MicroStart: A Guide for Planning, Starting and Managing a Microfinance Programme.
CHAPTER THREE
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C. LOAN PAYMENTS

1. Sample Passbook
2. Sample Transfer Report
3. Cash Handling
4. Posting Receipts

In earlier chapters you learned how to form Credit Groups and approve loans. Once funds have reached your customers, the repayment cycle begins.

(1) Sample Passbook

The Group Treasurer is responsible for collecting and recording payments from borrowers. Borrowers want a receipt for the payment and want to see the payment in the Group Treasurer's records. Two simple forms can accomplish these tasks. Passbook
For each borrower, prepare an index card with a centre fold to record weekly payments and keep track of the outstanding balance. Generally, the Group Treasurer makes entries for the date and payment and calculates the new outstanding balance. The Group Treasurer (or Field Agent) should initial the passbook with the borrower

Group Name Rising Star Payment $12.00
Name Maylin Ton Every Wed
Loan Amount $100.00 Until 21 May
Payment Date due Total Due Date paid Total Paid Balance Initials
Disb. 1 -Jan-97 zero 1-Jan-97 zero 120.00 RR MT
1 15-Jan-97 12.00 15-Jan-97 12.00 108.00 RR MT
2 29-Jan-96 12.00 29-Jan-97 12.00 96.00 RR MT
3 12-Feb-97 12.00 12-Feb-97 12.00 84.00 RR MT
4 26 Feb-97 12.00 29-Feb-97 12.00 72.00 RR MT
5 12 Mar-97 12.00 12 Mar 97 12.00 60.00 RR MT
6 26 Mar-97 12.00 29 Mar 97 12.00 48.00 RR MT
7 9 Apr-97 12.00 11 Apr 97 12.00 36.00 RR MT
8 23 Apr-97 12.00 23 Apr 97 12.00 24.00 RR MT
9 7 May 97 12.00 7 May 97 12.00 12.00 RR MT
10 21 May 97 12.00 21 May 97 12.00 00 RR MT


Please see attachment VIII of the Tool Kit for forms.

(2) Sample Transfer Report

Transfer Reports
The Group Treasurer (or Field Agent) records each payment in the Transfer Report to track the repayment of the group's loans. It lists the borrower's name, the payment amount and the date the payment was received. The name of the group and the Group Treasurer (or Field Agent) is written at the top. The Field Agent collects the Transfer Report to carry the information back to the office for posting.

BORROWER'S NAME PAYMENT DATE
1. Maylin Ton $12.00 12 Mar 97
2. Tim Lee $12.00 12 Mar 97
3. Uma Batsumi $12.00 12 Mar 97
4. Tony Cedras $12.00 12 Mar 97
5. Baki Yaga $12.00 12 Mar 97
Total Payment Collected $60.00
Total Deposited $60.00 12 Mar 97
Transferred to Field Agent $60.00 16 Mar 96


Please see attachment IX of the Tool Kit for forms.

(3) Cash Handling

Up to this point we have discussed only the transfer of payment records. What about the transfer of actual cash? The handling and safeguarding of cash depends greatly on specific circumstances, but a few general procedures can be applied. In all cases be sure you have a receipt. (See attachment XIII of the Tool Kit for forms.)

If available, the Group Treasurer should deposit the weekly cash payments in a bank or other secure depository. If no bank is available, methods must be developed to safeguard cash payments in a locked cash box kept in a secure location.

We recommend that disbursement be made via bank cheques or drafts and, whenever possible, that clients make their own payments using receipts as evidence. if Field Agents are required to collect funds, this activity should be conducted during meetings, with appropriate signatures as noted in the forms provided.

(4) Posting Receipts

Following each field visit, Field Agents will give the Transfer Reports and any cash collections to the Loan Manager.

The Loan Manager updates each borrower's account by posting the payments from the Transfer Reports to the Ledger These documents were described earlier in Organizing Credit Records.

The Bookkeeper will also post transactions from the Transfer Report to the Transaction Journal. This process is described in Section E of this chapter entitled Accounting.

Notice that, if the Loan Manager posts entries to the Ledger and the Bookkeeper posts the same transactions to the Transaction Journal, the principle of checks and balances is preserved.

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