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TO STUDY THE OD TREND IN SAIJA AND

PREPARE STRATEGY TO DAILY


MONITOR AND REDUCE OD...
Presented by: Nikhar Agrawal
Under guidance of: Mr. Soubhagya Ranjan

Overview
Microfinance institutions serve some of the
worlds most needy.
A significant challenge facing these institutions
is the battle for financial self- sufficiency.
This includes controlling all the risks in the loan
portfolio.
In addition to adequate collection, timely payments
provide for a greater extension of funds to other
poor people, resulting in further outreach and
development.

Defaults or
credit risk

Who are our


customers?
Common and major
problem of MFIs.
Micro lending is
inherently risky.
As it works on group
guarantee and not
collateral.

A key to achieving scale and operational and


financial self sufficiency is to reduce the percentage
of loans in arrears.
In 2013 PAR rate was .01% which increases to .47%
in 2016.
To maintain good portfolio quality, microfinance
professionals must understand
(1) What causes arrears
(2) Its impact
(3) How it can be reduced.

WHAT CAUSES ARREARS

Possible reasons
Improper follow-up by staffs
o Gaps in process
o Poor screening of clients
o Creating personal relation with clients
o Local posting of Field Executives
o Field staff dont immediately report if there is
any about to delay.

Other Reasons
o Fake information given by the client(UID)
o Influence of one group on other.
o Inconvenience in collecting from every single
client.
o Insurance clearance is very slow.
o Clients business not working well
o Client also take loan to pay off previous loan.

Patna Main Branch


Frequency
25
20
15
10
5
Frequency
0

Danapur Branch
Chart Title
9
8
7
6
5
4
3
2
1
0
Frequency

IMPACT OF OVERDUE

Image of company and confidence in micro-credit gets


lost.(from both client and investors POV)
Mental unrest of the employees and board members
increases
Loan limit to the company may get reduced and
investors try to take out their money from that
company.
Interest rate may increase for that company.
Loan distribution circle gets affected.(not enough for
disbursement)
Low presence of clients in the meetings.(because of
overdue of one client, the other dont show up in
meeting )

Indiscipline among members may increase and


confidence gets deteriorated.
Personal and family prestige gets hampered and also
welfare gets affected and hardship prevails there.(in
many cases what actually happens because they are
poor they dont know how to use money and expend
that in useless things and unable to pay instalments
and finally question their prestige)
Loan limit for clients also gets reduced which in turn
will impact company negatively.
Stringent steps can be taken to reduce the overdue
which otherwise should not be taken.
The organization gets affected a lot.

WHAT STAFFS DO TO
COLLECT OVERDUES

Motivating client to pay their dues.


Enticing clients.
Talk to family members.
Telling them about Highmark list.
Door to door verification
Proactive strategies (Group meetings are held to
literate clients)

SUGGESTIONS

Proactive Strategies
- Process gaps should be checked upon (ensuring CGT
and GRT are done properly, client attendance i.e. at
least 80% should be present there in meeting, Filtration
of client should be done properly i.e. thorough checkups
of id like in many cases client face is not clear or photo is
missing which shows fake part of them.)
- ABM should asked to make video of whole GRT process.
- Reduce work load per FE so that they can be both
mentally and physically healthy and work better on
clients.(just like Bandhan per FE 8 meetings)
- There should be rotation of F.Es on certain intervals as
decided by authorised person.

- There are only 2-3 process trainers in Saija, it is


suggested that every unit should have at least 1
process trainer with the critical one having 2.
- Loan Utilisation Check should be properly
worked upon (because client dont use loan
properly, they take more than what they need
and use for personal use which ultimately
creates default)
- Meeting timing should be worked upon.

Other strategies
- Mandatorily OD register should be maintained
at every critical branch and thoroughly checked
by UM.
- Staffs should be penalised for every delay on day
basis.
- If possible Saija should create Special Recovery
Team.

Thank You

APPENDIX

BRANCH

GRP. KIND

LOAN CYC.

CenterName

GRT BY

PATNA MAIN

SKR

SAI

REENA VERMA

PATNA MAIN

SKR

SHIVA

PATNA MAIN

SMR

ALLI

PATNA MAIN

SMR

ANIKET

PATNA MAIN

SMR

DEEPAK

PATNA MAIN

SMR

DIPEEK

PATNA MAIN

SMR

EKTA SATHI

PATNA MAIN

SMR

HANUMAN

PATNA MAIN

SMR

HIRA

PATNA MAIN

SMR

JHANSHI

PATNA MAIN

SMR

JUHI

PATNA MAIN

SMR

KANGAN

PATNA MAIN

SMR

KIRAN

PATNA MAIN

SMR

KRANTI

PATNA MAIN

SMR

MAHABHARAT

PATNA MAIN

SMR

MAHAGAURI

Remarks

Death case
Delay payment
because insurance
SANTOSH KR
department
Delay payment
SANTOSH KR
from client side
Delay payment
NAGENDRA KR from client side
Delay payment
NAGENDRA KR from client side
Delay payment
MD HASEEN KHAN from client side
Delay payment
SANTOSH KR
from client side
Delay payment
RAVINDRA KR
from client side
Delay payment
NAGENDRA KR from client side
Delay payment
NAGENDRA KR from client side
Delay payment
SANTOSH KR
from client side
Delay payment
SANTOSH KR
from client side
Delay payment
NAGENDRA KR from client side
Delay payment
NAGENDRA KR from client side
Delay payment
NAGENDRA KR from client side
Delay payment
NAGENDRA KR from client side

PATNA MAIN

SKR

MAUSHAM

SANTOSH KR

PATNA MAIN

SMR

MONI

NAGENDRA KR

PATNA MAIN

SMR

PAYAL

NAGENDRA KR

PATNA MAIN

SMR

RADHIKA

NAGENDRA KR

PATNA MAIN

SKR

SAI BABA

REENA VERMA

PATNA MAIN

SMR

VAISHNAVI

SANTOSH KR

PATNA MAIN

SMR

VERSHA

SANTOSH KR

PATNA MAIN

SKR

DHARKAN

NAGENDRA KR

PATNA MAIN

SKR

DILLAGI

NAGENDRA KR

PATNA MAIN

SMR

GARIB NAWAJ

SANTOSH KR

PATNA MAIN

SMR

KRISHNA

NAGENDRA KR

PATNA MAIN

SKR

SAGAR

REENA VERMA

Delay payment
from client side
Delay payment
from client side
Delay payment
from client side
Delay payment
from client side
Delay payment
from client side
Delay payment
from client side
Delay payment
from client side
Denied payment
due to piplining
Denied payment
due to piplining
Denied payment
due to piplining
Denied payment
due to piplining
Denied payment
due to piplining

PATNA MAIN

SMR

CHAND

REENA VERMA

Omni error

PATNA MAIN

SMR

SUDHA

Omni error

PATNA MAIN

SKR

UNNATI

REENA VERMA

Omni error

PATNA MAIN

SMR

ADARSH

SANTOSH KR

Staff Issue

PATNA MAIN

SMR

ASTHA

SANTOSH KR

Staff issue

PATNA MAIN

PRIYA

SANTOSH KR

Staff issue

Branch

Grp. Kind

Loan cycle

CenterName

FE/CGT/GRT BY Remarks

DANAPUR

SKR

SANTOSH

DANAPUR

SKR

AYUSH

DANAPUR

SMR

UDDAN

DANAPUR

SKR

NAV NIRMAN

DANAPUR

SMR

KHAWAJA BABA

DHIRAJ/DHIRAJ/REE Business was not


NA
working well
SATEYNDRA/SATEY Client taken money
NDRA/ASLAM
and ran away
Collctd. Light -customer was not
known about
AJEET/--/REENA
instalment due
Collected but
SATEYNDRA/SAT./A collection sheet
SLAM
missing
Collected but no
name on collection
ANIL/ANIL/ASLAM sheet

DANAPUR

SMR

RAJA BABU

ANIL/ANIL/ASLAM

Death case

DANAPUR

SMR

RAM RAHIM-2

Death case

DANAPUR

SMR

SHUBHAM

ANIL/ANIL/ASLAM

Death case

DANAPUR

SMR

SURAJ

DANAPUR

SKR

RADHE RADHE

DANAPUR

SKR

PANCH MUKHI

DANAPUR

SMR

SANTOSHI MAA

DANAPUR

SKR

SANTOSH

DANAPUR

SKR

B.P.L

AJEET/--/REENA
Death case
DHIRAJ/DHIRAJ/REE Death case, unity
NA
in community
SATEYNDRA/SAT./A Delay payment
SLAM
from client side
RAKESH/RAKESH/R
EENA
Insurance case
DHIRAJ/DHIRAJ/REE
NA
Left home
Local posting of F.E
due to which late
payment, no

proper follow up

DANAPUR

SMR

DEVI MAA

Omni error

DANAPUR

SMR

GAYATRI

DANAPUR

SKR

KRISHNA

DANAPUR

SKR

KRISHNA JI

Omni error
SATEYNDRA/SAT./A
SLAM
Omni error
SUDAMA/SUSHMA/
REENA
Omni error

DANAPUR

SMR

MAA DURGA

DANAPUR

SMR

PUJA

DANAPUR

SMR

SANGAM

DANAPUR

SMR

VISHNU

DANAPUR

SKR

ASHOKA

DANAPUR

SMR

ANURADHA

DANAPUR

SMR

JAY MATA DI

DANAPUR

SMR

PRINCE

DANAPUR

SMR

MUSKAN

DANAPUR

SKR

VIKASH

Omni error
DHIRAJ/DHIRAJ/REE
NA
Omni error
AJEET/AJEET/ASLA
M
Omni error
RAKESH/RAKESH/R
EENA
Omni error
Pipelining, client

ran away
Pipelining, staff
casualty, personal

relation
Pipelining, staff
casualty, personal

relation
Pipelining, staff
KUNAL/SUSHMA/AS casualty, personal
LAM
relation
SUDAMA/SUSHMA/
REENA
Piplining
DHIRAJ/DHIRAJ/REE
NA
Piplining

DANAPUR

SMR

USHA

KUNAL/SUSHMA/AS Pipelining, Loan


LAM
from other MFIs