Operating Model

Eligibility Criteria

* In JLG member should be a woman.

* The household income of members in rural area should be no more than Rs. 100,000/- per year and that in semi urban or urban area it should be no more that Rs. 160,000/- per year

* At least 2 years of residence in branch area of operations, Residence – 25 kms within branch radius.

Evaluation by a Pahal’s Branch Manager indicating acceptance to adhere to the company’s rules and regulations and show willingness and ability to pay regularly.

* One Loan per household at a time.

* Members are not enrolled who have borrowed from more than 2 MFIs or have loans outstanding greater than Rs.50,000

* Business model provides for migrating of JLG borrowers to Enterprise Lending borrowers.

Client Selection Process

Group Formation

* After mobilization of the group among themselves the potential customers get in touch with the FCO and together they fix the date, time and venue for the

* In the meeting FCO explains the products and its terms and condition.

Home Verification

* Visit to the residence of the applicant by staff to assess the livelihood condition of the applicant.

Reference Checks

* Reference checks done by the Branch Manager gives ideas about the customer’s integrity and expected behavior.

Continuous Group Training

* After being organized in a centre the members are trained on the objective, rules, regulations, systems and procedures of the credit program.

Loan Approval & Disbursement Process

Credit Evaluation

* Credit Information of Joint Liability Group loan clients are checked at Highmark/Equifax credit bureaus while information of individual loan clients are checked at CIBIL Credit bureau.

* Any client with >2 loans outstanding , Overdue history or >50000 outstanding is rejected.

Group Recognition Tests

* 2 days of Continuous Group Training.

* Group Recognition Test’s (GRT) are carried out by an authorized rank or branch manager.

Loan Sanction

* After completion of the GRT, the loan application of the group and GRT records are sent to the Head Office for the credit committee review.


* The disbursement will take place in the branch and all group members should be present.

* BM disburses the loan amount in Cash to client and makes an entry of the disbursement in the disbursement registrar with the customer signature.