Our Process

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Robust operations are critical to the success of any microfinance institutions. We are strongly focused and take great care in ensuring the integrity of each transaction, cash or otherwise.

Our process starts with a diligent regional survey to understand the local economic and political environment. Our Field Executives cover multiple villages within a region to record their findings on various fronts such as per capita income, local infrastructure, basic services, etc. This data is then comprehensively assessed to identify regional need and ease of operation, thereby, determining the villages most appropriate to begin operation in.

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The selected villages are then visited by our team to hold initial promotional events (also called Projection Meeting). At this event, we bring together local people to provide an overview of our organization and our products and services. The event generally ends with an exciting interactive Q&A session where we take questions from members of the village.

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We ensure no question goes unanswered and that all doubts of any kind are addressed on the spot and in full public view.

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The projection meeting sets in motion the group formation exercise which is closely reviewed by our Field Executives to ensure formations that encourage social inclusion and mutual trust. Groups at one location become part of a centre where all meetings are henceforth held as per their convenience.

These groups, then, undergo comprehensive and mandatory multiple day training wherein they are elaborately explained the Light Microfinance systems and processes. Aside from describing our products and policies, we put in great effort to also teach our members to write their names and, more importantly, also ensure to create an environment that engenders mutual trust.

The training sessions end with a very critical test to ensure our guests understand and fulfill the criteria to become members. Some key activities during this test include mutual confirmation among guests that they fulfill the criteria of being economically needy, their knowledge and trust on each other and agreement to adhere to our policies and procedures.

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With the groups confirmed, the members are now ready to receive financial assistance from Light Microfinance. We adopt the usual industry formula of disbursing loans; in that, certain members receive loans before others. These members are selected by the group itself. The selected members first submit an application mentioning the amount needed and its proposed deployment. This proposal is first given consent by the group members and then all the groups at the center, before it is carefully analyzed by our field staff, who possess significant knowledge of typical capital requirements in rural enterprises. Once the proposal is assessed and modified, if necessary, the loan is disbursed in the next meeting.

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The loan transaction is completed with member repayment which starts the week after loan disbursal. This repayment schedule continues for 50 weeks before the next big loan can be disbursed to the same member.