Q4 FY23 Performance and Business Highlights
Committed to Basics Through Classical JLG Lending Model
CreditAccess
Ⓡ
Grameen
Microfinance loans are unsecured. JLG mechanism acts as security/loan collateral
JLG Benefits:
✓ Strong group bonding
✓ Mutual support - both financial & emotional
✓ Guidance & grievance resolution
✓ Building awareness
✓ High quality customer - good behaviour & strong credit discipline
Fully aligned with new harmonized guidelines in terms
of -
✓ Formulation of Board approved policies
✓ Process modifications
✓ Underwriting changes
✓ Technology changes in Core Banking System
✓ Training to all the employees
.
.
Group
Formation
Self-chosen
group within
500m radius
.
Mutual
.
reliance
Group: 5-10
members
Kendra:
2-6 groups
Digital process
to capture KYC
& household
income
Data Entry
& CB Check
Data entry
into CBS at
RPCs
. KYC
verification by
RPCs
Comprehensive
OCB check for all
earning family
members
JLG Mechanism allows Multiple Layers of Checks before and after disbursement of loan
.
Group
Confirmation
Kendra
Meetings
3-days CGT by
LO
• Weekly/
Re-interview
by BM
•
Loan
Applications
Loan
Evaluation
Loan Sanction
& Disbursal
Compulsory
house visit
Compulsory
house visits
GRT by AM,
ad-hoc
verifications,
group
approval
Fortnightly
meetings
⚫ Duration: 30-
45 mins
• Act as early
warning
indicator
New LA is
captured in
Tab
Subject to
group's
approval, LA is
accepted by
the LO for
further
processing
First loan IGL
only
Repayment
capacity to be
assessed on
existing cash
flows
Household
income
assessment
Loan sanction
after complying
with max 50%
FOIR
Group's re-
confirmation
Fund transfer
to bank a/c
⚫ Passbook/
repayment
schedule &
pricing fact
sheet
Loan
Repayment
Choice of
repayment
frequency
Collections
updated
online on Tab
.
•
Loan
Utilization
LUC between
5-10 weeks
Follow-up LUC
in 11-15 weeks
LUC recorded
in passbook
and LUC card
details in Tab
Note: CB: Credit Bureau, CBS: Core Banking System, RPC: Regional Processing Center, CGT: Compulsory Group Training, LO: Loan Officer, BM: Branch Manager, AM: Area Manager, LA: Loan Application,
LUC: Loan Utilization Check
www.creditaccessgrameen.in
28View entire presentation