DIMAN currently uses the Trust Bank methodology for group lending, which is documented in the SOP (Standard Operating Procedure) manuals. Thus, when a potential client contacts them to form a group, or when they investigate a new area in which to start a TRUST BANK group, DIMAN's staff will follow the SOP practices from the beginning process until the end.
Principal and interest repayments are collected weekly. A small additional amount ( minimum of Rp 1000) is collected by the group to provide additional funds for group activities.
DIMAN also provides graduation program for the clients who need bigger loan size. The programs are called Small Group and Individual Loans. Through this program, prospective clients can expand their business more rapidly.
DIMAN provides both compulsory training to its clients concerning such things as simple bookkeeping, group formation and optional training in areas such as health care and nutrition as requested by the clients.
The significant quality of life improvement is shown in the lives of DIMAN's clients. With their increasing income they can provide nutritious food for their children and buy appropriate clothes. It is not a change of the community life style but more as a transformation and awareness on how to live in a healthy way. The other effect of DIMANs program is that now the people are free from the moneylenders and have the ability to develop their businesses properly.
DIMAN particularly aim to assist women who are a majority of our clients. The TRUST BANK program has successfully motivated the local women to also help their husband in improving their family welfare. To support their business and social development, the small local entrepreneurs have been provisioned with training and lecture. The training materials consist of simple bookkeeping, basic business management and health education (diarrhea) . DIMAN also provide the client other training such as making cake, hairdresser, making soap (detergent), making soybean milk, etc.
"Payung Keluarga" provides two essential benefits for these credit customers. First of all, the outstanding balance of the credit is waived in the event of death of the loan taker. So the family will not be burdened with paying back the loan. Secondly, the family receives two times the original loan amount as an additional benefit. This additional benefit helps the low income family to overcome the crisis after the death of the breadwinner. The premiums will be paid as single premium by the credit customers upon loan disbursement.
In addition to the above multiplier effect, there will be indirect benefits though the development of local leaders; empowered by the training and information they receive through DIMAN. Improvements in the local economy and standards of living will also take place. The community will also benefit directly from information evenings organised by DIMAN as part of its MED methodology.
Much effort has been made by DIMAN in the area of community development, such as training on health, made possible through the routine weekly meetings. DIMAN is also considering the implementation of community development programs with future funding.
The effectiveness of the MED programs to improve the quality of people living in Tangerang can be enhanced by the provision of projects such as Village Road Improvements, Clean Water Supply and Better Sanitation. Similarly, the provision of community development projects to meet the needs of the people living in the coastal area, including access to Ice Blocks to keep their produce fresh, will improve the business and living conditions of those involved in the program.
Although no formal development programs have been conducted by DIMAN at this time, several community needs have been identified in areas which have been surveyed. The studies showed that: 28% of respondents need Clean Water; 19% said they need Puskesmas (Community Health Centre); while the need for a Posyandu (Integrated Health Services Post - smaller than Puskesmas) was noted by 7%. Better sanitation is required by one quarter of those surveyed, and clean toilets are needed by 27% of the respondents. The most commonly expressed need (41% of the respondents) was for Village Road Improvements, eg to permit the more isolated people to access markets.
One of DIMAN's strategies is the group lending program called Trust Bank.
A group of 15 to 30 poor entrepreneurs, mostly women come together to receive business loans, training and assistance. With guidance and encouragement, they select a leader and co-guarantee each other's loans. The power of women meeting together often makes a dramatic impact in the community.