A ‘self-help group’ consists of around 10-20 members from the same area with a similar socio-economic background. They come together to achieve a common goal - sustainable economic development, achieved by sharing concerns, supporting each other, solving problems in a democratic manner and a joint decision-making process.
The prescribed loan application documents are prepared by a representative of the group, containing the SHG loan fund request, copy of SHG resolution, borrower-specific loan requirement amount and related purpose.
The credit officer gives an acknowledgement receipt for the loan application stating the status and communicates within 15 days of receipt of the loan application.
This is done within 3 days from the receipt of application in the presence of all members. Adequate quorum, assessment of need, repayment capacity and maintenance of accounts helps to check the repayment history and eligibility of the borrower. The M1, M2 and A & R training is to be completed within one month of group formation and the rejection reason must be properly communicated.
Branch Manager assesses the creditworthiness of the group and rates them on the basis of prescribed parameters. Only those scoring above 60% marks are eligible for the loan.
SHGs are allotted to the RATs to mitigate the risk of providing the loan to ineligible candidates. The RAT checks the compliance of other processes and presents a detailed report against given parameters.
Sanction to be issued within 15 days of receipt of the loan application. Rejection cases are to be issued with a rejection letter stating reasons.
Disbursement is done through direct bank transfers and a post-disbursement check is to be done within 60 days from disbursement, and the inferences are to be recorded.
The loan passbook is provided to the SHG and individual members. Repayments are made only at the branch office and the details are recorded and signed off by the Branch Accountant after receipt is provided.
Collection reports are put together on a daily basis from the branch office for calculating financial ratios.
Our intricately detailed model and products are structured so that they help advance our customers from everyday survival to well-laid plans for the future.
Customers benefitted
Belstar’s success stories paint the picture of how women have inspired many by beating impossible odds and succeeding on their own for their families, with a little help from microfinance.
Belstar’s objective is to identify and effectively empower women to build a sustainable livelihood by giving them access to credit and training. Shajeena from Aluva is one such empowered woman and belongs to the Belstar JLG named Ambal. An enthusiastic person, Shajeena loves to spend her time
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Hema Prasad is 38 years old and lives in Khatima, Uttarakhand with her family. Her husband is a factory worker and earns a very minimal daily income. With a desire to improve the standard of living for both her and her family she started a small general store about 9 months ago.
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At Gudiya Singh’s small home in Lucknow, Uttar Pradesh the hum of the sewing machine has become the norm. Gudiya runs a tailoring shop from her home, she has two machines and uses them to do embroidery. Gudiya is happy to have become part of the Belstar family.
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Seema lives in Shimoga with her husband and children. She has been engaged in ‘plate-making’, while her husband is a daily-wage labourer. Their joint income was not enough to keep the family running. While Seema had ideas to start her own business, there was a paucity of funds.
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