The Sangamam Multi-state Co-operative Credit Society, one of the pioneers in micro-financing in the country, will soon open its first branch in the state at Aluva.
K Shamsudin, managing director of the society, announced this in a meeting held at Aluva Palace on Wednesday.
Sangamam is planning to work on the basis of the Multi-state Cooperative Societies Act, 2002.
The society will have an initial capital of `50 crore as stipulated by the government and will have the privilege of extending operations to Tamil Nadu and Puducherry other than Kerala, Shamsudin said.
The key role of the institution will be to fund small-scale enterprises with interest-free loans with rights of sharing the profit or loss of the receiving company.
The society will also fund members for their critical needs or day-to-day requirements on the basis of service charges.he working capital of the society will be raised through paid-up amount by shareholders and through collecting fixed deposits.