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- 1. WELCOME spandana sphoorty financial limited
- 2. What is Microfinance • “Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self- employed, who traditionally lack access to banking and related services.”
- 3. Features of Microfinance: • Borrowers are from the low income group • Loans are of small amount – micro loans • Short duration loans • Loans are offered without collaterals • High frequency of repayment • Loans are generally taken for income generation purpose
- 4. NAME MEANING • Spandana stands for ‘responsiveness’. Spandana started as a response to a need and an opportunity • Sphoorty stands for ‘inspiration’ – this exemplifies the growth of Spandana in provision of larger bouquet of financial services to larger client base.
- 5. SPANDANA VALUES TRICS exemplifies our core values - • Transparency - Maintaining simplicity and clarity in all activities and operations, so that high standards of fairness can be established in all the dealings. • Responsiveness-Constantly working to identify the changing needs of clients and potential clients, and developing suitable products and services to address these needs thus keeping Spandana ahead of its competitors. • Integrity -Maintaining high standards of conduct, truthfulness and honesty in all dealings, in order to honour the commitment made to our clients and organisation. • Commitment -Performing all activities and tasks with professionalism and enthusiasm in order to give the highest level of client satisfaction and optimal efficiency.
- 6. SPANDANA HISTORY 1997, Guntur Town, Andhra Pradesh, India. During a hot summer afternoon, when most of the women would prefer a siesta, Mrs. Padmaja Reddy saw a rag-picker woman on the street buying household reject items on a push cart. Her entrepreneurship made her curious. Speaking to her, Mrs. Padmaja Reddy realized that the lady was working very hard but not getting commensurate returns. Despite her efforts, she was able to provide only one meal to her family. This was mainly because the lady was paying an exploitative daily rent for the cart that cumulatively far exceeded the cost of buying scores of such carts. The lack of access to affordable and serviceable capital was leaving little alternative options for her. While a bank would never provide credit to her on many accounts, the money-lender was far too exploitative. Mrs. Padmaja Reddy decided to lend her a little money, enough to buy the cart. The money was given with a promise of timely and reasonable repayments. The hard working woman started using her new self-owned push cart, she could save on the rent cost and repaid the money conveniently from her increased returns. Now this women could afford better meals for herself and her children. She also spread the word that there was an organization which was helping economically active women with loans. It seemed to strike the right chord with several low-income people, and soon there were many waiting to get such loans at the doorstep. 6
- 7. Mission we want to be one of the top 2 global Micro finance Organization by 2012, offering a range of financial and non financial products and services to low income households and individuals to improve the quality of life. we constantly Endeavour's to deliver quality services to our customers and remunerative returns to our investors by maintaining highest levels of transparency and integrity. We strive to be the most preferred employer in the industry."
- 8. Mission specifies • Women • Clients living in rural areas • Clients living in urban areas
- 9. Development Goals • Increased access to financial services • Poverty reduction • Employment generation • Growth of existing businesses • Development of start-up enterprises • Gender equality and women's empowerment • Improvement of adult education • Health improvement • Children's schooling • Housing • Youth opportunities
- 10. Poverty Target • Very poor clients • Poor clients • Low income clients
- 11. Range of Products and Services • Financial products and services credit products offered: • Microcredit loans for microenterprises • Microcredit for household needs/consumption • Loans for agriculture • Loans for education Voluntary Insurance product offered • Voluntary credit life insurance
- 12. BUSINESS MODEL Capital/ Spandana Insurance Debt Equity Funds Companies Partnerships Repayment Lending Banks branch Village Selection Survey a Village Group Formation (8-10 Clients) and Training Formation and Credit Assistant training of groups Center Formation Loan Repayment Service at doorstep Financial Services Borrowers at the Door Steps Deploy in the Repayment Invest in household Productive cash-flows Assets
- 13. INDIAN MFI UNIVERSE comprises of very few large MFIs but large number of small players Medium size MFIs Large size MFIs mF as a segment of Not-for Profit Startups/ Small (AUM Rs.100 to 200 (AUM > Rs.500 cr) overall business MFIs regional players cr) 1 Spandana Future Financial L&T Finance Cashpor Suryodaya 2 SKS ESAF SEIL SKDRDP Asomi 3 Share Satin Fullerton Sanghmitra Vistaar 4 Bandhan Trident IVDP 5 Asmitha Sahayata 6 Equitas Aarohan 7 Ujjivan Sonata 8 ASA-Gram Vidiyal BWDA Finance 9 Basix Sharda It is estimated that there are over 13,000 MFIs in this 10 Grameen Koota Awareness group of startups, not-for profits or the for-profits that have not managed to achieve a critical scale. Very few scaled/ scalable MFIs exist. 13
- 14. Credit Assistant Credit assistant are the base of the spandana As we know every big building has a base and only the strong base can give beautiful shape to any building. same as in spandana credit assistant play very vital role for the Business. Because CA are, of those employee who are close to customer.
- 15. UPPERLEVEL (CEO,MD,VP AND ALL) MIDDLE LEVEL (MANAGER AND OTHER) LOWER LEVEL (CREDIT ASSISTANT)
- 16. Schedule of the credit assistant Branch Office 6.00 am to 6:30 am Evening Field 4.00 DAY OF Morning Field pm to 7.00 pm A CA 6:30 am to 11.00 am Branch Office 11.00 am to 2.00 pm
- 17. . Key activities performed by a CA • CA Responsible for identifying villages, conducting village surveys, and introductory meetings (along with the Branch Managers). 1. Responsible for formation of groups (members/borrowers) for the growth of the organisation 2. Responsible for imparting training to prospective borrowers. 3. Responsible for taking the loan application of the members. His recommendation would be the key input for arriving at a loan decision. 4. To conduct centre meetings as per scheduled time and at a scheduled place. 5. Responsible for sincerely carrying out, all the responsibilities allocated to him/her by the Branch Manager or Head Office from time to time. 6. Responsible for the cash collected and cash taken for disbursements in the centre meetings, till it is properly handed over to the Cashier at the Branch office. 7. Responsible for the following documentation/System work at the branch 1. Filling up of centre registers, loan cards, Applications and LD vouchers 2. Entry of recovery, LD and preclosed loan details 3. Submission of cash as per collections with denomination slips, updating DCB, DFS 4. Entering centre wise R&P in SIMS-GL 5. Update operations register, Movement Register, TA Book on a daily basis 8. Responsible for the publicity of the organization at the village level. Credit assistants should spread information about all the loan products of the Organisation to the people. 9. Responsible for training new staff who get allocated to him/her, as a part of the training program.
- 18. • Delinquency Management: In case of delinquency / default, CA has to manage the situation diplomatically without hurting the feelings of borrowers. He should motivate other group members to help the delinquent client as promised at the time of loan disbursement. CA should inform the BM well in time and seek his support as required. CA should not become impatient and shout at the borrowers. He should not leave the slum / village without recovery. CA as demanded by the situation, should wait until the group collectively manage to repay the installment. If the CA knows that a loan would fall delinquent, he should go and meet the client one day before the centre meeting and motivate her to repay loan on time. If the delinquent borrower has some genuine reason to delay / default the repayment, CA should discuss with the BM and well in advance and give her the required support.
- 19. Dataflow from client level transaction to monthly reports. • Filling up of centre registers • Submission of cash as per collections with denomination slips, updating DCB, DFS • Cash book (day to day) • Operation register – progress l/d, complete loan, recovery, total old loan, ALR closing by BM n check by RM • General ledger = outstanding, recovery
- 20. Who fills what? • Movement = every employee • Centre Register = CA • DCB = ca (check by BM) • DFS = CA (check by BM) • cashbook = CA or BM • Operation register = CA or BM • Acquaintance register (salary detail stamp) by Bm • Application form = CA (approve by BM) • Attendance register = by BM • Auditing remarks register = auditor • BM activity plan = by BM • CASH FLOW STATEMENTS (DCB & DFS) • Cash receipt and payment register=CA OR BM • Operation register = CA or BM
- 21. • Members dropout details register = CA or BM • General ledger (chashier) • Ca plan (every CA)
- 22. Points of check /verification • BM/RM should checks each and every ALR adjust DFS centre visit check cash check DCB ALR adjust register check why happen movement members attendance
- 24. THANK YOU