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Bharat Financial Inclusion Limited follows the Joint Liability Group (JLG) model. This it does without any bias of caste or religion. The methodology involves lending to individual women, utilizing five member groups where all the members of the groups serve as guarantors for each other.

Bharat Financial Inclusion Limited’s approach is to provide financial services at the doorstep of its members in villages and urban colonies. This system provides convenience and saves time and cost of travel to mainstream banks and enables Company employees to provide timely service by way of disbursements and collection facility to its members.

Bharat Financial Inclusion Limited’s loan sizes are designed keeping the cash flows of its members and their repayment capacity. The weekly collection facility is welcomed by Bharat Financial Inclusion Limited members considering their daily cash flows, absence of proper saving mechanisms, the time and costs involved in traveling to the banks to deposit their daily savings. Initially, members are offered small loans to inculcate the habit of daily savings, credit and center discipline. Interest and loan repayments designed for ease of understanding and repayment.

In all the processes from village selection, selection of members, training of members, loan disbursal and instalment collections, Bharat Financial Inclusion Limited follows a well-defined, transparent process in its operations. Details of Bharat Financial Inclusion Limited’s operational methodology are captured below


Before starting operations, Company employees conduct village surveys to evaluate local conditions like population, poverty level, road accessibility, political stability and means of livelihood.


After a village is selected, Company employee introduces the Company, its purpose, terms of association, its methodology, products and services to all the village folk to enable them to take an informed decision. The attendees to the meeting are encouraged to make enquiries with other existing members and understand Company’s operations before making decision to become Company’s members/ borrowers.


Women form self-selected five-member groups to serve as guarantors for each other. Experience has shown that a five-member group is small enough to effectively enforce group peer support and, if necessary, large enough to cover repayments in case a member needs assistance.


CGT is a two-day process consisting of three-hour-long sessions designed to educate clients on Bharat Financial Inclusion Limited’s processes and procedures and build a culture of credit discipline. Using innovative visual and participatory teaching methods, Bharat Financial Inclusion Limited’s employees introduce clients to the Company’s financial products and delivery methods. CGT also teaches clients about the importance of collective responsibility, how to select group leaders, how to sign and a pledge that serves as a verbal commitment of the members towards their Center and their fellow members. During this training period, Company employees collect quantitative data on each client to ensure the qualification requirements are met, as well as record base-line information for future analysis. On the second day, clients take a “Group Recognition Test” conducted by the Branch Manager. On clearing this verbal test, they are officially accepted as Company members.


A Center can commence operations with a minimum of 4 groups (20 members) and a maximum of 10 groups (50) members. These Center Meetings are conducted weekly at fixed locations convenient to all the members. All financial transactions are conducted at the Centre Meetings in the presence of all the members. Meetings are held early in the morning, to minimize interference with the daily activities of the clients.

A Center Leader and a Deputy Center Leader are selected to facilitate meetings and ensure compliance with the Company procedures. In addition to financial transactions, members use the weekly meetings to discuss new loan applications. Centre meetings are conducted with rigid discipline to sustain the environment of credit discipline created during CGT.


Cash loans are given to the members to be utilized only for Income Generation Activities and not for consumption. The loans given to the members are verified by the staff of Bharat Financial Inclusion Limited to check if the same have been utilized for stated purposes only. Members are advised to utilize the loan amount within a maximum period of 30 days failing which they would be required to return the loan amount to the Company.

Methodology Process