Target state is Delhi.

Question 1. Although Delhi is technologically advanced, collection rate is below

national average. So the firm should target to increase collection rates of nearly
95%.
Long term Strategy
1) To increase the collections to 95% and disbursement of loans by 2 times
using IT in the next 5 years.
2) To increase the payments received using IT as a percentage of total
payments to 70%.
Functions
1. Loan disbursement function. Implementing IT would lead to fast disbursal
of loans and quick credit rating of the borrower
2. Payment collection. Cash-less loan payments by providing apps and epayment options
Question 2.
1. Providing gadgets with biometric identification: Knowing the aadhaar
number and PAN of the borrower or his biometric, his credit score could be
known immediately and thereby facilitating loan disbursement.
2. Facilitating loan repayment through smart phones, BHIM payment, USSD,
or UPI payments thereby easy loan collection.
3. Educating the employees and Business correspondents about the
importance of online transactions and using these systems
4. Educating the current and prospective customers and stakeholders about
e-payments and benefits associated.
Total budget: 258 Lakhs.
Allocated: 30% = 77.4L
Educating the employees: 2L
Training the customers: 25L
Tablets + IT Infrastructure: 50L
Miscellaneous: 0.4L
To enable IT initatives, MFI has to start a new IT department. This will
facilitate easy transition to IT and any conflict resolution arising thereafter.