Micro Credit Disbursement Process:

1. Area Identification:

• Demand driven
• Baseline survey/poverty score cord.
• Competition/sector (agriculture, livestock , commerce)

2. Social Mobilization:

• Identification of proper contact person
• General awareness of people about program

3. Community Meeting:

• Arrangement of the meeting for the community
• Introduction of Organization and its programs
• Introduction about detail Loan Policy
• Share eligibility criteria

4. Loan Group Formation:

• Needy people form group for getting loan
• Selection of deserving people.

5. Form Filling:

• Form filling in done at clients place/Business place
• Visit Business place and residence separately
• Group member guarantee
• Guarantee from client’s family members

6. Appraisal:

• Technical and social appraisal of client
• Verification of Information provided by clients

7. Document preparation:

• Disbursement form
• Promissory Note
• Stamp paper of Rs. 20
• Pass book
• Loan sanction paper
• Cheque preparation

8. Loan Disbursement:

• Stamp paper is read before client so their recovery should be on time, proper utilization and surcharge in case of late recovery is made clear
• Signature of client on document after their complete understanding of all the clauses in documents
• Distribute passbook
• Then distribute cheque

9. Regular Monitoring:

• Appraising within 15 days to ensure proper loan utilization by ME-R&T
• Loan utilization form filled by ME-R&T
• Evaluation is done individually at their business places

10. Monthly Meetings:

• Monthly meeting is conducted on monthly basis
• Purpose of group meeting is social
• In these meetings discussion about their problems /issues at village level are to be shared
• Prioritize their needs and problems
• Attendance record is maintained by community

11. Recovery Follow up:

• Recovery reminder call before every installment
• If recovery is not received on due date, then a group meeting is called to collect the recovery from group