(4) Forming Credit Groups
The group formation and
certification process may require a
few visits to a particular community.
Each step may involve more than
one meeting. In general, Field
Agents should allow a few weeks to
form a group and may facilitate the
formation of several groups within a
community simultaneously, thus
using time in that community
efficiently. Whether forming one
group or several, the process is the
same:
Promotional Visit to a
Community
A Field Agent
visits community leaders to
enlist support and distribute
flyers.
Information Meeting
A Field Agent holds an
"information" meeting" in a
public place to describe the
programme.
Group Development
Meeting(s)
A Field Agent
facilitates the formation of and
screens prospective groups of 5
to 15 clients.
Application Meeting
Group
members complete individual
loan applications. The
Field Agent helps members
review their first loans. The group
makes loan approvals.
Site Visits
The Field Agent visits
each household to verify
information on the application.
The Field Agent, if satisfied,
signs off on the loan
applications.
Group Certification
The Manager visits the
community and determines if
each group is ready to borrow by
conducting interviews with
groups to ascertain their
knowledge of credit rules and
procedures, as well as their own
economic activities. If the Loan
Manager is satisfied, the group
receives a Credit Group
Certification Form, a procedure
done only once per group.
Staff Reviews
Field Agents and the Loan
Manager meet periodically to
present group applications. The
purpose of the meeting 'IS to
ensure paperwork is in order.
Loan Processing
The Loan Manager gives
paperwork to the accounting staff for loan processing.
Loan Disbursement/Repayment
Depending on arrangements with
local banks, disbursements and
payments are best done in full
view of the groups with
appropriate documentation as
recommended in Chapter 3:
Managing.
Loan Approval for
Subsequent Loans.
Once the
first loan cycle is complete, the
Field Agent works with the
groups to assist with Loan
Applications and site visits for
the next loan cycle. The Field
Agent does not need to certify
the group for each loan cycle.