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Internal
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Portfolio Control |
PRE-DISBURSEMENT
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Client appraisal - A systematic client appraisal
process is in place since beginning to identify
potential as well as risky clients/groups and
furthermore to take lending decisions.
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Eligibility check: Client
appraisal process concurrently begins with group
formation. The credit officer, who is responsible
for group formation, carefully facilitates the
group to choose their members keeping in view
of the membership norms of SAADHANA and confirms
the same through the random house visits. As a
result, eligible members only form into groups.
Adding to this, on the last day of group training,
the verification authority visits the group to
verify the group's eligibility and potentiality.
Before initiating the actual verification process,
the verification authority builds rapport with
the group, clearly explains the purpose of verification
then facilitates the group to interact without
any discomfort.
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The
focus of interaction will be on the following areas.
- Clients
awareness on SAADHANA's
services
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Clients knowledge of SAADHANA
membership norms
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Clients understanding of SAADHANA's
credit policy
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Data corroboration with co-guarantors in the group
- Analyzing
existing debt obligations of client's household
- Loan
purpose
- Solidarity
- Leadership
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Participation
- Multiple
membership
Pre-Project appraisals: During
the interaction with the clients, the verification authority
also appraises the previous experience and skills of
the client, feasibility, market and other external risks
involved in the proposed projects.
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POST-DISBURSEMENT
- Zero
tolerance policy: SAADHANA
follows Zero tolerance policy to ensure on time
repayment and has a practice of not closing the
center meeting until the entire repayment amount
is collected.
- Project
verification/Loan utilization checks:
Ensuring
loan utilization is the responsibility of the
whole group. The group itself ensures grounding
of their projects. In addition to the peer pressure
and client appraisal process, SAADHANA also follows
up on loan utilization through project verification.
Project verification involves physical verification
of the grounded projects within a week after loan
disbursement. In case the money is not used, the
matter would be brought into the notice of the
group in the next meeting. In every meeting, the
credit officer reminds the members of the purpose
for which the loan has taken and that there should
not be any cross-usage.
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