There are several insightful snippets related to banking/lending industry in this old research report on Ujjivan Financial Services / Ujjivan Small Finance Bank
Example:
A variety of factors make JLG a superior Microfinance model to SHG
Firstly, in the SHG model, a group of about 20 members are required to
accumulate savings for a period of 6 months before taking a loan is
considered. This is step that consumes time and resources and makes the
process unattractive from a borrower perspective. Secondly, the loan
processing time for SHG as long as 4 months compared with just 1 week for
JLG again making things unattractive from borrower perspective. Thirdly,
the repayment frequency is monthly for SHG compared with weekly for JLG
making asset quality control more difficult for the former compared with the
latter, ceteris paribus. Decision making regarding loan quantum to all
members rests with the group leader, which is not something that would be
appreciated by the rest of the borrowers. Last but not the least, there is a
lack of robust information database in the case of SHGs in comparison to
the JLG lenders, who have access to Credit Bureau databases which
makes credit appraisal more challelnging for the former compared with the
latter
Attached report here so that it remains accessible even if link stops working.
Ujjivan Financial Services Nuvama Wealth research report.pdf (667.9 KB)