Methodology

We offer a relationship experience based on empathy & respect, while providing the clients the means to meet their financial needs. The products offered meet their diverse requirements for the present & enable them to create a better future for themselves and their families.

SVCL follows the Joint Liability Group model as per which- 5 women form a self-selected group which serves as ultimate guarantor for each other. In a JLG, the members have to be of similar age group, same area, and be known to each other, however they cannot belong to the same family.

First loans are usually small and help to inculcate credit discipline and create a joint sense of responsibility. Interest payments and loan repayments are simplified for easy comprehension.

Identification: SVCL field staff is trained to identify, motivate and organize interested women into a JLG. He or she conducts projection meetings in a given locality/village to identify prospective clients.
Customer Training: Each group receives Continuous Group Training (CGT) for 3 days. The training covers the basics of microfinance, our own products, interest rates, repayment process, group responsibility & credit discipline.
Group Recognition Test (GRT) and Loan Approval: Customer details are validated through a GRT. Once the group passes GRT it becomes eligible to apply for the loan. The group is officially recognized and schedules are fixed. Also, it is ensured that the group is cognizant with the program.
Loan Disbursement: Approved loans are disbursed at the Branch Office, subject to verification of documents and appropriate customer KYC. Loan repayment schedule is generated & communicated to the customer.
Loan Duration and Repayment: The loan term is up to one year. The repayments are collected at center meetings as per pre-determined schedule. Loan repayments are on a weekly declining basis.
Credit History: By timely repayments, a customer is able to build a positive credit history. This enables the client to take higher loan amounts going forward.