1. Publicize Loan Policy
All staff members and branches must use a variety of ways and means to publicize new credit policies.
2. Apply to be a Client
Clients apply for loans at the branches (generally in the field). The cashier (a credit worker for Sanxiang) addresses the client’s questions, explains in detail the credit policy, and understands what the client needs. The cashier also registers the name of the potential customer and the loan variety.
3. Initial Client Inspection
After the client applies, the credit worker guides the client on filling out the application. S/he confirms the client’s basic information (loan variety, amount, usage, type of loan insurance, time, home address, membership, production conditions, etc.) and makes an appointment to visit the client in his/her home.
4. Household Examination
Credit worker follows the designated time to visit the client’s home and understand the following conditions: house, production land, assets, project authenticity, mortgage legality, loan repayment ability, and client’s reputation. Then the credit worker fills out the customer inspection forms or business activity confirmation forms, collects the client’s identification card, and gets a copy of the client’s residence booklet.
5. Examination by Director (Selective Supervision)
Branch directors must individually evaluate each client’s information that the staff members have provided. The directors need to make sure the authenticity of the staff’s investigation. Then they write down their opinions and send the forms to the committee for approval. For Sanxiang, the credit worker evaluates the forms after his/her examination, and the supervisor matches up the application with the data. At times, the supervisor also conducts selective examinations.
6. Loan Evaluation
For the applications that have been verified and are in accordance with the loan requirements, the branch director holds a committee discussion to review them. There needs to be 3 signatures to approve the loan request. If one person does not agree, the application is not approved. Sanxiang staff members evaluate the loan request within their boundaries. The approved applications are given dates to transfer the loans. Every 3-5 days, the director (or supervisor) must collect loan applications that are outside of the branch’s approval rights and report them to the headquarters for evaluation and approval.
7. Loan Notification
According to the time of loan approval, credit workers notify the customer to bring his/her seal and identification card to the office and retrieve the loan.
8. Loan Procedure
Credit worker fills out the contract for the loan, certificate for the customer loan, repayment schedule, customer repayment card, and relevant insurance forms. After the director verifies the credit worker’s and client’s documents, s/he signs the loan certificate they agreed upon.
9. Loan Grant
There are two ways to grant loans: cash loans or transfer account loans. Currently, the Association is experimenting with cash loans but will change the type depending on the conditions. The cashier and director (credit worker for Sanxiang) go together to the bank to retrieve the approved loan amount. After confirming the completion of loan documents and getting the seal ready, they will transfer the loans to the client. After granting a loan, the cashier must immediately construct an account for the client.
10. Loan Retrieval
A. Credit worker fills out the client’s repayment card according to how much cash the client returns. After confirming the repayment and autographing with the seal, the credit worker takes the payment vouchers and cash to the cashier.
B. Cashier checks the filled-out card, ticket, and account from the credit worker for mistakes. Then s/he counts the cash and records the information under the client’s account. The cashier also signs the client’s account and the payment voucher. Afterwards, the cashier returns the certificate for repayment and repayment card to the credit worker, who returns both to the client. Finally, the credit worker reminds the client the remaining balance.
C. Cashier collects the cash and ensures the accuracy of the amounts with the accounts, fills out the bank’s bill, and deposits the money in the bank that day.
D. After finishing the business for the day, the cashier immediately records into the daily cash journal and the banking booklet.
a. After recording, the cashier asks the accountant for a transfer certificate. Both sign after another verification.
b. Sanxiang collects the certificates and fill in the amounts of cash given out and loans recovered that day. These documents are then given to the supervisor, who reviews them with the county’s financial account. Both parties then sign the document.
E. Accountant retrieves all the documents from the cashier and records the relevant accounts after verification.
F. Branch director (or supervisor) checks the financial business that day. If there are any missing recoveries, arrears, or late payments, s/he immediately holds discussions to find solutions.
G. Branch director (Sanxiang credit worker) fills out the work and loan grant schedule for the next three days. These either gets faxed or brought back to the headquarters and given to designated workers. Both parties sign after verification.
a. Entry workers from ARDY’s headquarters sign the documents after receiving them through fax or in person. By noon the next day, they must enter all the financial information.
b. Once the Association’s accountant receives the receipts from Sanxiang, s/he will complete the confirmation and register relevant accounts.
11. Clients’ Credit Collection and Organization
After the financial business that day, the credit worker follows the Association’s Credit Management System to collect and organize the clients’ files. S/he sequentially numbers the files depending on the clients’ villages and community groups. Every month, the credit worker transfers the files to the cashier for safe-keeping and unified management.
12. Preparation for Next Day’s Work
Director (Credit worker in Sanxiang) sorts the agenda for the next day and makes all necessary preparations.