Our Microfinance Method

No Collateral

We deliver our service without collateral, for grass roots’ people who need financial service.

Repayment

We provide weekly, biweekly and monthly repayment system which suppresses each time repayment amounts smaller. In case for clients who were not possible to attend collection meeting, we are flexible to arrange unique repayment method for each case.

Loan Cap

We do not offer excessive amount of loan to clients. The service is designed for clients to get familiar with Microfinance step by step, with the amount suit to clients’ life standard. Amount of loan determined by capacity of group members.

Effective Interest

Effective interest rate is 28% per year. Effective interest rate is 2.33% per month.

Loan policy

Gender Restriction

We offer loans males and mainly females because females take more serious about family budget. We aim that microfinance will contribute to local society through the family budget by females.

Purpose of Loan

Our loan products aim to enhance family business, education, medical and healthcare. We listen to our clients, find primal demand, and set into our products. The loan is intended to be used by proposed business by members.

Age Restriction

We offer loans age between 18-60, healthy individuals who can conduct business.

Steps before the loan

We offer training to our clients before offering the loan; all the clients must join the training, which aims to learn “how to deal with money.” Through the training, the clients can get rid of any concern or anxiety, and come to understand that the microfinance is easy to understand, and can support building their future.

Explaining about MJI, microfinance, loan system, rules and others.

Explain about MJI, group lending process and repayment. Explain about Microfinance Rules & Regulation. Checking Household List.
Checking member’s qualifications to become member of MJI.

[ Group forming ]
Resolve if there is any conflict in group forming.

1. Training (Day-1)
Introducing MJI and explaining center formation, also the knowledge about MJI Enterprise Co.,Ltd.

2. Training (Day-2)
Explaining about the responsitility of member, and Group Leader. Election of Group Leader, Secretary, Center Chief & Associate Center Chief.

3. Training (Day-3)
Explain about the responsibility of Center Chief and associate Center Chief.

3. Training (Day-4)
Group Recognition.

Filling up Base line data into the System in the respective group member’s house on 2nd or 3rd day of continuous group training.

After recognition by authorized (training day 4), Loan Officers can receive the Loan Proposal from the Center Chief, according to the rules and regulations.

Loan Contract is done after registration in System and before one week disbursement.

Branch Manager approve and sign loan amount and request approval from Operation Manager.

Disbursing for 2 members in 1st week, and 3 members in 2nd week. System of loan delivery within the group is 2:3.

Safety and Due diligence

Confirming residential record with local government We do not offer service to whom we cannot confirm 18 months over residential record from local government.
Prohibit of duplicated loans by family member We strictly limit the loan to offer one member only per household. There is risk that duplicated loans by multiple family members may cause the family falls into financial difficulty.
Checking Household and Business Data We visit all clients’ household to check their household data, to make sure that their financial status is eligible to take loan service.
Checking Use of the Loan We check all clients the purpose of the loan. After offering the loan, we check loan utilization regularly that if the loan is used for applied purpose.
Joint Guaranty and Personal Loan We form group of joint guarantor by the clients. This system assure the safety. The group members not only share responsibility but also keep up motivation each other to improve their business. For clients whom with good repayment history and business growth potential, we set Other Loan. We maintain guaranteed amount well-balanced among clients, and safety of recollection.