SHARE’s business model generates greater economic benefits by way of supporting the development of micro-entrepreneurs and their communities in a complex economic situation, while at the same time fostering a responsible financial culture.
SHARE's Loan Methodology
JLGs (Joint Liability Groups) are central to the lending methodology that SHARE has replicated. This methodology involves a one-on-one orientation, personalized service, in order to provide maximum client satisfaction.
The loans have to be repaid in weekly/monthly installments. There is no collateral to back these loans and repayment is ensured through group responsibility and onus. To ensure that the loan is utilized only for the intended purpose, money is given in a staggered manner to the group members and subject to satisfactory assessment by the field credit officers. After clients have formed groups of their choice and agreed on the income generating activity they would like to pursue, SHARE assists its members by equipping them with basic business development skills such as Pricing, Marketing and Quality Management. Field staff members facilitate weekly/monthly group meetings, in which members undertake the responsibility of approving loans and repayments. Members go through additional social development programmes that cover topics ranging from children's education to health, nutrition and sanitation.
- SHARE's members learn about the company's loan delivery method through a public orientation meeting that briefs them on loan disbursements and related procedures.
- Using the JLGs (Joint Liability Groups) methodology, Group lending technique is used to extend loans to women members who have formed themselves into group of 5 members each, with certain general criteria as per company and RBI norms.
- Once a group of five members is formed, the new members will have to undergo Compulsory Group Training for a period of five to seven days which covers topics related to principals & responsibilities of the individual client and the group in sanctioning and availing a loan, financial education, calculation of principle & interest, loan disbursement, repayment modalities, business development skills etc.
- After the Compulsory Group Training , the group will further undergo a Group Recognition Test, by the senior officers of the company who assess the quality and preparedness of the group to take up income generation projects with the financial support from the company. Once the group is recognized, it will be attached to a centre at the village.