Activity: As a class room activity, we have seen JLG Lending Training Process

of Spandana India, a Micro Financial Institution which provides microfinance

loans to women of low- income households in rural and urban areas.

About Spandana India

Spandana Sphoorty Financial Limited (SSFL) is a public company incorporated
under the provisions of the Companies Act,1956 on March, 2003. The Company
was registered as a non-deposit accepting Non-Banking Financial Company
(NBFC-ND) with the Reserve Bank of India (RBI) and has got classified as
Non-Banking Financial Company Micro Financial Institution (NBFC MFI)
effective April 13, 2015.
The Company is engaged in the business of micro finance providing small ticket
unsecured loans to women of low-income households in rural and urban areas.
The tenure of these loans is one to two years. The Company provides business
loans, income generation loans and Loans against Gold jewellery.
Video Series:
1. Joint Liability Group: Spandana India
In this video series-1, Kabir Kumar Microfinance Analyst, CGAP, discusses the
main lending technology used by MFIs in India - the Joint Liability Group model.
The group formation is the first and fundamental requirement of the Joint
Liability Group Model. Joint Liability Group (JLG) is a lending model that
enables a group of individuals (usually five) to take loans for income generating
activity by forming a group, wherein group members guarantee each-others'
loans.
2. JLG Lending Training Spandana India
In this video series-2, Kabir Kumar, Microfinance Analyst, CGAP, introduces
Spandana's training programme. The video shows how Spandana's training
programme not only set ground rules for all parties involved but empower clients
with necessary information and financial education. In this episode, after the
initial group formation, all members participate in mandatory training, where the
field officer explains the vision, mission and terms and conditions of
microfinance to the group. Further, the field officer also maintains the group
training register. Later, the field officer visits the clients at their residence.
3. JLG loan origination process and group recognition test Spandana
India
In this video series-3, delving deep into Joint Liability Group Lending Process
Kabir Kumar Microfinance Analyst, CGAP introduces Loan Origination Process
and Group Recognition Test (GRT) Process as applied by Spandana, one of the
leading MFIs of India. At this stage the field officer collects ID proof and address
proof and then loan application form is filled and dully signed by the whole group.
Further, the loan is granted once the group clears the GRT in the presence of
branch manager. If any member misses the GRT the meeting gets re-scheduled.
4. JLG Loan Utilization Check Process. Spandana, India
In this video series-4, the field officer with group leader comes to the business
location of the group member to check the authenticity of the business activities
and also to see the loan is utilized only for the said purpose. He enquires about
the amount spent so far and also check the receipts. Field officer fills the loan
utilization check report. He, along with the group leader, leaves the business
location. He then confirms about the information provided by the group member
to the group leader or not.
5. JLG delinquency management process Spandana India
In this video series-5 on Joint Liability Group Lending Kabir Kumar,
Microfinance Analyst, CGAP, introduces Delinquency Management Process of
Spandana, India. This video shows how Spandana ensures the repayment
problems are caught early and how it has been able to maintain excellent portfolio
quality. At this stage of lending cycle, the field officer along with the group leader
visits the member to recover the default payment. If the instalment isnt recovered
the branch manager takes charge of the situation. If the member still defaults
regional manager tries to recover from the group.