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https://issues.apache.org/jira/browse/FINERACT-603?page=com.atlassian.jira.plugin.system.issuetabpanels:comment-tabpanel&focusedCommentId=17099364#comment-17099364
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Francis Guchie commented on FINERACT-603:
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Use Case for GLIM – GSIM
• Actors
SACCOs, FSAs, VSLAs, MFIs.
It is common in East Africa and part of west Africa for Financial Service
Providers to prerequisite their clients who cannot afford collateral to group
them selves in order to be viable for credit facilities
• Stakeholders
IDT Labs supporting ACTB savings & Loans, LAPO Micro Finance and Advance Smart
Micro Finance
• Primary Actors
ACTB Savings & Loans, Advance Uganda
• Preconditions
These MFIs give out loans to groups. Minimum number of members is 3 and maximum
is about 50 members. These groups have a leadership structure. They agree to
take a group loan with the following conditions
• The group loan has a number the all refer to (Loan number and loan
Cycle)
• All eligible members are granted the loan
• At group level, the loan holds a unique number
• They co-guarantee each other (cohesion) in the sense that if any member
does not complete payment, they won’t get another loan
• No member is allowed to leave the group unless all members have
completed their loan
• Each member must have a minimum savings balance as set by the loan
product conditions of guarantee
• Once a loan cycle is completed (all members paid) a new member can join
and a tired member can leave and take their savings
• The new member can either follow loan brackets or flexibly start at the
current level
• The amount for each member is determined by the loan officer in charge
of the group
• The group would like to know their outstanding balance as a group
• The group would like to know how each member is performing individually
• Triggers
This method of loan disbursement is good for poor communities that are
struggling with collateral, grouping them gives them the strength to access
credit from the lenders. Yet at the same time, they want to encourage
individual performance thus the need to track each member’s performance
• Main success scenarios
Actb Savings & Loans has been using this lending methodology since 2008 and now
they have more than 10,000 clients in groups
• Basic flow
The Loan officer goes to the field, during client mobilization, encourages
clients to form groups they can manage on their own. Elect leaders that become
contact points for all the group for savings mobilization, loan disbursements
and loan recoveries
• System flow
For the mifos Users, the system must require the following
1. This must be a group loan so the application icon is on the group window
2. The group should have a GSIM account – Group Savings with Individual
Monitoring account. Each member must have a savings balance on their GSIM
account that corresponds to the percentage set for loan product in question
3. During application, user should see the list of all members in this
group
4. Before submission, the user must select a GSIM account that includes
all the selected members
5. By selecting the users, all selected members taking the loan show have
the same loan parameters apart from the loan amount and loan purpose
6. At submission of GLIM application, it should be like a bulk loan
application to avoid repeated entries
> GSIM and GLIM support
> ---------------------
>
> Key: FINERACT-603
> URL: https://issues.apache.org/jira/browse/FINERACT-603
> Project: Apache Fineract
> Issue Type: New Feature
> Components: Loan, Savings
> Affects Versions: 1.1.0
> Reporter: Ed Cable
> Assignee: Rahul Pawar
> Priority: Major
> Labels: gsoc, p1
> Fix For: 1.4.0
>
>
> Support for Group Loans with Individual Monitoring and Group Savings with
> Individual Monitoring added by Nikhil Pawar with use cases and support from
> iDT Labs.
>
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