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
 The founder & CEO- Mr. Ernest Paul
 Operates in Cuddapah, Kurnool & Mahabubnagar in 
Ananthpur and Prakasam  districts of A.P.
 Eleven area offices Kurnool -1, Kurnool -2, Adoni, Nandyal, 
Proddutur, Gadwal, Dhone, Anantapur, Hindupur, Ongole 
and Kadapa as on 31st March, 2009
Vision
 To emerge as highly qualitative, financially viable and self-
sustainable service rendering micro finance institution for 
women in Andhra Pradesh.

Mission
 To provide continuous, qualitative and affordable financial 
services for the poor women in urban and rural areas of 
Andhra Pradesh by establishing and promoting Self-
sustainable financial institutions 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
 The Executive Board Members 

 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

 Lending Methodology

**Follow-up meeting with interested/ potential members will 
be conducted on the very next day
 Willing to abide by the credit Policy of 
ive poor women in the age group of 20-50 years
:  SAADHANA
Willing to be a co-guarantor for other 
ual < Rs.1500/-
women in the group
< Rs.2500/-
Neither the woman nor her husband 
e resident of that particular Slum for at least one preceding year
are Govt. employees except like 
 house Scavengers, Sweepers, Watchman, 
etc.,
No two members in a group should 

have blood relation
 All the members should reside in the 
same street
 Products & Services

 General loan

Micro enterprise development loan [medl]

Social security scheme(sss)
 General loan
CHARGES FEATURES TARGET CLIENTS DELIVERY MODE

15% pa flat Term - 50 Weeks All borrowers One cycle  ranges 

from 7000-9000 
Documentation- Weekly Installments with an increase of 
Rs.20/- 2000 for every 
Size of the loan vary  subsequent cycle 
Loan Protection Fee  by cycle with ceiling amount 
(LPF): 2% Upfront  of 21,000
Up to 3rd Cycle & 1%  Collateral-Group 
from 4th  onwards guarantee  One time 
disbursement to the 
entire group (10 
members)
 Micro enterprise development
loan [medl]
CHARGES FEATURES TARGET DELIVERY MODE
CLIENTS

     15% pa flat   Term - 50 Weeks
     Documentation-   Weekly 
Rs.20/- Installments
     Loan Protection    Size of the loan vary Existing borrowers  The loan ranges 
Fee (LPF): 1% by cycle who have completed  from 25,000 
  Collateral-Group  two loan cycles. -50,000 vary with 
guarantee the enterprise
 
 Social security scheme(sss)
CHARGES FEATURES TARGET DELIVE
CLIENTS RY
   Total premium-Rs.125/- Designed to mitigate the risk & protect the  All borrowers -
    Premium-Rs.100/- welfare of the borrower
MODE
    Rs.25/- to cover funeral 
expenses of the client &  Compulsory for all active borrowers
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 towards funeral 
expenses
 Financial Summary
 

 PARTICULARS Apr '05 to Apr '06 to Apr '07 to Apr '08 to Mar'09
Mar '06 Mar' 07 Mar' 08

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

Number of Active 38,263 55,569 62,729 84,908
Loans
Loan Outstanding 164,486,100 300,716,702 359,923,143 540,294,471

Net Worth (Adjusted) 7,605.758 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 22.00 23.76

Administrative 15.60 11.49 11.05 11.21
Efficiency
Portfolio at Risk(>30 0.00% 0.00% 0.00% 0.00%
Days)
Portfolio at Risk(>90 0.00% 0.00% 0.00% 0.00%
Days)
Operational Self- 107.05 138.39 124.31 121.73
Sufficiency
Financial Self- 100.94 115.85 110.10 116.99
Sufficiency
 
 Sources of funds

Funders Total funds  Total  Outstanding Total no. of 

FWWB borrowed
35,90,00,000 repayment
23,40,00,016 12,49,99,984 loans
61

SIDBI 15,00,00,000 8,77,59,100 6,22,40,900 10

HDFC 17,90,00,000 9,85,47,618 8,04,52,382 16

ABN-AMRO 27,00,00,000 18,00,00,000 9,00,00,000 19

AXIS BANK 32,00,00,000 19,00,00,000 13,00,00,000 20

DCB 5,00,00,000 - 5,00,00,000 1

KARUR  5,00,00,000 31,25,000 4,68,75,000 2

VYSYA 1,37,80,00,000 79,34,31,734 58,45,68,266  

 Risk Management practices

Control environment
Control policies and procedures
Portfolio control
Internal monitoring and audit team (IMAT)
Delinquency management

 Control environment

     Highly committed and competent human resource of 
the organization with strong ethical base created a 
control environment in the organization.
 Control policies and procedures

    Mission  has well documented manuals, policies, and 


producers in the key areas like:
Operations-Comprehensive Operational Manual
Human resources - HR Manual
Financial management & Accounting policies - 
Financial Manual
Business development - Strategic Business Plan

 Portfolio control

1. Pre-disbursement 


Client appraisal 
Eligibility check


2. Post-disbursement


Zero tolerance policy 
Project verification/Loan utilization checks



 Delinquency management

Screening of Clients

Check on Dual/Multiple membership

Debt Absorption Capacity