A ‘Pragati’ is an informal group of 5-10 women founded on the basis of trust and knowledge of each other’s business and nature. Group members help to run their business and reside in the same locality. Each group selects a group leader who is responsible for coordinating repayments, liaising with the company and regulating group peer pressure. Each group member takes on and agrees to guarantee the loan of others in the group.
Our Pragati model offers our customers the help they need by financing their income generation activities and in the creation of assets, which improves their quality of life.
Groups of 5-10 members are formed with one group leader. The members should know each other, live in close proximity and share a common intent of taking a loan on the basis of group guarantee.
Following KYCs are collected from the primary applicant- 1. ID Proof, 2. Address Proof, 3. Proof of age, 4. Proof of nominee. Voter ID is considered the primary ID proof. Additional documents include nominee’s KYC, nomination form and passport size photographs of nominee and applicant, and bank details.
In order to ensure that the members of each group are within the established credit lending norms, Credit Bureau enquiry is done before the loan application process. In this process, basic KYC details are entered in the tablet and an instant Credit Information Report of the members interested is generated.
The Sales Officer in charge provides the individual members necessary information about the company and other financial details for them to apply for a loan. He orients the individual members about the eligibility, training, documentation process, loan products, terms and conditions and motivates them to associate with the organization.
The loan application is through the Digital Field Application (or tablet), wherein the prospective borrowers agree on the terms and conditions of the loan and on joint liability for repayment.
The verification process helps in the understanding of the member’s knowledge on the aspects of eligibility criteria, loan products, terms and conditions and the responsibility of becoming a client at Belstar.
The Risk Assessment Team conducts the assessment which involves a house visit of the member households, verification of the loan application, AGT and GVP report and KYC documents, and recommending the members for loan sanctioning.
The centralised backend team assesses the information received from the field authorities. If all the specified criteria are met, the loans are sanctioned.
Belstar opts for cashless disbursements directly to the bank account of the customer. The disbursement process takes place at branch premises after completing the loan documentation process.
The Loan Utilization Check shall be conducted for every disbursement within 60 days from the date of disbursement, to ensure that the stated borrower has availed and utilized the loan for the purpose indicated in their loan application forms.
Repayment collections are received only at the branch office. Any of the borrowers in the group can remit the amount on behalf of the group. The branch accountant accepts the repayment and provides the receipt to the borrower either generated through the system or manually. Belstar functions on a monthly repayment cycle.
Borrowers have the option of terminating their loans before the completion of the loan cycle, in specific cases. No prepayment charges are levied in case of early repayment or on pre-closure of loans.
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.
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 timeRead More
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.Read More
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.Read More
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.Read More
Our work helps to create opportunities and pave the way to renew the way of life for families seeking economic guidance.Know More