Our process based on Joint Liability Group model with suitable adaptations. As per JLG model customers would be formed into group of five members and three to five groups would be clubbed together to form a center. Center and each group in that center would have one leader and each member of the group taking guarantee of other members for timely repayment. The process would be as follows:
Sales officer of the company would be visiting the targeted or identified areas and explaining the features of Income Generating Loan of the company.
Group and center will be formed by customers and completed applications would be taken from the customers along with KYC documents.
Sales officer would visit all customers to do the physical verification to check the original KYC, business activity and neighbor check.
The application would be submitted to Branch Manager for credit approval. The Branch Manager would also visit customer’s houses randomly to verify the company processes are followed.
The groups would then be given rigorous training (CGT) by sales office to conceptualize the JLG model, end use of the loan, the fortnightly meeting schedule and collection process, other terms of loan, etc.
On completion of CGT (Compulsory Group Training) center is put for GRT (Group Recognition Test) by Branch Manager meanwhile at the background credit screening would be done to check the residence stability, nature of business, income to expense ratio and ability to service loan, etc.
Once loan application is approved and data entered in the system, the branch would invite customer’s center wise to the branch and disbursement would be done at the branch.
Collection would be done in center meeting at customer’s place to be held every fortnight.