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| Lending Methodology |
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Survey
Once Grameen Koota decides to set up a new branch, staff members conduct a comprehensive survey of the particular village to evaluate the feasibility of operations. The area is then mapped with approximate distances, villages and target population.
Group Formation
After officially opening a new branch, Grameen Koota conducts informal meetings with village members to describe Grameen Koota and explain the principles of microfinance. Interested women form self selected ten-member group to serve as guarantors for each other. Once the group is formed they have to be informed about the reasons for collecting the basic data of the members.
Compulsory Group Training
This five-day program serves to educate the borrowers about the process and procedures of Grameen Koota. Grameen Koota staff then introduces clients to various financial products and delivery methods. Besides building a culture of credit discipline, Grameen Koota staff also teaches the importance of collective responsibility, how to elect group leaders, the Grameen Koota pledge in Kannada and how to sign their names. The Grameen koota staff also collects the basic data of each client, which is filled in the prescribed form at the respective client’s houses. All the family members of the client are present when the information is gathered. On the final day, the Area manager conducts the compulsory group training and the clients are officially declared Grameen Koota members.
Kendra Meeting
A Kendra consists of four groups. Financial transactions commence one week after Kendra formation. Each Kendra member is responsible for the repayment of all groups. And this commitment amongst members shows as groups support each other.
Process Outline
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| SURVEY OF VILLAGES / SLUMS |
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| PROJECTION MEETINGS |
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| FORMATION OF GROUPS |
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| TRAINING OF GROUPS- 7 DAYS |
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| START OF KENDRA MEETINGS |
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| MEMBERS START WEEKELY MARGIN MONEY COLLECTION |
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| MEMBERS ELIGIBLE TO RECEIVE LOANS |
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| LOANS REPAYMENT IN EASY INSTALLMENTS |
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