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1.
Organizing Paperwork
In this chapter
we will present a simple system for maintaining credit records.
You will learn to organize forms into files and see which forms
are used at each step of the process In the previous chapter,
you learned about two forms:
- the
Application
- the Promissory
Note
Once they are
completed and signed, these two forms must be gathered together
and stored in two separate files.
- the
Group File
The Field Agent should keep the Group File in a three-ring notebook.
Use a section divider for each group. Place applications in
the notebook divided by group and filed alphabetically by borrower.
The portability of the notebook is a plus since it can be passed
to the Loan Manager for reviews or carried to group meetings.
- the
Promissory Note File
Signed Promissory Notes are kept by the Loan Manager in
the Promissory Note File. Arrange
the file by group and alphabetically by borrower. Promissory
Notes are legally binding documents. They should be stored in
a locked, metal, fireproof container or cabinet. Once a Promissory
Note is fully repaid, it is stamped and returned to the borrower.
These are
the most important source documents upon which your entire financial
management of loans will be based.
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2.
Organizing the Ledger
The Ledger
records information on each and every borrower of the project-past
or present. The Ledger is organized by group and alphabetically
by borrower. The Loan Manager is responsible for maintaining the
timeliness and accuracy of the Ledger. The first time a new borrower
is approved for a loan, the Loan Manager will begin a page in
the Ledger for that borrower.
The Ledger
contains three parts:
- Part
1-Borrower Profile
A profile of each borrower will be included in the Ledger.
This will be completed from information contained in the application.
- Part
2 - Summary of Loans
Whenever a Promissory Note is signed, the Loan Manager will
enter a summary of the loan in Part 2 of the Ledger
- Part
3 - Record of Payments
As payments are collected and payment information is transferred
from the field, the Loan Manager will enter it into Part 3 of
the Ledger. The next chapter will explain how information is
gathered and transferred from the field.
Other staff members
will refer to these documents and should alert the Loan Manager
to any posting errors. Everyone should agree to respect the orderliness
of the Ledger Documents and this file should never leave the office.
A completed
Ledger page is presented below using a borrower who has completed
four six-month loans.
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3.
Sample Ledger
Part
1 - Borrower Profile
|
Group |
Rising Star |
Borrower ID |
2-RS-009 |
|
Borrower |
Maylin Ton |
Gender |
Female |
|
|
|
Status |
Widow |
|
Address |
Jasmina Road 16 |
Family Income |
$200 per year |
| |
Mountainside Village |
Source |
Weaving Mats |
| |
Riceland Province |
|
|
Part 2 - Summary of Loans
|
Loan Number |
1 |
2 |
3 |
4 |
|
Purpose |
purchase
material |
purchase
awning |
purchase
cart |
purchase
cart 2 |
|
Date Issued |
01 July 96 |
01 Jan 97 |
01 July 97 |
01 Jan 98 |
|
Principal |
$50.00 |
$100.00 |
$150.00 |
$250.00 |
|
Interest |
$10.00 |
$20.00 |
$30.00 |
$50.00 |
|
Total Loan |
$60.00 |
$120.00 |
$180.00 |
$300.00 |
|
Term |
20 weeks |
20 weeks |
20 weeks |
20 weeks |
Interest Rate
per month (flat) |
4% |
4% |
4% |
4% |
Part
3 - Record of Payments
|
Pay-
ment
|
Date due
|
Total due
|
Date paid
|
Total paid
|
Balance
|
Comments
|
Intls.
|
|
0
|
|
|
|
|
120.00 |
|
|
|
1
|
15-Jan-97
|
12.00 |
15-Jan-97 |
12.00 |
108.00 |
|
|
|
2
|
29-Jan-97
|
12.00 |
29-Jan-97 |
12.00 |
96.00 |
|
|
|
3
|
12-Feb-97
|
12.00 |
15-Feb-97 |
12.00 |
84.00 |
|
|
|
4
|
26-Feb-97
|
12.00 |
26-Feb-97 |
12.00 |
72.00 |
|
|
|
5
|
12-Mar-97
|
12.00 |
12-Mar-97 |
12.00 |
60.00 |
|
|
|
6
|
26-Mar-97
|
12.00 |
29-Mar-97 |
12.00 |
48.00 |
3 days late |
|
|
7
|
9-Apr-97
|
12.00 |
11-Apr-97 |
12.00 |
36.00 |
2 days late |
|
|
8
|
23-Apr-97
|
12.00 |
23-Apr-97 |
12.00 |
24.00 |
|
|
|
9
|
7-May-97
|
12.00 |
7-May-97 |
12.00 |
12.00 |
|
|
|
10
|
21-May-97
|
12.00 |
21-May-97 |
12.00 |
00 |
Loan #2
Paid Off |
|
Please see
attachment VII of the Tool Kit.
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4.
Basic Record Flow
Study the
following table to see which records are used at each step of
the loan process. Read across to see what happens at each step.
Read down to see who does what. Please note that some of the forms
listed are in following sections of this chapter.
|
|
Borrower
|
Credit
Group
|
Group
Treasurer
|
Field
Agent
|
Loan
Manager
|
Loan
Application |
completes
Application |
evaluates
Application
and votes on
loan |
|
transfers
Application
to
GROUP FILE |
keeps
GROUP FILE |
Promissory
Note |
signs
Promissory
Note |
signs
Promissory
Note |
|
transfers
written
Promissory
Note
to office |
keeps
written
Promissory
Note in
NOTE FILE |
Regular
Payments |
makes
payment
records
payments on
Passbook |
|
records
payment in
Transfer
Report |
reports
payments to
office with
Transfer Report |
posts entry
in
Ledger |
Late
Payments |
fails to pay |
discusses
non-payment
in meetings |
|
reports late
payments to
office with
Non-payment
Report |
posts entry
in Ledger
and
follows up
with
client/Field
Agent |
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5.
Modifying Documentation
As you gain
field experience, you may want to modify or add to the tracking
tools presented here. However, before introducing additional recordkeeping,
check your procedures against these guideposts.
Ease
of use
Restrict
forms to the essential data. Be sure the form has sufficient space
for responses. In some questions, you can ask for check marks
next to preprinted choices.
Consistency
and accuracy
Insist that
forms are fully and accurately completed. Collection of faulty
or vague information serves no purpose.
Feedback
Make simple
charts from the information you collect. Use them to tell the
story to staff and participants on a regular basis.
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