WELCOME

spandana sphoorty financial limited

What is Microfinance

• “Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services.”

Features of Microfinance:• Borrowers are from the low income group• Loans are of small amount – micro loans• Short duration loans• Loans are offered without collaterals• High frequency of repayment• Loans are generally taken for income

generation purpose

NAME MEANING• Spandana stands for

‘responsiveness’. Spandana started as a response to a need and an opportunity

• Sphoorty stands for ‘inspiration’ – this exemplifies the growth of Spandana in provision of larger bouquet of financial services to larger client base.

SPANDANA VALUESTRICS exemplifies our core values - • Transparency - Maintaining simplicity and clarity in all

activities and operations, so that high standards of fairness can be established in all the dealings.

• Responsiveness-Constantly working to identify the changing needs of clients and potential clients, and developing suitable products and services to address these needs thus keeping Spandana ahead of its competitors.

• Integrity -Maintaining high standards of conduct, truthfulness and honesty in all dealings, in order to honour the commitment made to our clients and organisation.

• Commitment -Performing all activities and tasks with professionalism and enthusiasm in order to give the highest level of client satisfaction and optimal efficiency.

• Team Spirit-Working together as to create synergy that results in exponential growth.

6

SPANDANA HISTORY1997, Guntur Town, Andhra Pradesh, India. During a hot summer afternoon, when most of the women would prefer a siesta, Mrs. Padmaja Reddy saw a rag-picker woman on the street buying household reject items on a push cart. Her entrepreneurship made her curious.

Speaking to her, Mrs. Padmaja Reddy realized that the lady was working very hard but not getting commensurate returns. Despite her efforts, she was able to provide only one meal to her family. This was mainly because the lady was paying an exploitative daily rent for the cart that cumulatively far exceeded the cost of buying scores of such carts. The lack of access to affordable and serviceable capital was leaving little alternative options for her. While a bank would never provide credit to her on many accounts, the money-lender was far too exploitative.

Mrs. Padmaja Reddy decided to lend her a little money, enough to buy the cart. The money was given with a promise of timely and reasonable repayments. The hard working woman started using her new self-owned push cart, she could save on the rent cost and repaid the money conveniently from her increased returns. Now this women could afford better meals for herself and her children. She also spread the word that there was an organization which was helping economically active women with loans. It seemed to strike the right chord with several low-income people, and soon there were many waiting to get such loans at the doorstep.

Missionwe want to be one of the top 2 global Micro

finance Organization by 2012, offering a range of financial and non financial products and services to low income households and individuals to improve the quality of life. we

constantly Endeavour's to deliver quality services to our customers and remunerative

returns to our investors by maintaining highest levels of transparency and integrity. We strive to be the most preferred employer

in the industry."

Mission specifies • Women • Clients living in rural areas • Clients living in urban areas

Development Goals• Increased access to financial services • Poverty reduction • Employment generation • Growth of existing businesses • Development of start-up enterprises • Gender equality and women's empowerment • Improvement of adult education • Health improvement • Children's schooling • Housing • Youth opportunities

Poverty Target• Very poor clients • Poor clients • Low income clients

Range of Products and Services• Financial products and services credit products offered:• Microcredit loans for microenterprises • Microcredit for household needs/consumption • Loans for agriculture • Loans for education

Voluntary Insurance product offered• Voluntary credit life insurance

Lending Banks

Equity FundsInsurance

Companies

branch

Credit Assistant

Spandana

Deploy in the household cash-flows

Repayment

Loan Repayment

Survey a Village

Service at doorstep

Capital/ Debt

Repayment

Partnerships

Borrowers

Formation and training of groups

Invest in Productive

Assets

Village Selection

Group Formation (8-10 Clients) and Training

Center Formation

Financial Services at the Door Steps

BUSINESS MODEL

INDIAN MFI UNIVERSE comprises of very few large MFIs but large number

of small players

Large size MFIs(AUM > Rs.500 cr)

Medium size MFIs (AUM Rs.100 to 200

cr)mF as a segment of

overall businessNot-for Profit

MFIsStartups/ Small regional players

123456789

10

SpandanaSKS Share BandhanAsmithaEquitasUjjivanASA-Gram VidiyalBasixGrameen Koota

Future FinancialESAFSatinTridentSahayataAarohanSonataBWDA FinanceShardaAwareness

L&T FinanceSEILFullerton

CashporSKDRDPSanghmitraIVDP

SuryodayaAsomiVistaar

It is estimated that there are over 13,000 MFIs in this

group of startups, not-for profits or the for-profits that

have not managed to achieve a critical scale.

Very few scaled/ scalable MFIs exist.

13

Credit Assistant Credit assistant are the base of the spandana

As we know every big building has a base and only the strong base can give beautiful shape to any building.same as in spandana credit assistant play very vital role for the Business.Because CA are, of those employee who are close to customer.

UPPERLEVEL (CEO,MD,VP AND ALL)

MIDDLE LEVEL (MANAGER AND OTHER)

LOWER LEVEL(CREDIT ASSISTANT)

Schedule of the credit assistant

DAY OF A CA

.       Key activities performed by a CA

• CA Responsible for identifying villages, conducting village surveys, and introductory meetings (along with the Branch Managers).

1. Responsible for formation of groups (members/borrowers) for the growth of the organisation2. Responsible for imparting training to prospective borrowers.3. Responsible for taking the loan application of the members. His recommendation would be the key

input for arriving at a loan decision.4. To conduct centre meetings as per scheduled time and at a scheduled place.5. Responsible for sincerely carrying out, all the responsibilities allocated to him/her by the Branch

Manager or Head Office from time to time.6. Responsible for the cash collected and cash taken for disbursements in the centre meetings, till it is

properly handed over to the Cashier at the Branch office. 7. Responsible for the following documentation/System work at the branch

1. Filling up of centre registers, loan cards, Applications and LD vouchers2. Entry of recovery, LD and preclosed loan details3. Submission of cash as per collections with denomination slips, updating DCB, DFS4. Entering centre wise R&P in SIMS-GL5. Update operations register, Movement Register, TA Book on a daily basis

8. Responsible for the publicity of the organization at the village level. Credit assistants should spread information about all the loan products of the Organisation to the people.

9. Responsible for training new staff who get allocated to him/her, as a part of the training program.

• Delinquency Management: In case of delinquency / default, CA has to manage the situation diplomatically without hurting the feelings of borrowers. He should motivate other group members to help the delinquent client as promised at the time of loan disbursement. CA should inform the BM well in time and seek his support as required. CA should not become impatient and shout at the borrowers. He should not leave the slum / village without recovery. CA as demanded by the situation, should wait until the group collectively manage to repay the installment. If the CA knows that a loan would fall delinquent, he should go and meet the client one day before the centre meeting and motivate her to repay loan on time. If the delinquent borrower has some genuine reason to delay / default the repayment, CA should discuss with the BM and well in advance and give her the required support.

Dataflow from client level transaction to monthly reports.

• Filling up of centre registers• Submission of cash as per collections with

denomination slips, updating DCB, DFS• Cash book (day to day)• Operation register – progress

l/d, complete loan, recovery, total old loan, ALR closingby BM n check by RM

• General ledger = outstanding, recovery

Who fills what?• Movement = every employee• Centre Register = CA• DCB = ca (check by BM)• DFS = CA (check by BM)• cashbook = CA or BM• Operation register = CA or BM• Acquaintance register (salary detail stamp) by Bm• Application form = CA (approve by BM)• Attendance register = by BM• Auditing remarks register = auditor• BM activity plan = by BM• CASH FLOW STATEMENTS (DCB & DFS)• Cash receipt and payment register=CA OR BM• Operation register = CA or BM

• Members dropout details register = CA or BM• General ledger (chashier)• Ca plan (every CA)

Points of check /verification• BM/RM should checks each and every

ALR adjustDFScentre visit checkcash checkDCB ALR adjust register check why happenmovementmembers attendance

THANK YOU