Sitbe Finance Service Private Limited
Loan Criteria
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Loan Eligibility Criteria
Following general points are compulsory for eligibility of loan:
- Applicant Should have valid KYC.
- Having the ability to run/ initiate business activity having age between 20-60 years
- Applicant should be economically active.
- Applicant Should have good social and moral character in his community.
- Applicant Should have capacity to Provide two guarantors other then family members.
- Applicant Should be resident of Operational area of branch office which might be around 10-15 km radius.
Lending Methodology
- Group lending
- Individual Lending
- However, decision of Lending Methodology depends upon the Loan Product as well as Project Specific requirements.
Group Lending
Group lending includes disbursement loans among groups of men and women who are looking forward to enhance their family income but are unable to do So due to Scarce resources. in group Lending Methodology groups of 3 to 6 members will be formed, all group members would guarantee Loan and credentials of each other. Group Lending enables group members to resolve mutual understanding and decision making. Before applying for a Loan, applicant is Supposed to constitute a group of 3 to 6 members residing nearby to each other and members Shouldn’t be close relatives to each other.
Individual Lending
Individual lending includes disbursement of Business Loan among individuals. Loans are offered to certain individuals that fulfill the eligibility criteria of Scheme in order to facilitate them to meet their needs through interest free Loans. In case individual Lending two quarantors will be provided by Applicant for availing interest free loan.
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Following doum documents shall be Submitted along with loan application:
Copies of KYC
- Applicant (Mandatory)
- Guarantors (Mandatory)
- Family Memben (optional)
Objectives
- For Identification
- For verification in Management information system (MIS)
- Bank Requirement for collecting Money
Latest utility Bills.
- Applicant (Mandatory)
Objectives
- For address verification
- To assess payment Behaviors
Latest Photo
- Applicant (Mandatory)
Objectives
- For Identification.
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Application Submission
The Loan Process will start with the Submission of application. The Application fee may very from Scheme to Scheme. The unit Managers will then evaluate the application through eligibility Criteria. Thus, these loom will be given out on Social collateral. The following steps. will be followed in Application Submission. Applicant will visit sitbe branch along with his/her relevant documents (mentioned below) for Submission of Loan Application.
unit manager will discuss with the Applicant to cheak whether applicant falls under eligibility criteria of the Scheme.
Potential candidate will submit Loan application on prescribed form. Loan application will be Provided and filled by sitbe Staff in branch office.
unit manager will be cheak documents and application will be processed often completion of required documents.
Potential candidate will submit Loan application on prescribed form. Loan application will be Provided and filled by sitbe Staff in branch office.
unit manager will be cheak documents and application will be processed often completion of required documents.
The following are the details of collaterals that may be applied for loans:
1. Personal responsibility
2. Two quarantors.
3. Post dated cheques.
4. any additional collateral in special case.
Social Appraisal
Social appraisal aims to verify character and credibility of the applicant by visiting his residential place. Afte receiving the application, unit manager Performs Social appraisal through following methods.
1. information from existing borrowers
2. From the Living style of the applicant
3. views of neighbors about the applicant
4. Personal interview/family interview
Business Appraisal
Through the Scrutiny of business plans the business idea of the intended borrower will be evaluated to see if it is viable and whether it can generate income beyond the house hold expenses sufficient for loan repayment. Business requirement is evaluated in business appraisal. This will also help fine-tune the applicant’s family will also be interviewed to make Sure that they know about the loan and Support the business idea.
Second Appraisal:
After initial appraisal by the unit Manager, the application will be forwarded to Branch Manager who will appraise the Social and business appraisal Process Once again and conduct a meeting with borrower and their guarantors.
Guarantors of Loans:
in cases of individual Lending every applicant will provide two quarantors who vouch for his/her credentials and accept the responsibility of monitoring the borrower and give assurance to persuade the borrower for timely payment of Loom. Whereas in group Lending the members of the group would guarantee each other and this formally Constitute a group.
Loan Disbursement
Disbursement may also be made by direct transfer of money into respective bank account of beneficiary depending upon the nature of the project and amount of the Loan. for Disbursement purposes, any other verifiable mechanism may be adopted on the discretion of the Sitbe.
Recovery & Follow up.
Once the loan is disbursed, the unit Manager monitors the client with regular visits at his place of work. The Loan repayment has to be made at the branch till the 5th of each month. If payment is not received by the 10th, the Unit Manager visits the client to remind and if repayment is still not made the guarantors are
contacted and asked to make the payment.