Credit lending system for Microfinance companies

micro finance application casestudy

Source: Visiontek

Microfinance companies are reaching to the remote areas of countries where banks could not to uplift poor people. The success of micro-finance companies depends on the model of self help groups as well as transparency in all transactions.

Many MF companies carry out their cash collection in remote areas using paper-based processes by micro-finance agents who maintain cash collection records in registers with customer thumb impression. These records are then manually entered at central location. This manual process has implications like no real time update of data on central servers, manual data entry of transaction s prone to errors and data loss, also manipulations & frauds by agents.

To aid micro-finance companies maintain transparency in all its operations, Dusane Infotech has developed handheld credit lending system. As customers of a micro-finance company are poor, located in remote areas and pay money in small amounts & mode of cash, this handheld device is very useful to micro-finance agents who are given tedious but critical task of cash collection. These handheld devices not only act as spot billing machines but also are point of sale for complete payment collection infrastructure setup by the micro-finance Company.

When micro-finance agent reaches to his customers to collect installments, agent enters the payment details in handheld credit lending system and customers are given on the spot receipts. Agent takes bio-metric thumb impression on handheld device itself which is saved along with payment record. These receipts are proofs with customers for the money they have paid. Payment details of all such money collected are stored on handheld devices local storage system and downloaded to central location where agent also deposits all money or transferred via internet in real time. Highly secure credit lending system and electronic capture of all payment data ensures transparent operations and no frauds. Also reports generated from handheld devices in detailed accounting, fund channelizing and better decision making by micro-finance management. These handheld POS terminal can also be used to issue new micro loans to individuals where individual profile management, issuance of new loan and approvals are managed online via these handheld POS terminals.

Thus credit lending systems help micro-finance companies to keep control over cash collection service, streamlines head office operations and field procedures that ensure faster payment collection and new loan issuance. Going paperless also saves money, time and improves productivity which in turn improves customer’s trust on micro-finance company.

The handheld credit lending system can be custom-made as per micro-finance to capture on-site data and update the central servers directly through the Internet. These handheld credit lending devices can also be used by NBFCs, small sector banks, micro insurance companies which work on model of collecting big funds from small contributions for the benefits of poor.

To know more about features and technical specification of handheld cash collection system email us at solutions@dusaneinfotech.com or contact us.