SAADHANA

Group
Aditi 01
Navjot 20
Rishabh 29
Sadanand 33
Yogesh
39
Achal 47
 Introduction
SAADHANA is a non- profit organization established
in the year 2001 to reach out to the urban and rural
poor women with the specific mandate to catalyze the
‘Endeavor of the Poor for Self-Sufficiency’.

SAADHANA from its humble beginning in 2001 has

now reached out to more than 20,000 poor women
within a short span of four years scaling up its
operations to surrounding towns with innovative
partnerships.
Saadhana Microfin Society (Saadhana) disburses
micro loans with tenures of up to 50 weeks, at an
interest rate of 15 per cent per annum on a flat basis, to
women's joint liability groups (JLGs) in urban and
semi-urban areas.

Saadhana also offers group life insurance schemes to

its borrowers through tie-ups with an insurance
company.
Governance
 The Executive Board Members

Name Designation

Mr.G.Dashrath Reddy President

Mrs.K. Madhavi Vice-President

Mr.M.Ernest Paul Secretary

Mr.S.Vijaya Bhasker Treasurer

Mr.B.Sesha Reddy Executive Member

Dr.K.Raja Sekhar Executive Member

Mrs.V.Indira Jayashree Executive Member

Founder secretary & CEO

Mr. Ernest Paul

Mr. Ernest Paul, with close to a decade and half
experience in the domain of micro finance
Set out operations in the urban slums of Kurnool
District, A.P. on 12th December 2001 using a fast
track model – drawn upon the positive features of
'Grameen' methodology.
 Vision
Emerge as highly qualitative, financially viable and
self-sustainable service rendering micro finance
institution for women in Andhra Pradesh.
Mission
The Mission of SAADHANA is to Provide
Continuous Qualitative Financial Services to the poor
women in urban and rural Areas of Andhra Pradesh by
establishing a Self Sustainable Financial Institution
with an objective of improving the Income Levels of
the Clientele to attain Sustainable livelihoods and
better quality of life.
Objectives
Rendering Continuous and Qualitative Financial
Services to the poor women
Improving the Quality of life of Clientele
Nurturing needy and upcoming MFIs
Core Values
Open to Learn and Share
Performing Better than the Best
Integrity
Self – Reliance
Team Spirit
 Organizational Structure
 CEO SECT: CEO'S Secretariat
 CMT: Client Management Team
 I MAT: Internal Management Team
 FMT: Finance Management Team
 IAT: Internal Audit Team
 DST: Development Support Team
 HRMT: H R Management Team
 TMT: Technical Management Team
 ADMT: Admin Management Team
 AMT: Accounts Management Team
 Trngs & Doc: Trainings &
Documentation
 SRC: Swajeeva Resource Center
Operational Structure
UNIT STRUCTURE
CONTROL ENVIRONMENT
Since inception, Saadhana believes that internal
controls play a pivotal role in achieving the objectives
of an organization and designing these systems has
become a critical management function.
Saadhana has highly committed and competent human
resource of the organization with strong ethical base
created a control environment in the organization.
Operations-Comprehensive Operational Manual
Human resources - HR Manual
Financial management & Accounting policies -
Financial Manual
Business development - Strategic Business Plan
Portfolio Control
PRE-DISBURSEMENT
i. Client appraisal
ii. Eligibility check

Pre-Project appraisal
i. Zero tolerance policy
ii. Project verification/Loan utilization checks
SAADHANA's focus of interaction
Clients awareness
Clients knowledge
Clients understanding
Data corroboration with co-guarantor
Analyzing existing debt obligations
Loan purpose
Solidarity
Leadership and Participation
Multiple membership
DELINQUENCY
MANAGEMENT
SAADHANA believes that delinquency management is a
concurrent prerequisite process that begins with the
selection of clients itself. Therefore, our systems are
designed in a manner to reduce the scope for
delinquency.
1. Screening of clients
2. Check on dual/ Multiple Membership
3. Check on dual/ Multiple Membership
Saadhana has achieved 100% repayment from clients.
Never had it faced the problem of non-Payment of
installments from clients.
Management Information Systems (MIS)
SAADHANA being a full-blown institution
introduced professionally designed computerized
Management Information System (MIS) to deal with
the myriad financial transactions related to loans that
multiply every year due to constant and fast expansion

Information Flow at SAADHANA

 Main Reports Generated by the MIS

REPORT GENERATED BY GENERATED FOR FREQUENCY

Demand & Collection 

chart - Client wise

Consolidated CO Auto generated CO-to keep track of collections that are due to collect from clients Daily
Disbursement plan Auto generated FM-to make provisions Monthly

Expected demand Auto generated UM- to cross check with consolidated DC Weekly

Staff moment& demand OM OM-for monitoring purpose Weekly

Weekly up-dates UM FM-for progress report Weekly
Dropouts report Auto generated OM-for monitoring Weekly
Advance refund IUM AM- for accounts purpose Weekly

Daily Financial statement(DFS) FA AM & FM-to tally with cash & Bank balance Daily

Social Security Scheme(SSS) IO LIC & Internal purpose Weekly

HR report HRM HO-for internal reporting Monthly

Financial statements AM Accounts & FM- for cross verification with FIMO generated FS Monthly
Financial statements Auto- generated HO- for planning and monitoring Daily
Portfolio report Auto- generated HO- for monitoring Daily

Progress report Auto- generated HO- for monitoring Weekly & monthly
IT Systems for MIS
FIMO – PACKAGE 
SAADHANA has deployed an innovative software
package; called FINANCIAL INFORMATION AND
MONITORING ORGANISER (FIMO) developed by
the JAYAM Solutions (P) Limited, Hyderabad in the
year 2002 to cater the management information needs
and to adequately track basic client information and
portfolio quality. The package allows the users to view
a variety of reports at any point of time. The analytical
functions of the package allow the viewer to financial
and operational performance over time.
 Outreach Summary
Apr '06 to Mar-
PARTICULARS Apr '05 to Mar- 06' 07' Apr '07 to mar-08' Apr 08 to Mar-09'

Number of Centers 1643 2196 2670 3451

Number of Units 15 20 21 40

Number of Members 41,700 60,440 76,580 103,430

Number of Groups 3,961 5,452 6,386 1896

Number of Active Clients 39,374 54,250 63,629 85,102

Number of Active Loans 38,263 55,569 62,729 84,908

Total Number of Loans 61,944 119,843 184,433 272,413

Value of loans (Rs) 396,237,650 932,262,050 1,663,300,281 2,669,703,292

Gross Loan Outstanding

(Rs)    164,486,100 300,716,702 359,923,143 540,294,471
 Financial Summary
PARTICULARS Apr '05 to Mar '06 Apr '06 to Mar' 07 Apr '07 to Mar' 08 Apr '08 to  Mar'09

Number of Clients 39,374 54,250 63,629 85,102

Number of Active Loans 38,263 55,569 62,729 84,908

Loan Outstanding 164,486,100 300,716,702 359,923,143 540,294,471

Net Worth (Adjusted) 7,605.76 30,372,639 50,013,946 73,264,536

Total Income 28,336,613 67,990,180 89,441,570 128,906,386

Operational Efficiency 25.31 21.33 22 23.76

Administrative Efficiency 15.6 11.49 11.05 11.21

Portfolio at Risk(>30 Days) 0.00% 0.00% 0.00% 0.00%

Portfolio at Risk(>90 Days) 0.00% 0.00% 0.00% 0.00%

Operational Self-Sufficiency 107.05 138.39 124.31 121.73

Financial Self-Sufficiency 100.94 115.85 110.1 116.99

FUNDERS
Total Funds Total Outstanding Total
FUNDERS Borrowed Repayment No. of Loans

359,000,000 234,000,016 124,999,984 61

150,000,000 87,759,100 62,240,900 10

179,000,000 98,547,618 80,452,382 16

270,000,000 180,000,000 90,000,000 19

320,000,000 190,000,000 130,000,000 20

50,000,000 50,000,000 1

50,000,000 3,125,000 46,875,000 2

1,378,000,000 793,431,734 584,568,266

 Products & Services
GENERAL LOAN

CHARGES FEATURES TARGET CLIENTS DELIVERY MODE

I cycle  ranges from 7000-

9000 with an increase of 2000
for every subsequent cycle
15% pa flat Term - 50 Weeks All borrowers with ceiling amount of 21,000

 One time disbursement to the

Documentation-Rs.20/- Weekly Installments   entire group (10 members)

LoanProtection Fee (LPF): Size of the loan vary

2% Upfront Up to 3rdCycle by cycle Collateral-
& 1% from 4th onwards Group guarantee    
  MICRO ENTERPRISE
DEVELOPMENTLOAN [MEDL]

CHARGES FEATURES TARGET CLIENTS DELIVERY MODE

Existing borrowers The loan ranges from

who have completed 25,000 -50,000 vary with
15% pa flat Term - 50 Weeks two loan cycles. the enterprise

Documentation-
Rs.20/- Weekly Installments    

LoanProtection Fee
(LPF): 1% Size of the loan vary by cycle    

  Collateral-Group guarantee    
 SOCIAL SECURITY
SCHEME(SSS)

CHARGES FEATURES TARGET CLIENTS

Social security scheme SSS is an Insurance product designed to

Total premium-Rs.125/- mitigate the risk & protect the welfare of the borrower All borrowers
Premium-Rs.100/- Compulsory for all active borrowers  

Rs.25/- to cover funeral

expenses of the client & spouse Insured Risk - life of the spouse  
Risk coverage                   -Natural Death-
Rs.30,000/                     Accidental Death-Rs.75,000/-Permanent
total Disability-Rs.75,000/-Partial permanent
disability                  Rs.37,500/-     Apart from the above, the
immediate compensation of Rs.1000/- for the spouse & Rs.500/-
for the client is offered by Saadhana towards funeral expenses.

   
METHODOLOGY
7 PHASES followed are :
Identification of potential Area/Slum
Conducting preliminary survey
General meeting
Identification of preliminary group
Group training
Verification
Initiating Financial Transactions
IDENTIFICATION OF POTENTIAL
AREA

The criteria for adopting an area are:

Magnitude of poverty
Size of the slum
Physical access (max. 8 km)
 CONDUCTING PRELIMINARY
SURVEY

The survey done for the following :

 Ensures potentiality of the area.
Opportunities to take up potential livelihoods
The area should have maximum scope for outreach .
Get an idea about the variety of financial services
available in the area.
The different types of other MFIs operating in the area.
The charges offered by the other MFIs.
GENERAL MEETING
IDENTIFICATION OF
PRELIMINARY GROUP
The criteria for the preliminary group are:
 Economically active poor women in the age group of
20-50 yrs.
 Individual income< Rs.1500/ & family income <
Rs.2500/.
 She should be the resident of that particular Slum for
at least one preceding year
 Not owning a big house
 Willing to abide by the credit Policy of SAADHANA
 Willing to be a co-guarantor for other women in the
group.
 Neither the woman nor her husband are Govt. employees
except like Scavengers, Sweepers, Watchman, etc.,
 No two members in a group should have blood relation
 All the members should reside in the same street .

Eligible members will form into groups (10 members

per group) with leaders
GROUP TRAINING
A five day training program is conducted.
1st day-Organization Profile
2nd day-Five norms of SAADHANA
3rd day-Credit Policy
4th day-Over all review & Preparation for verification
5th day- Group verification
VERIFICATION

Groups not succeeded in the

verification test will again undergo
training
INITIATING FINANCIAL
TRANSACTIONS

The financing is done in the Center meeting .

I –Center Meeting- Issue of enrollment & weekly
repayment cards, Issue of loan application and
resolution forms.
II –Center Meeting- Loan disbursement
Follow up through weekly meetings.
Strengths
  MISSION
 SMART Objectives
 Vibrant Strategic Business Plan
 Professional leadership 
 PAR is 0% (100% repayment since beginning)
 Process and Policy Documentation through Process Mapping 
 Achievements
 Diverse funding base
 Strong moral and financial back up of FWWB
 Unvarying Commitment to Social Agenda
Future Plans
Transforming From Society to NBFC

Preparing for ISO Certification


*Ratios are annualised
Operational Highlights
CRISIL's analysis on key parameters
 Saadhana has a good asset quality, which is reflected in 100
per cent of its portfolio being current (collections on time)
as on September 30,2008
 The addition of 15 new branches during the first half of
2008-09 has resulted in increase in operating expense
levels and, as a result, the operational self sufficiency
(OSS) ratio declined to 118.14 per cent from 124 per cent
during 2007-08. However, given the MFI's high branch
and employee productivity levels in the past, CRISIL
believes that the operating expense levels would decline
resulting in improvement in the OSS over the medium
term.
CRISIL's analysis on key parameters
Saadhana's - Net worth of Rs.59 million
High debt-to-net worth of 8.64 times as on
September 30, 2008.
In order to funds its growing asset size, Saadhana will
need to raise capital: the MFI's current legal structure
as a society impedes its capital-raising ability. Hence,
Saadhana intends to transfer its microfinance
programme to the newly-acquired NBFC by the end of
2009: the legal structure of an NBFC will enable the
MFI to raise equity.
Success Stories
“I was almost lifeless; Saadhana has uplifted
me from the miserable condition and made
my life livable”

Client Name: Thahera

Begum
Unit: Osmania Group
Project: Petty Shop
Loan
 Amount:15000
client for last 4 years
1st loan amount of Rs.6000/- she started a petty shop on
rent by selling detergent .
2nd & 3rd loan amount to expand her business.
4th loan amount of Rs.15, 000/- to buy bottle cooling
machine to sell cool water packets.
Appropriate use of festival season.
minimum profit is Rs.5000/ per month.
“Saadhana helped us a lot. Because of
Saadhana we improved our lives”.

Client Name:
Masoombee
Unit: I-town Group
Project: Vending milk
Loan Amount:50000.
earlier had 4 buffaloes.
Now she had 15 buffaloes in the cattle yielding 45 to 50
liters of milk per day.
On an average her monthly income is Rs.6000/-.
.With the lucrative profits and savings she performed
elder daughter’s marriage with enough pomp and show.
 “As women are vulnerable should be
supported. Saadhana is really doing it and
created hopes to grow us step by step.”
Client Name: Khairunnisa
Rasool
Project: Selling Fire Wood
Loan Amount:30,000.
Earlier she used to do the Beedi making.
She gets the material from Kharkhana (Industry) on a
condition to prepare at least 150 bundles of 10 Beedies in
each bundle to get Rs.30/- to Rs.40/- only.
Got awareness of consequences of Beedi making at
home .
Then invested the loan amount on selling firewood.
 Monthly her minimum profit is around Rs.1000/-.
With a positive ripple effect Khairunnisa motivated her
relatives of neighborhood localities got enrolled into
saadhana.
AWARDS
 Winner of Micro Process excellence award in
fire category MPEA-2005,MPEA-2006, MPEA-2008

 Winner of special Award for continued excellence in

process management MPEA 2006.

 Winning of "MICRO INSURANCE AWARD -

SHIMMER , 2007“
Saadhana ranked 15th best MFI by
Forbes Magazine Data by The Mix, M-CRIL and MICRO RATE.

 
THANKYOU