Types of Loans offered by Encot:
1. Micro Enterprise Group Loans
2. Agro Production Group Loans
3. Individual Small & Medium Enterprises (SME) Loans
4. Home Improvement Loans
5. Solar Energy Loan
ENCOT uses an appropriately developed group methodologies in provision of micro-credit to its constituents. This methodology is uniquely distinguished using the following Principles:
Principles used by ENCOT in its lending program:
a) We promote credit as a right.
b) Our mission is to help the poor families to help themselves to overcome poverty. Thus we target the poor, most especially poor women.
c) Our lending is based on ‘trust’ and not on traditional collateral, or legally enforceable contracts/procedures or system.
d) We offer credit for creating self-employment through support to income-generating activities as opposed to consumption.
e) Our credit program is initiated as a response to challenge posed by conventional banking which reject the poor by classifying them to be "not creditworthy".
f) We provide service at the door-step of the poor based on the principle that the people should not go to the bank, instead the bank should go to the people.
g) Priority in issuance of credit is given to active poor working as a group.
h) Loans can be received in a continuous sequence (cycles). New loan becomes available to a borrower if his/her previous loan is repaid.
i) All loans are to be paid back in installments (weekly, bi-weekly and monthly).
j) Simultaneously more than one loan can be received by a borrower e.g. micro-enterprise loan, solar loan, agro-equipment loan, water loan etc.
k) All our loans come with an obligatory savings programmes for the borrowers.
l) We give high priority on building social capital. This is promoted through formation of groups and centers, developing leadership quality through annual election of group and centre leaders.
m) Our credit delivery program is based on the premise that the poor have skills which remain unutilized and/or under-utilized. It is definitely not the lack of skills which make poor people poor. We believe that the poverty is not created by the poor; it is created by the institutions and policies which surround them.