G U FINANCIAL SERVICES PVT LTD (GUFSPL) registered as a Non- Banking Financial Company- Microfinance Institution, is a home grown and one of the leading organization in the coastal belt of Odisha to offer micro loans ranging from INR.12,000 to INR.75,000 under various customers’ need based products including Sweet Home for house repairs/renovation or extension, Nirmal for water, sanitation & Hygiene, Samrudhi for micro enterprises and (IFF) Integrated Fish Farming.
GUFSPL has been providing micro credit services since 2008. It registered with RBI in the year 2013 and incorporated in the year 1989 under the companies Act, 1956. It converted to NBFC-MFI on 22nd August, 2018. GUFSPL is a prominent venture for financial inclusion aspires to provide products and services in micro credit space in order to promote financial inclusion in Odisha.
GUFSPL presently operates in 42 branches spread across 17 districts of Odisha and 1 district of Chhattisgarh. As of 31st AUG, 2022, the Company has disbursed cumulatively loan amount of INR 674.95 Cr. to 227300 women clients achieving Gross Loan Portfolio of INR 114.62 Cr. GUFSPL aims to make its presence remarkable in Odisha as well as other contiguous states in the upcoming years.
Loan Origination Process: Organizing Group Meeting:
After the formation of the Groups on getting the minimum required membership of 4 members CO will give a name to the Group and formally declare the Group. Let the Group members fix up a suitable venue like a club house, village community hall etc. and declare a convenient date and time suitable to both the Group members and the Credit Officer. On finalizing the date, time and venue, convene the first meeting to be attended by all members, Discuss with them the purpose and benefit of forming the group, the necessity of regular meetings, internal lending among themselves and coming to help each other social and economic aspect. The Credit Officer along with the Branch Manager discuss with the Group member to familiarize the concept of group and motivate them to take up small income generating activity etc. Then facilitate them to elect their President and Secretary as per the eligibility criteria. o Introduce the group records and facilitate the President and Secretary to maintain obtain the signature of the members.
C.G.T (Compulsory Group Training): A two days CGT is scheduled for the members of the group. On 1st day, Photo & KYC of Applicant & Co-applicant, Information Details, Bank Passbook. o On 2nd day, the members are given Training on products, T&Cs of company, Financial Literacy.
G.R.T. (Group Recognition Test): o immediately after the completion of CGT, BM/AM will conduct the Group Recognition Test (GRT).If a Group secures at least 75% of the grading marks, it is eligible for a loan-linkage. lf the Group will secure less than75%, the GRT person may recommend for further CGT or may recommend for cancellation of the Group.
Loan Sanction Process and Delivery: o GUFSPL has a centralized process of loan sanction. The Credit Department located at Head Office is responsible for sanctioning of the loans. The process of loan sanction starts after receipt of recommendations on loans from the Area Manager (AM). The AM recommends the loans to credit dept. which are recommended by the Branch Manager (BM) for sanction. The process of sanction done through mobile/Tab App based software and on real time basis.
Executions of post sanction loan documents: Following documents are retrieved from the software for execution of the same once loan of that group is sanctioned by the Credit Dept. The Branch then uploads those executed post sanction loan documents into the software. The AM confirms the same to accounts dept. and ask for disbursal of loan to the groups. lnter-se Agreement individual Loan Agreement Debit Voucher/DP Note Receipt of insurance Premium Money Receipt of LPF and GST individual Loan Card.
Loan Disbursal Process: Presently GUFSPL delivers its products through cashless mode. The account department will initiate the process of loan disbursal through NEFT/RTGS/IMPS transfer once confirmed that all the post sanction documents are executed properly. The Accounts Dept. intimates concerned line managers/ authorities about release of fund on same day or next day. The Branch will give confirmation mail within 2 days of Loan disbursal to accounts dept. with copy to AM, COH and Credit Committee. The IT dept. authenticates the same for entry in the software.
Credit Monitoring: An efficient system is in place to monitor the day-to-day operations carried out at Branch level as well as Head Office level. At Branch level, each Area Manager (AM) is assigned 5-7 branches for supervision of the branch operations and is monitored by the Corporate Operation Head (COH) on daily basis. The Director Operation monitors the work of AMs and COH at weekly intervals for smooth operations of the company. The Director Operation with COH makes surprise visits of the branches in regular intervals to accelerate the branch operations and improve the gaps if any. Every day, the accounts dept. receives the EOD report from all branches and reports the consolidated report including the day Demand Vs Collection report with remarks, if any for immediate follow up by the concerned authority. A monthly Funds Flow statement is prepared at beginning of the month for assisting the management to take strategic decision about funds available for loan disbursement, sourcing of additional fund and timely meeting of lenders’ obligation. The management also takes adequate measures in advance for smoothening financial and operational activities by reviewing monthly Assets & Liability Maturity (ALM). The Company has an Internal Audit department, which consists of an Audit Manager and three Auditors. The Audit Manager reports to the Executive Director periodically on the facts summarized from the reports of the Auditors. Each branch is audited four times in a year. An Auditor or team of auditors is/ are deputed to conduct audit of a branch for period of 3-4 days as per the situation demands. Similarly, at HO level, the internal audit is conducted as and when required by the management.
Loan Repayment Process: On the scheduled demand date, the Credit officer will download the demand of all groups/JLGs of that date in the software by using his/her tab or mobile app. As per the scheduled time and place, he/she will reach the groups/JLGs. Conducts the meeting of the group or JLG and collects the demand amount (Principal +Interest). After collection, the credit officer updates the records of the group/JLG as well as in software along with capturing a photo of the group meeting. Branch Accountant/Branch Manager authenticates the collection in software after collecting the demand amount of that date from the credit officer. At the day end, the Branch Accountant/Branch Manager reports the total collection of the branch against the demand of that day. The Accounts department and IT department at head office will authenticate the collection in software accordingly. In case, the demand of any member of group/JLG is found not collected for a day, the same is instantly reported to the Operation Department for its remedial action.
Loan Documentation and Security: Following documents are retrieved from the software for execution of the same once loan of that group is sanctioned by the Credit Dept. The Branch then uploads those executed post sanction loan documents into the software. The AM confirms the same to accounts dept. and ask for disbursal of loan to the groups. lnter-se Agreement individual Loan Agreement Debit Voucher/DP Note Receipt of insurance Premium Money Receipt of LPF and GST individual Loan Card