Business Model

1. Micro Finance Operations:

Economically weaker households are motivated to organize themselves in homogeneous groups called JLGs comprising of 4-20 members.

2. Member Selection Process:

Relationship Officer (RO) explains the basics of JLG model and microfinance program to the members and encourages them to form a group with a maximum of 20 members from similar socio-economic status but different households.

3. Credit Bureau:

Once the group is formed, RO collects the customers document and fills up the ‘Member Selection Process’ form. The members’ details are forwarded to Credit Department (Credit Bureau) for credit approval.

4. Compulsory Group Training (CGT 1 & 2):

After obtaining approval from the Credit Bureau, the RO organizes the approved members in a JLG and fixes the day and time for a two-day Financial Training (FT) program. Members are imparted information on objective, rules & regulations, procedures, insurance, over- borrowing, demerits of defaults and other important financial requisites.

5. Group Recognition Test (GRT Test):

Branch manager verifies the group standard and assesses their credit worthiness. If the group is approved, then the loan application form is filled up by RO and signed off by the customers. The same is then sent for further processing and sanctioning of the loan.

6. Disbursement Process at Branch:

The Disbursement documents are signed by the Branch Manager. This initiates the ‘100%-cashless-process’ for loan disbursement. The loan amount is directly credited to customer’s bank account by the Central Finance Team.

7. Repayment Methodologies:

The RO conducts meeting as per schedule, collects EMIs from the group and issues them proper receipts.

8. Post Disbursement Verification and LUC Process:

Welcome call is given by ‘tele-calling team’ to all the customers getting disbursement. It specifies the disbursement transfer to customer accounts and also Loan Utilization Check (LUC) process perform by the Field Officer.