MicroVentures India understands that Microfinance Institutions have the need for efficiency and simplicity when applying for funding. In this regard we follow a clear process while evaluating a potential client, which reduces the turn-around time and allows MFIs to obtain the necessary funds in a short timeframe.
The process is outlined below (click on steps to view details):
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Preliminary Information
For an institution that is interested in obtaining funding, the first step in the process is to provide MicroVentures India with a set of
preliminary operational and financial information. The information required include the following:
- Institutional Presentation
- Board of Directors
- Management
- Shareholding Structure
- Audited Financial Statements for the last 3 years
- Latest available Annual Report
- Provisional Financial Statements
- - Quarterly financial statements for last two years
- - Latest provisional financial statement
- Quarterly operational data for the last three years
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Preliminary Information
For an institution that is interesting in obtaining funding, the first step in the process is to provide MicroVentures India with a set of
preliminary operational and financial information. The information required include the following:
- Institutional Presentation
- Board of Directors
- Management
- Shareholding Structure
- Audited Financial Statements for the last 3 years
- Latest available Annual Report
- Provisional Financial Statements
- - Quarterly financial statements for last two years
- - Latest provisional financial statement
- Audited Financial Statements for the last 3 years
- Last three years operational data
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Desk Analysis
Once the Preliminary Analysis Information is provided to MicroVentures India, a basic examination of the institution is performed. If the institution meets the
general profile of our clients and MicroVentures feels that a long-term relationship can be initiated at this time, the MicroVentures team will perform a more
detailed study of the institution which requires additional information.
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Institutional Assessment Visit
Having completed the Desk Analysis of the Microfinance Institution, MicroVentures India undertakes a visit to the potential partner. During the institutional
visit, the primary objective is to establish a rapport between MicroVentures and the Microfinance Institution and to help build the foundation for a long term
relationship. In this regard, MicroVentures looks to get a clear understanding of how the institution performs its daily tasks. This would involve interviews
at various levels in the Head Office of the MFI, as well as visits to the branches. During the visit to branches, the MicroVentures team will need to attend
center meetings and interview clients, as well as field staff of the MFI. This is also a chance for the potential partner to communicate the specifics of the
funding needed and the long term strategic direction of the institution.
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Agreement on the loan terms
Once the MicroVentures team completes the comprehensive analysis, the decision to provide the debt investment is taken by the Investment Committee and the final terms of the loan are agreed with the MFI.
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Reporting
After the loan is disbursed to the MFI, MicroVentures expects the institution to provide updates on the utilization of the loan, as well as on the ongoing performance of the organization. In this regard, there are certain information should be provided by the MFI to MicroVentures. The reporting requirements are not only intended to help the lender monitor the loan, but also to rapidly provide future loans and refinancing options to the MFI should the need arise.
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Reporting
After the loan is disbursed, MicroVentures expects the institution to provide updates on the utilization of the loan, as well as on ist financial and operational performances. The reporting requirements are not only intended to help the lender monitor the loan, but also to rapidly provide future loans and refinancing
options to the MFI.
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