year 2012-13 was Rs. 107,344,469 and after may joining in 2013 this figures increase to Rs.162,918,339 for financial year 2013-14. As the tradition of growth continues followed by Rs,240,333,970 in 2014-15 and 311,642,469 in2015-16. Currently we have presence in four states of Bihar, Jharkhand, Uttar Pradesh, and Delhi operating around 13 branches we operate 8 branches in Bihar of them 4 are in patna rest are in the district of Ara, Gaya, Motihari, Sasaraam. In Jharkhand we have two branches in Jamsedpur. In Uttar Pradesh we operate two branch in Lucknow, in Delhi we have one branch in jamia nagar.
Maeeshat: What is your Future expansion plan.
Nayer Fatemi: We are planning to expand throughout the length and width of India to join hand with developing economy in which underprivileged should be benefited. Currently we are planning to expand in Gujarat and other western states with an average priority of opening minimum three branches per year.