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We are one of the pioneers in forming self help groups (SHGs). We organize financially disadvantaged women into SHGs to overcome their difficulties and build their own Eco- system to gain access to financial services in the most transparent and consistent manner. These SHGs are then groomed to build self-confidence, collective ownership, equality, efficiency, transparency and a strong sense of saving and credit culture through monthly meetings.

Process of forming SHGs and credit linkage

• We visit the local government administration office for data and meet a sample set of customers to determine the need, potential and the major occupation in the locality.
• Based on the need and the potential, we put in place a branch headed by the Branch Manager, supported by Audit manager and five (5) other relationship mangers.
• In the identified location, these relationship officers travel to new areas to replicate the process of inclusion of the financially disadvantaged women into the SHG –Bank linkage model. These Officers visit the households; help them form into SHGs, open bank accounts and provide them book-keeping training and materials.
• The women in need of financial services then form a Group with a maximum of 20 members of similar socio-economic status from different households.
• The member details are then forwarded to the Bank for credit approval. The credit check is done by using credit bureau and the credit guidelines of the Bank.
• Post approval, we conduct Financial Literacy Training (FLT) for 3 consecutive days (45 to 60 mts per day) program. In this program members are trained on objective, purpose, rules and regulations, insurance, savings and perils of over borrowing through easy to understand language and short anecdotes/stories.
• Post training a credit assessment process is conducted by Branch Manager in order to ascertain the loan eligibility of the SHG and its members to become clients and subsequently avail credit. This is called as FLT test.
• Post FLT test the loan documentation of the Bank is completed and sent to the Bank for disbursement.
• The loan amount is disbursed to the members at the branch office. The SHG members come to the branch office on pre-fixed date and time. Members carry ORIGINAL identification document to the office at the time of disbursement. The Branch Audit Officer will then hand over the Loan Amount and the individual Passbook after verification and obtaining acknowledgement from the customer.
• The Relationship officer will conduct the monthly collection meeting as per schedule decided at the time of loan sanction and collect EMI’s from the SHG’s meeting place, which is then credited to Banks account.