Background:
Structure of the Organization:
The organizations structure has a 2 tier hierarchy with the head office and 4 branch offices; there are 25 employees in total in the organization. With the operations officer at the top and followed by the respective branch managers with 4 field officers per branch, the organization is well managed. The head office of nightingale charitable society for Microfinance is situated in chandmari, guwahati. The 4 branch offices are at Ulubari, Chandmari, Beltola and Malegaon.
Mission
To economically empower the low income segment, especially women, by providing access to need-based financial services in a cost-effective manner on a sustainable basis.
Vision
Nightingale as the most trusted Microfinance brand in India, providing access to diverse financial services to one million families by 2018.
Objectives
To form Self-Help Groups (SHGs), Joint Liability Groups (JLGs) etc. and arrange credit facilities to income generating activities through Micro Finance Schemes. To support the poor and the unemployed youths in income generating activities through Micro Finance plans and provision. To impart training to the entrepreneurs.
Achievements:
•The loan recovery rate is above 98 per cent.
•Accountability and transparency are the primary guiding principles of Nightingale Charitable Society since its inception.
•Currently, we have strength of 198 women-run SHGs comprising 1980 members in Nalbari and Kamrup districts of Assam.
•NCS has 200 Joint Liability Groups (JLGs) comprising 1000 members. We have advanced credit among 400 individual members as well.
•Started off from a turnover of 1 lakh in 1997 to 7 crore turnover in 2009.
Process:
The NCS has implemented the JLG or the joint liability group scheme for conducting the microfinance process. The main components under the scheme are: (1) mobilizing into groups
(2) capacity building
(3) Credit support.
NSC considers only married women in groups of 5 for the joint liability, with one member being the group leader among them who is held responsible for the group.
DISBURSEMENT
The clients interested in taking up loans from the NCS contact the field officer in one of his visits to the localities. The field officer informs the concerned area branch offices about the same. The field officer/ credit officer conducts a 3 day training as a part of the identification process, appraising the clients about the various products, rules and regulations set by NCS. As a part of the NCS identification process, the field officer conducts the Group Record Test (GRT)/ Group Assessment Test. The FO or CO then fills in the Group assessment form and the group training record, and submits them to the Branch manager (BM). Based on the branch manager’s approval the CO then takes the process forward.
When the branch manager approves the group training record, the CO gives the necessary documents and forms that each client needs to fill up to take a loan namely :
(1) JLG agreement paper
(2) Promissory note
(3) Loan application
and gets them filled by the clients and brings it back to the branch office. The branch manager checks and approves all the documents.
The particulars about the client are entered in the client information register and also in the master register where the following fields are listed:
(1) Name
(2) Address
(3) Date and time of collection
(4) amount
(5) group number/code
(6) phone number (if any)
The credit officer then fills in the Fund requisition sheet (FRS) which records the following details:
(1) Group code
(2) name of borrower
(3) area/ address
(4) amount
(5) cheque no.
(6) Cheque number.
Next the clients come to the branch office to collect their loans after the branch office gets the cheques from the bank, the details about the cheques are updates on the FRS which is then approved by the Operations manager.
Separate entries are done on the cheque entry register, and the cheques are disbursed to the clients after they sign the agreement, promissory note and on the master register.
Facts:
1. Loan amounts : 5000, 10000, 15000
2. ROI : 13.25%
3. Only married women are eligible
4. Loans given as cheques only
5. Over 98% repayments
6. 1% risk fund and other charges – is charged per client
7. 900 new clients joined in the month of February, year 2010.
LOAN REPAYMENT
The CO collects the repayments from the group leaders of respective groups, subsequently he makes entries on the receipt booklet and provides the client with a proof of cash received and keeps a copy for himself. The receipt booklet contains the following fields:
(1) group identity
a. name of all members inc group leader
b. area of meeting center location
(2) installment
a. Principal
b.interest
(3) amount
(4) payers sign
(5) collectors sign
The CO collects money from the scheduled groups and returns to the branch office. The CO then fills the entries in the Daily collection register which has the following fields
(1)name of group leader
(2)Group code
(3)Installment
a. principal
b.interest
(4)money receipt number
(5)total payment and the entries go on to the final register.
The CO also makes entries on the loan card which is then verified and approved by the branch manager. The CO then prepares for the next day and leaves to the listed localities from his house.
Facts:
1.Monthly repayment structure (most others have weekly repayment structure)
2.If one person is not able to pay his share, the other group members must pay extra to raise that amount of cash.
3.Every Thursday of 1st week of every month (they follow a system of days in a week so that public holidays etc will not affect their schedule of loan repayment collection)
4.473 collected per month for a 5000 loan (interest rate of 13.52% p.a)
5.No security deposit
Credit Officer:
1.Maintains a receipt book and a personal record book.
2.Each credit officer is given a certain sector to cover. This sector might have many meeting centers for each group; sometimes multiple groups have the same meeting center. With increase in no. of clients, no. of meeting centers will also increase, making it difficult for the CO to keep track of what all groups to visit on any given day.
3.Has a mobile phone
4.Goes to the field from his house at 0930 hrs, returns by 1330hrs and inputs records in main register. Cash is deposited in banks before closing time of 1600hrs.
5.Salary structure : 3000 p.m apart from incentives
