MARI

AM LIFE LENDING INC.

ANNEX B-2

STAGE 1:

the Program Account Officers will be sent to a target specific area to saturate the
area and conduct the following task.

- To check the number of house hold in the area.

- To check if the area is accessible and passable even during rainy days.
- To check if there does bank exist near at the area.
- To check the operational status of existing businesses and micro finance
company in the area.
- To check the possible target clients including the type of their livelihood.
- To check if the area is free from violence and it is peaceful.
- To check if the area is not scheduled for demolitions.

Gather contact persons, their names, address and their contact numbers. Follow
ups after that will follow to ask the contact person if they/she already have a group
ready for CI.

STAGE 2:
ASSIGNING Contact person and referrals ( Center Officer )
Is a chosen target client in the area that will recruit loan applicant and form a center
or gather and look for possible loan applicants in the area. She is known to be a
group leader in other MFI’s, mostly a center treasurer or a center president. During
the area survey, the PAO already made a pre orientation one on one with the contact
person citing the loan policies and benefits; this will be discussed by the contact
person during recruitment of possible center members in the place.

After gathering more or less 10 to 15 loan applicants, the contact person will now
contact the Program Account Officer to conduct the credit investigation (CI) followed
by Background Investigation (BI). Minimum 10 Clients to start a center.

STAGE 3:
Credit Investigation

Is one of the most important part of loan processing. It is one of the most effective
means of client’s selection. Through credit investigation, we can avoid many things
that cause delinquency. The PAO should be cautious, articulate, and very keen to
every detail during investigation to avoid the following
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AM LIFE LENDING INC.

- Fly by night borrowers
- Hit and run borrowers
- Professional borrowers
- Loan Accommodations
- etc.

After conducting CI, the program account officer will now conduct background
investigation (BI).

Background Investigation

Is made promptly after credit investigation to secure more information about the loan
applicant. One way is to ask the clients neighbors. The PAO can now measure if the
loan applicant is telling the truth during CI or if there is anything that she is hiding
about her by asking the neighbors about her credit performance during the past
affiliation or her character with in the place.
All the loan applicants who passed the CI/BI will now be submitted for Validation.

After conducting the CI/BI, the PAO will now inform the Supervisor or the BM that
she/he has new centre for validation and she/he will submit the CI/BI forms and other
information.

STAGE 4:
Validation

Is made to measure the accuracy of the program account officers PAO work or if the
PAO performs her/his task faithfully, or she/he truly conducted the CI/ BI and the
loan applicants are truly qualified to avail the loan. Validation is also made to see to it
that the loan applicants meet the following criteria:

Validate the member and the IF the Center Officer follow the process.

- Residing within 1 kilometre radius

- One applicant in one house hold; no more than 1 applicant in the same house
hold will be allowed to join.
- With existing visible business post.
- At least 1 year residing in the place for home owner, and 5 years residing in
the place for renter.
- With relatives in the area.
- With good character.
- 21 to 60 years old in good health for new clients
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AM LIFE LENDING INC.

- with good record from other MFI
- No derogatory records

STAGE 5:
Proper Program Orientation PPO

Is conducted by every PAO before release in 2 to 3 hours in formal set up, it includes
the following topics to be discussed:

- loan policies
- Loan interests, CBU and Incentive
- Insurance
- Upfront/kaliwaan
- Weekly instalments
- Other policies and benefits

The orientation to be conducted by every Program Account Officers should be clear.

All PAO are advised to be prepared before conducting orientation. It should be done
in a center venue wherein no one can intervene and destruct.

All clients should properly seated, focused and interested with the so called “Dagdag
Capital Program” of MARIAM LIFE LENDING INCORPORATED MLLI.

STAGE 6:
Loan release is scheduled 10:00 AM to 4:00 PM every day.

Valid ID is required to bring by the client to facilitate their loan release.