Prosperous Capital & Credit Limited have adopted the Grameen and Asa frameworks by incorporating aspects of both these models into one cohesive, solid framework that’s applicable to Sri Lanka. By uniquely integrating and combining the best of both worlds, Prosperous have conceived a novel concept that’s both original and relevant to the country.
The Management revolutionized this framework further by selecting demographics and areas that have not been reached or catered to with Microfinance opportunities.
It is the Company’s prerogative to fully grasp and truly understand people from a variety of walks of life, their lifestyles, behavioral patterns, culture and ways of life prior to organizing and introducing loaning mechanisms and microcredit schemes. By empowering women with a knack for entrepreneurship enables families to improve their business prospects while generating a consistent flow of income.
Another novel concept to Sri Lanka which has proven to be successful was to instigate Female Development Officers when facilitating loans so that women borrowers can relate and connect with the people offering them a tailored service. This helps develop a close rapport with the borrower while earning their trust in the process, which guarantees loyalty and a lasting relationship between both parties.
Identification of customer needs – we carry out a socioeconomic survey in our target areas and identify those who are somewhat financially independent, and have less loans. We organize a meeting with these individuals and brief them on our programme and if they wish to participate, we hold another meeting with them in a week’s time, sharing details of the loaning process. We set them up as a women’s investment society with at least 20 members (based on the ‘grameen’ model and Asa framework. They appoint a president and split into five groups of four. Each group has a leader who is responsible for ensuring group members repay their loan according to the commitment made.
Loan eligibility – we assess client’s eligibility by checking their repayment capacity based on factors such as their total monthly income, house rent (if any), and other expenses such as food, school fees, transport, amenities, and health. We also analyse where they stand on the poverty index scale. We also collect their social and economic information to provide them support in these areas. This accords with our compliance with the universal standards for Social Performance Management.
Before providing a second loan, we check if they have moved up the poverty scale as a result of the first loan.