iSHRAQ*Microfinance module enables financial institutions to run the mass retail services that comprise microfinance and community banking at lower cost.
The system delivers high security, efficiency, resilience and cost savings for financial institutions assisting them to develop loan programs to finance projects, training and education.
iSHRAQ*Microfinance Loan Programs Business Features:
– No collaterals, guarantors, or bank accounts
– No penalties for late payments
– Loan full or partial dropping in case of customer death or inability to repay
– Grouping concept to mitigate collection risk (Takaful concept)
– Customer performance tracking for further loan programs.
iSHRAQ*Microfinance Loan Programs Typical Financing Cycle:
• Program announcement and applicant registration
• Applicant visit and application filling
• Primary approval
• Encouragement meetings
• Commitment proofing fee payment
• Attendance of induction course and collection of attendance fee per session
• Collection of required application documents, agreement on loan amount and repayment tenure
• Final Approval
• Insurance company agreement
• Group forming, leader selection, and announcing of the periodical meeting date / location
• Loan disbursement
• Periodical meetings for collection of loan and insurance amounts
• Periodical visits to follow up on loan usage
• Commitment & payment schedule
• Compliance with loan usage that allows the customer to:
– Apply to other loan programs before or after current loan maturity
– Apply to the same loan program after its maturity with greater amounts
• Maintenance transaction for the booked loans:
– Loan rescheduling request, study, and approval
– Early settlement and rebate amounts
– Loan dropping request, study, and approval
– Arbitration closures.