UMM SGH Delivery Methodology
UMM provides financial services to Self-Help Groups (SHGs) of 10-12 women in each group who meet monthly on a fixed date. UMM provides loans to the member only after approval from her group and conducting due diligence on the member's credit history. It is the group's responsibility to ensure timely repayment.
SAVINGS: Savings is an important component of microfinance. The SHGs operating under the aegis of UMM are always encouraged to incorporate the 'saving habit' in their group for which their saving bank accounts are opened in the nearest branch of Bank. During an SHG's monthly meeting, each member contributes a pre-decided amount as the member's saving, the collective of which forms the group's saving. Over a period of time, this savings forms the corpus for inter-loaning within group members. UMM provides credit facilities to those groups whose members have a regular saving.
CREDIT: Through the use of the collective responsibility and peer pressure, our clients, who often do not have any collateral, are able to access credit. Delivering financial services through groups also brings multiple benefits to UMM: reduction of transaction costs, increase in outreach, and thereby an increase in income. As members take primary responsibility in screening, loan disbursement, loan utilization monitoring, collection of repayments and enforcement in case of defaults, their skills in the same are enhanced by conducting capacity building trainings.
INSURANCE: UMM offer insurance services to all its clients through collaboration with Public and Private Insurance companies for Group and individual Life Insurance Policies.