Stage 1: A meeting between Lok Capital and the Promoter is arranged, in order to allow both the Promoter and the Lok team to understand each other’s philosophies and assess whether our respective objectives align.  

Stage 2: Lok Capital visits the MFI to assess/understand the microfinance programme, methodology and processes. The team interacts with staff as well as the clients. The MFI shares its past performance numbers and future projections.

Stage 3: If approved by Lok’s Investment Committee (IC), the Lok team offers a term sheet, specifying the amount of investment, structure of investment, proposed shareholding and the terms of investment. Upon mutual agreement, the term sheet is signed. 

Stage 4: After the term sheet is signed, a legal and accounting Due Diligence is carried out by a third party.  

Stage 5: Post the Due Diligence, an investment proposal is made to the IC. Upon the IC’s approval, a Shareholder’s agreement is drafted, discussed with the MFI and signed. Subsequent to the signing of agreements, the investment amount is disbursed.