The selection process.
BAP has a loan appraisal form to ensure that participants can afford the bicycle loan.
Here are the specific variables that we analyze in the process:
- Group dynamic – individuals have to apply in an already existing community group (typically 20-30 people each). BAP analyzes how cohesive the group is, taking into account activity, attendance, and application of internal rules.
- Health – including if the individual or a family member has a chronic illness.
- Child to Adult Ratio – the ‘dependency’ ratio as we coin it. This indicates another level of need.
- Household assets – income can be hard to measure, which is why we look at how much livestock people own or the number of mattresses, phones, tables, etc.
- Borrowing history – if applicable. This becomes especially important if they currently have a loan out.
- Character reference - one of the most important aspects of our loan appraisal is the individual character reference. We ask the savings group leaders about the individual's trustworthiness, reliability, and attitude.