Sanchetna Financial Services

Mission:

We provide client-focused, highly responsive and cost effective financial services and business development expertise in a time bound and socially conscious manner to increase the productive capacity of the Indian poor

Background and Main Challenges:

Sanchetna was started by a group of enthusiastic and passionate professionals having background in financial services as well as retail industry. Sanchetna has been focussing on areas which are still not that well penetrated into.

Address:

5/82 Vipul Khand,Gomtinagar

Lucknow

Uttar Pradesh

226010

India

Phone:

+91-522-4076350

Email:

lokesh [dot] singh [at] sanchetna [dot] com

Website:

www.sanchetnaindia.com

Main Funding Sources:

Loans

Shareholder Capital

Products and Services:

Loans

Insurance

Training and Consulting

Financial Services

Services Provided:

Full-scale Financial Services

Business Development Services

Looking for (Investment Types):

Equity

Loans in Local Currency

Donations

Guarantees

% Operations Comprised by MF:

81-90

Date established:

Nov 3 2008

FYE:

31-Mar

Current Legal Status:

NBFI

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
+ Development goals (ranked by importance)
Youth opportunities	1
Increased access to financial services	1
Growth of existing businesses	1
Employment generation	1
Health improvement	2
Housing	2
Poverty reduction	2
Development of start-up enterprises	2
Water and sanitation	2
Improvement of adult education	3
Children's schooling	3
+ Poverty targets
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
Has a formal board committee that monitors social performance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
Loans for agriculture
+ Savings products offered
+ Compulsory insurance products required
Compulsory credit life insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
Business development services
+ Education services offered
Financial literacy education
+ Health services offered
+ Women's empowerment services offered
Leadership training for women
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Declining balance interest method
+ Social responsibility to staff
+ Human resources
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Quality of interaction with clients based on client feedback mechanisms
Portfolio quality
+ Social responsibility to the environment
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
+ Poverty measurement tools in use
Housing index