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Our Methodology

SMILE’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.

SMILE's Loan Methodology

JLGs (Joint Liability Groups) are central to the lending methodology that SMILE has replicated. This methodology involves a one-on-one orientation, personalized service, in order to provide maximum client satisfaction.

• SMILE'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 three to five days which covers topics related to principals, responsibilities and rights of the individual client and the group in sanctioning and availing a loan, financial education, calculation of principle & interest, loan disbursement, repayment modalities, grievance readreseal, 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 center at the village.

The loans have to be repaid in fortnightly 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, SMILE assists its members by equipping them with basic business development skills such as Pricing, Marketing and Quality Management. Field staff members facilitate fortnightly 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.

Eligibility criteria

• In JLG member should be a woman.
• The household income of members in rural area should be no more than Rs. 1,25,000/- per year and that in semi urban or urban area it should be no more that Rs. 2,00,000/- per year
• At least 2 years of residence in branch area of operations, Residence – 25 kms within branch radius.
• Evaluation by a SMILE’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 loan amount greater than Rs.1,25,000/-
• Business model provides for migrating of JLG borrowers to Enterprise Lending borrowers.

Products

SMILE believes in innovation as a tool to offer customized products and services to address the needs of its clients. Through its products and services, SMILE endeavors to include and value poor indigenous population into economic activities by supporting productive projects, which allow its clients to increase their income and reap benefits for their families and communities.

SMILE offers - Group Loans. Group Loans are used by women, for income generating activities. SHARE has created this product with an intention to build deeper relationships with clients who want to grow their businesses, and at the same time expand the client base by reaching out to new clients.