Loan Disbursement Process

  • Branch operational area limits to 20 km radius to enhance faster operational process
  • Participatory Wealth Ranking (PWR) adopt as entry strategy to new villages and also identify poor section of community
  • Adopt Progress out of Poverty Indicator (PPI)  to exclude non-poor and also to identify ultra-poor families in the community
  • Branch Manager should attend first group meetings with Loan officer and explain lending, recovery and delinquency management process adopted by CBLM
  • If client wish to obtain services, loan application issues to such client at group meeting and loan application accept in follow up group meeting
  • Comprehensive loan feasibility process adopt  by branch staff to ensure optimum loan product and size offer to match client requirement
  • Credit Score Card ( CSC) develop to decide loan size to minimize the credit risk and over indebtedness
  • Group leader’s recommendation is compulsory for any loan and two group members also need as guarantors.
  • Livelihood development services needed for clients identify in the loan feasibility process
  • Six credit risk management tools adopt to minimize or avoid credit risk
  • Loan disbursement period should be a week after accepting loan application from clients
  • Client should attend loan disbursement meeting at branch office where Branch Manager provide all information, explanation of loan limits, fees and loan recovery process
  • Loan recoveries are based on monthly group  meetings which facilitate by group leader
  • Best performed clients and group leaders rewarded end of each year with gifts and appreciations
  • Selected Group Leaders send for foreign training as an appreciation of their services