| # | Step Description | Staff Responsibilities | Approving Athorities |
| 1 | Area selection: The villages are Identified which are under 20 KM distance from branch. The villagers are gathered, and field executive tries to know what their income level is, their occupational patterns, their income generation activity, their money lending process, sources of their money lenders, interest charged by them, presence of other MFI’s. Regular Interactions are conducted with the sarpanch, anganwadi worker, schoolteachers, etc. Village survey form is filled with the information as total number of households, literacy rate, sources of income, main business activities, financial dependency, irrigation facility, major threats etc. by the Field Executive (FE). The village survey form is verified by the Branch Manager and the survey report shall be approved by Area Manager or Equivalent Designation After filling the form, the date of projection meeting is decided and conveyed to the interested people and request them to take out their time to take part in it and how it will be beneficial to them to save them from money lenders who are exploiting them in the name of lending money. | Field Executive Recommendation: BM | Area Manager |
| 2 | Information/Projection Meeting: After getting approval on the village survey, Field Executive makes a visit to organize a projection meeting and ensure that all community should participate in the meeting. The purpose of the meeting is to make potential clients and residents of the selected operational area, terms, and conditions and to generate an interest in taking a loan. Field Executive makes note of people who are interested and can convince others in getting involved in such activities to raise their living standard and support family income. He also informs them about the further process of group formation and decides the meeting date and time, give contact details to them. | Field Executive | Branch Manager |
| 3 | Group Formation Meeting: It is vital for a group that all members should know each other, and all members should accept the responsibilities. To ensure the above, the field executives and the Branch Managers must explain the group responsibilities regularly to the members during training and GRT process etc. | Field Executive | Branch Manager |
| 4 | Members Selection & Credit Bureau: Field Executive facilitates formation of group among the interested people. Groups need to be formed by the clients as per their convenience. The data along with KYC documents sourced from the selected members is sent for the Credit Bureau Check. After the credit bureau check report is generated, the client who are approved from that, for them the CGT is done. | Field Executive | Branch Manager |
| 5 | Compulsory Group Training: After group formation, a 3-day Compulsory Group Training (CGT) of the members is organized in a particular location, preferably in one of the member’s house which should be approx. 1 Km walk from each member house. The CGT is meant to provide a complete awareness about the MFSPL terms and regulations, roles and responsibilities of a group member and Centre as a whole. | Field Executive | Branch Manager |
| 6 | Group Recognition Test (GRT): All members must undergo GRT process for a loan application. GRT should be undertaken by Branch Manager (BM). It is undertaken to ensure the quality of training and suitability of the group members to borrow a loan from MFSPL. It starts with everybody reciting Pratigya Patra. Household verification is conducted during the GRT. In this the Branch Manager must visit each house and should make sure that all the particulars mentioned in the loan application form are true and hold valid. | Field Executive | Branch Manager |
| 7 | Loan Application Process: After successful completion of GRT process, the group undergoes loan application process for the disbursement purpose. The FE must fix a date for filling up the loan application process in presence of all the members. | Field Executive | Branch Manager |
| 8 | Documentation and Loan Disbursements: Application Form is given to each member for duly filling of all details pertaining to loan and its purpose. Loan format verification is done by FE and then he recommends for approval to BM. To receive credit, the beneficiary signs on a revenue stamp on loan format, counter signed by group leader. All the disbursement will take place in non[1]cash mode (NEFT, RTGS, etc.). The cases with satisfactory disbursement documents will be sent to accounts for disbursement. Basis the conformation received from branch; accounts will disburse the loan amount to the client’s respective saving account through banking channels (NEFT) within next 24-48 hours (Subject to bank holiday). The amount transferred to client’s saving account will be after deduction of processing fee, insurance fee and any other charges levied by the company time to time. Once NEFT is done, branch manager will be informed by accounts team and will be asked to conform it from the clients. Confirmation from members will be communicated back to accounts team. | Field Executive | Branch Manager and Area Manager |
| 9 | Loan Utilization Check :Branch Manger will Verify within 30 days of disbursement whether the loan has been utilized as per loan propose mentioned in application form. All loan utilization check report should be uploaded in MIS within 30 days of disbursement | Branch Manager | Head Office |
| 10 | Loan Collection / Recovery: Center meetings are the Forum for repayment of installments, social awareness, capacity building empowerment hub and a platform for exchange of ideas and concerns. Clients need to repay their installments as per the repayment schedule provided at the time of disbursement. | Field Executive | Branch Manager |