BANARAS HINDU UNIVERSITY

SUMMER INTERNSHIP REPORT 2012

Topic:- To study the role of Cashpor micro Credit in the Socio- Economic Development of the people in Varanasi District

Under the supervision of Submitted by: Mr. suresh singh VINAY KUMAR (Branch manager) MBA(Agribusiness) Cashpor Micro Credit 3rd Sem. Sunderpur (Varanasi) Enrolement no-340854

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Session(2011-2013)

Acknowledgement-

I convey my sincere gratitude to Prof. S.K.Singh (Head & Dean), Faculty of

management studies, B.H.U for providing me an opportunity to undergo this summer

internship project. I am also grateful to Dr. HP Mathur, Assistant professor, faculty of

management studies, BHU, Varanasi, for her consistent support and care.

I would like to express my sincere thanks to Mrs. Deepti Nager, HRD of CMC, Varanasi

for giving me a chance to do my summer internship project in CASHPOR MICRO CREDIT,

VARANASI. It was their sincere permission due to which I became to perform to such a

challenging project.

I am highly obliged to Mr. Suresh kumar singh Branch manager, Sunderpur branch,

CASHPOR MICRO CREDIT. For providing me his valuable guidelines, support and for

providing me an opportunity to undertake this project. This project was a great opportunity

for me to get a first hand experience of professional culture that exists in an organization,

about the market conditions that exists for these products and qualities required to work

under various conditions.

My gratitude also goes to my mentors Mr. DM Singh for their valuable suggestions. I

would also like to thank all the members of Sunderpur, khojwa , Bajardiha, sukulpura,

Bhelupur, Gauriganj, saket nagar colony, Nariya, Madanpura, Nagwa, sukulpura,

Bajardiha, sonvarsha, jakkha, sarainanda, Badi gaibi, Nawabganj, shiwala, jagjiwan tola,

etc branch for their support and generous cooperation.

I can’t forget expressing my thanks to all the respondents, because without their help my

project will remain incomplete.

VINAY KUMAR

MBA (AGRI-BUSINESS)

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III-SEM , FMS, BHU

Cashpor stands for ‘Credit andSavings for the Hardcore Poor’

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TABLE OF CONTENTS

1 Executive Summary

2 Microfinance : Overview What is microfinance History Need of microfinance Features of microfinance Sources of rural credit Different models of microfinance

3 About Cashpor Micro Credit: History: Vision and Mission: Organizational Structure: Governance: Financials: Product & Services

4 Introduction: : socio-economic development: About the Project: Objective

5 Research Methodology 6 Swot Analysis

7 Data Analysis

8 Findings

9 Suggestions

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10 List of Abbreviations

11 Bibliography

12 Questionnaire

"If we can come up with a system which allows everybody access to credit while ensuring excellent repayment - I can give you a guarantee that poverty will not last long,

- Prof. Dr. Muhammad Yunus."

Executive Summary

The present study assess the role of Cashpor Micro Credit in Socio-economic development of people in varanasi .The study was conducted in Sunderpur branch of Varanasi district.

The over all finding of the study suggest that micro credit and other social activity of CMC has significantly improved the access to financial services of urban poors and had considerable positive impact on the socio-economic condition and reduction of poverty of cashpor’s clientsand their household. Because CMC is exclusively based on women, it also helps in women empowerment, gender equality other than financial support. It has increased the opportunities of women entrepreneurship.The social activity (health

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education, medical camp, scholarship programme, and other knowledge about insurance, scale of interest) running by CMC has also great impact on cashpor’s client and their life style have improved.

MAJOR FINDINGS CMC is exclusively based on women members. Micro loans are disbursed only to those members who are below poverty

level(BPL) according to CASHPOR HOUSING INDEX(CHI) Function as JLG Model(joint liabilities group) Change in household income after 3 to 4 loan cycle has shown a significant

growth. About 95 percent of households reported that the social empowerment of

women had increased after attaining the membership in the CASHPOR over a period of time.

About 95 percent of households reported that the social empowerment of women had increased after attaining the membership in the CASHPOR over a period of time.

A significant improvement in control over money with respect to buying of consumer durable assets was reported. Increase in the decision-making and control over expenditure on children’s education.

What is Microfinance?

Microfinance is the provision of financial services to low-income clients or solidarity

lending groups including consumers and the self-employed, who traditionally lack

access to banking and related services.

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More broadly, it is a movement whose objective is "a world in which as many poor

and near-poor households as possible have permanent access to an appropriate

range of high quality financial services, including not just credit but also savings,

insurance, and fund transfers." Those who promote microfinance generally believe

that such access will help poor people out of poverty.

Meaning

A type of banking service that is provided to unemployed or low-income individuals

or groups who would otherwise have no other means of gaining financial services.

Ultimately, the goal of microfinance is to give low income people an opportunity to

become self-sufficient by providing a means of saving money, borrowing money and

insurance.

As these financial services usually involve small amounts of money - small loans,

small savings, etc. - the term "microfinance" helps to differentiate these services from

those which formal banks provide. Why are they small? Someone who doesn't have a

lot of money isn't likely to want or be able to take out a $50,000 loan, or be able to

open a savings account with an opening balance of $1,000. It's easy to imagine poor

people don't need financial services, but they are using these services already,

although they might look a little different.

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HISTORY

Microcredit has come a long way. Professor Yunus, Managing Director of Grameen

Bank, promoted it in 1974 in Jobra, a village in Chittagong of Bangladesh, and it has

spread all over the world. The strength of microcredit lie in its ability to organize idle

women into a productive workforce with their proven creditworthiness. It is

believed that 25 million people worldwide are now using microcredit to undertake

income-generating or self-employment activities; of these, 90% are women.

Microcredit has not only made women more productive, it has also empowered them.

As a result women are now integrated into socio-economic activities, contributing to

family income and decision making and exercising more control over their fertility,

which allows them to take better care of their children.

The advent of micro-finance has proven to be one of the most significant contributors

to poverty alleviation that the development community has known. From its

inception in the latter part of the 20th century we have observed micro-finance grow

globally ushering in new possibilities for improving lives and creating economic

growth. Micro-finance has shown itself to be dynamic, providing a rich range of

products and services that can be adapted to specific environments around the rural

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India. Today's micro-finance community has brought forth a wealth of creative and

innovative ideas, not least of which are the newly emerging micro-insurance services.

The introduction of micro-insurance under the umbrella of micro-finance has been

no less than a major milestone in product development. Though we remain at the

cutting-edge of this field, we are convinced that if micro-insurance services are

indeed realized, it would finally afford those most vulnerable some protection from

their greatest threats. Micro financing is the provision of financial services to poor

and low income households without access to formal financial institutions. As

defined by the Asian Development Bank (ADB), it is - A provision of a broad range of

financial services such as deposits, loans, payment services, money transfers, and

insurance to poor and low-income households and their micro- enterprises. In the

late 90s, numerous agencies involved in micro-financing operations in India started

adding other financial services, including micro-insurance to its micro-finance

operations. The situation of micro-financing in India has thereby improved with

certain steps taken by the government and now, the private players, banks etc as

well. Hence was adopted the concept of micro-credit in India. Success stories in

neighboring countries, like Grameen Bank in Bangladesh, Bank of Rakiat in Indonesia,

Commercial & Industrial Bank in Philippines etc, gave further boost tothe concept in

India in the 1980s. India thus adopted the similar model of extending credit to the

poorest sector and took a no. of steps to promote micro-financing in the country.

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Empowerment implies expansion of assets and capabilities of people to influence

control and hold accountable institution that affects their lives (World Bank Resource

Book).Empowerment is the process of enabling or authorizing an individual to think,

behave, take action and control work in an autonomous way. It is the state of feelings

of self-empowered to take control of one s own destiny. It includes both controls‟

over resources (Physical, Human, Intellectual and Financial) and over ideology

(Belief, values and attitudes) (Batliwala, 1994).

Empowerment can be viewed as a means of creating a social environment in which

one can take decisions and make choice either individually or collectively for social

transformation. It strengthens innate ability by way of acquiring knowledge power

and experience.

Empowerment is a multi-dimensional social process that helps people gain control

over their own lives communities and in their society, by acting on issues that they

define as important. Empowerment occurs within sociological psychological

economic spheres and at various levels, such as individual, group and community and

challenges our assumptions about status quo, asymmetrical power relationship and

social dynamics. Empowering women puts the spotlight on education and

employment which are an essential element to sustainable development.

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DIFFRENT MODELS OF MICROFINANCE

THE DIRECT-ACCESS-BANK LED MODEL or SHG - BANK LINKAGE MODEL

This model involves the SHGs and individuals financed directly by the banks viz., Commercial Banks (Public Sector and Private Sector), Regional Rural Banks (RRBs) and Cooperative Banks.

THE INDIRECT CHANNEL PARTNERSHIP or MFI - BANK LINKAGE MODEL

This model covers financing of Micro Finance Institutions (MFIs) by banking agencies for on-lending to SHGs and other small borrowers covered under microfinance sector

JLG (JOINT LIABILITY GROUP) MODE

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Branch

SHG

BANK

NGO

SHG – BANK LINKAGE MODEL

BANK

MFI’s

Ind./SHG/JLG

MFI – BANK LINKAGE MODEL

Why Microfinance Can Change the Way the World Works

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History-

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A) PROVIDES TRAINING, TECHNIQUES & MICRO CREDIT FACILITIES TO RURAL & POOR WOMEN AND OTHER MICRO CREDIT INSTITUTIONS ACCORDING TO GRAMEEN BANK MODEL (BANGLADESH) WITH THE HELP OF FOLLOWING INSTITUTIONS. 1. CASHPOR FINANCIAL & TECHNICAL SERVICES Ltd. 2. CASHPOR MICRO CREDIT 3. CASHPOR FINANCIAL SERVICES Ltd.B) CREATES FAVOURABLE & IDEAL CLIMATE FOR MICRO FINANCE INSTITUTIONS THROUGH FOLLOWING SOCIAL WELFARE PROGRAMS :1. PROVIDES SCHOLARSHIP AWARD FOR CHILDREN OF POOR CLIENTS.2. PROVIDES HEALTH FACILITIES THROUGH HEALTH CAMP.3. PROVIDES TRAINING & TECHNIQUE OF MALBERRY PLANTATION & SERICULTURE4. PROVIDES LIVESTOCK MANAGEMENT TRAINING.

CASHPOR Financial and Technical Services (CFTS) was started in September 1996 as

a financial Company. The purpose of this Company was to give access to financial

services in the form of small amounts of credit, to poor rural women, as an

alternative to the existing money lenders which were known for charging usurious

rates of interest, as well as perpetuating a never ending cycle of debt. As the

Company began to expand, it became necessary to move to a different legal form, and

so CASHPOR Micro Credit (CMC) was started in Dec. 2002 as a subsidiary Section 25

company of CFTS. CASHPOR India has subsequently become known in the

microfinance sector, as a microfinance provider that devotes its attention exclusively

to the provision of micro-credit to the poorest of the poor, through its unique

“targeting approach” which filters the poorest clients and lends to them.  

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Cashpor is one of the largest microfinanceinstitutions (MFIs) in

northern India,currently serving over 470,000 womenthrough 269

branches. Based in the city of Varanasi, Uttar Pradesh, Cashpor is

committed to identifying and motivatingpoor women in rural areas,

through delivering financial services in a timely ,honest and efficient

manner.

CASHPOR India started its operations in mid 1997 by disbursing its first loan on

15thSeptember in Mirzapur District of Uttar Pradesh. The entity was CASHPOR

Financial and Technical Services (CFTS) Ltd, working with an objective to reduce

poverty in eastern U.P. and western Bihar through the provision of Micro finance

services to the rural poor women timely, honestly and efficiently. Its first six

branches were set up in July 1997, to cover the southern part, which was poorer part

of the district. Its next six branches were opened in October 1998, to cover rest of the

District. Its original branches having acute poverty level were finding it difficult to

become financially viable, because of little demand of loan amount, low population

density and frequent casualties in the client’s family leading to high portfolio at risk.

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The lack of market infrastructure limited the avenues of profitable enterprise for the

poor.

Performance indicators Dec 2010

Active borrowers 470,893

Outstanding loan portfolio (A$000)¹ 57,569

Number of branches 269

Operational sustainability * 110%

PAR** > 30 days 0.42%

1.1 PROBLEM STATEMENT :

Nowadays, Microfinance is treated to be a tool for poverty alleviation & it can change

the lives of the poor. There may not be a quantum jump in the income but it is

possible still to ensure a reasonable rise in the income of the poor & the economic

conditions can spill over effectively in improving other parameters of a better quality

of life.

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The changed focus on income generation activities and improvement in the quality of

life of the people through Self Help Groups has provided a new thought for economic

development of the area of the study in comparison to the trickle down theory but

it’s viability, impact and sustainability is still to be confirmed. The attempt of the

study is to find out reliability of this approach on improvement in the quality of life

the people or to see if another zero in the name of development has replaced a zero.

The study is to determine the efficacy of micro-lending operation initiated by the

CASHPOR in the Mirzapur District and to see that to what extent these micro-credit

operation are efficient to combat the problem of poverty in Indian context which is

prevailing in India for so many years despite of valiant efforts of the government to

eradicate it since last 57 years with no fruitful results. If initiatives of micro-credit

can enhance the quality of life of the people living below poverty line than certainly

new doors are open in front of the policy makers of the country to adopt a new

insight for the problem of eradication of poverty and new efficient policy based on

micro-credit can be implemented in the country as there is no doubt that government

can reach the people to large scale compared to the NGOs and other voluntary

organisation.

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1.2 MARKET POTENTIAL & STRATEGY :

CASHPOR India worked with same infrastructure until its financial breakeven. It

broke even first time in March 2003 and second time in the year of March 2008.The

story of the year has to be achievement of financial break-even by CASHPOR Micro

Credit, as planned five year ago, with the achievement of an Operating Self-

Sufficiency of 103%,compared to the planned target of 104%.In the event, we needed

operations in 13 instead of the 10 Districts planned; but otherwise the profile of

break-even is pretty much as planned:303,145 Active Loan Client(as against the

286,965 planned), a portfolio of Rs.1,473,157,654(as compared to the Rs.151.2 Crore

planned),and PAR of 1.8%(well within the target of <5%). Even our basic cost and

yield ratios are close to the targets: an Administrative cost Ratio(ACR) of 0.13(0.14),

a Total Cost Ratio of 0.26 (0.21), and a Yield on Portfolio of 26% (22%), Fortunately

our accumulated losses prior to break-even at Rs. 4.7 crores are considerably less

than the projected figure of Rs. 6.9 crores.

Cashpor recognizes that financial sustainability is a necessary condition for

maximizing the scope and depth of their outreach to the poor. The Cashpor brand of

microfinance services is a group lending model. All Cashpor clients are women

whose income falls below India's official poverty line. In this target group, preference

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is given to the poorest women who tend to come from social groups that are most

marginalized.

Micro loans for income generation are Cashpor Micro Credit's primary product, and

clients must invest in an income generating activity that can make repayment

possible. Typical activities include livestock for milk production, trading, services,

agriculture, etc.

The size of loan that is disbursed is dependent upon the number of times a client has

previously taken out loans and how timely their payments have been. Cashpor also

offers an emergency loan product for unforeseen expenses (i.e., illness, food deficit,

etc.).

In the past fiscal year, outreach has doubled, and the portfolio has nearly doubled.

Based on this, the Cashpor Group has developed an aggressive expansion plan

through fiscal year 2009/2010, which would provide financial services to half a

million households in eastern Uttar Pradesh and Bihar.

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Since forging a partnership in 2000, Grameen Foundation has actively worked with

Cashpor Micro Credit in helping it achieve its goals of poverty alleviation. In the past

two years alone, loans, growth guarantees, and equity investments have been made

totalling over $600,000. Outside of financial assistance, training has been carried out

for the Poverty Progress Index (PPI) and assistance has been provided to CASHPOR

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Micro Credit in writing a business plan and in providing feedback on its

hardware/software needs.

VISION AND MISSION

VISION-We see all the BPL women in eastern Uttar Pradesh & Bihar having access to microfinance services; and many utilizing them to lift themselves & their families out of poverty.

MISSION-Our mission is to identify & motivate poor women in rural areas, and to deliver financial services to them in an honest, timely and efficient manner, so that our vision is realized & CMC itself remains a financially sustainable Micro Finance Institution for the poor

DEVELOPMENT GOALS

Increased access to financial services; Poverty reduction; Employment generation;

Development of start-up enterprises; Growth of existing businesses; Children's schooling;

Health improvement; Gender equality and women's empowerment; Water and sanitation

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GOVERNANCE

Board of Directors

Members of Board

CASHPOR group is following one of the best Corporate Governance Practices. The Company is governed by its highly qualified and skilled Board. At present CASHPOR has 9 members in its Board comprising of experts in the field of Microfinance, banking,

development, corporate law and finance. The Company is also having adequate representation from corporate, banking, administration and microfinance sectors.

 

Chairman CASHPOR Trust

.Mr. Sanjoy Dasgupta, aged 70 years is a commerce graduate. He is the Chairman of CASHPOR Trust and Director of the Company and has experience of more than 10 years in Micro Finance. He is also Director CFTS Pvt. Ltd. and CFS Pvt. Ltd. In addition to this he is

ex-Chief Administrative Officer in PIDT.

Chairman CFTS,CMC,CFS

Prof. David S. Gibbons, aged 70 years, is Ph. D in political economy. He is Chairman of the Company. He is also the Chairman Cashpor Financial & Technical Services Pvt. Ltd.

(CFTS) and Cashpor Financial Services Pvt. Ltd. (CFS), and settler-Trustee of CASHPOR Trust. He has more than 20 years experience of promoting and building institutional capacity

for GB-type microfinance institutions in many countries throughout Asia.He is author and joint-author of many papers and training manuals on building institutional

capacity for microfinance for poor women, and on it's financing

   

Vice Chairperson  

Ms. Moumita Sensarma, aged 43 years is a Chartered Accountant (CA). She is Honorary Vice Chairperson of the Company. She is also the Chairperson of the Audit and Credit +

Committees of Board. Formerly Head of Microfinance and Sustainable Development India for ABN AMRO Bank. She has experience of more than 7 years in micro finance.

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Managing Director  

Mr. Mukul Jaiswal, aged 38 years is a Chartered Accountant (CA). He is also the Managing Director of CFS Pvt. Ltd. and Director- in- Charge of CFTS Pvt. Ltd. He has experience of

more than 9 years in micro finance.

     

Director, CMC Board Positions/Other Professional

 

Mr. J. N. L. Srivastava, aged 67 years is a M.A. He is an independent Director of the Company; and also a retired IAS Officer, and Managing Trustee, IFFCO Foundation, New

Delhi. 

   Director, CMC Board Positions/Other Professional

 

Mr. Deep Joshi, aged 63 years, is an independent Director of the Company; and has an MBA, SM (Mechanical Engineering), BE. He has an experience of more than 25

years in Micro Finance. He is also founder- Director of PRADAN. Deep was winner of the Magsaysay Award in 2009.

   Director, CMC      

Ms. Vijayalakshmi Das, aged 59 years is a nominee Director of the Grameen Foundation USA and Vinod Khosla; and is a post Graduate in Economics. She is also

a Director in CFTS Pvt. Ltd. and Chief Executive, Ananya Finance for Inclusive Growth Pvt. Ltd. and has experience of more than 11 years in Micro Finance.

   Nominee Director ICICI Bank  

Mr. Utpal Isser, aged 35 years, is the Nominee Director of ICICI Bank Ltd. and is a PGDRM (IRMA). He is also the Deputy General Manager of ICICI Bank Ltd.

 

   Nominee Director, Dia Vikas  

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Mr. Christopher Murdoch, aged 47 is the Nominee Director of Dia Vikas and the Director of Strategic Services, Opportunity International, Australia.

   Board Positions/Other Professional  

Ms. Anuvinda Varkey, aged 58 years, is a lawyer and Independent Director in CFS Pvt. Ltd.

 

   

The organizational structure is as follows:

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Range of products and services

A.Financial products and services offered

Microcredit loans for microenterprises; Loans for agriculture; Microcredit for other

household needs/consumption

Credit life insurance.

1.Loan ProductsCASHPOR has 3 loan products:

1. Income Generating Loans : Rs. 2000/- to Rs. 14000/-

In the first cycle, a newly joined member gets Rs. 2000/- to Rs. 8000/-In the second cycle, a member gets Rs. 2000/- to Rs. 12000/-In the third cycle, a member gets Rs. 2000/- to Rs. 14000/-Loan tenure is 52 weeks

(Clients may pay weekly or monthly)

2. Emergency Loans : Rs. 1000/- only

A member, who has some emergency situations such as flood, fire, critical disease or major accidents, can be granted an emergency loan. The loan tenure is 25 weeks.

3. Bara Loan: Rs. 15000/- to Rs. 25000/-

 Bara Loan Eligibility: 1. A member who has taken loans in at least 4 cycles and is associated with the company for at least 3 years and has maintained good record with the company. Loan tenure is same as Income Generating Loan (IGL).

2.Saving product

3.Functioing of transcorp(WesternUnion Money Transfer)

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Credit Plus Activities

Financial literacy education;

Basic health/nutrition education

Other education services offered

Other health services offered

Leadership training for women

Scholarship opportunities

Community health leader training

Two Important Social Development work in Mirzapur District

The Scholarship Program In Mirzapur District

The purpose of the scholarship program is to encourage clients to keep their well performing children in the school and to help them financially. Fifty scholarships are available annually in CMC branch (Mirzapur District). Based on their examination results at each level in the educational system, the applicant children are ranked. Fifty percent of scholarships are reserved for girl children, and other half are distributed to open competition. Till last year, this program was being run by CASHPOR Trust with the help of two staffs of the company which were lent to CASHPOR Trust. Now from the current financial year, this program will run by the companyitself. .

Details of scholarship programs are follows:

Scholarship Distribution at Bhawan Branch: -

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Disbursement of Scholarship to 50 student of good cashpor client. Out of 50, 25 girls & 25 boys got the scholarship in2008-09. This was third time of disbursement of scholarship at Bhawan Branch.

Almost in all branches of CMC in Mirzapur and some branches of Varanasi, scholarship programme is running.EX-

Raja talab(2007-08),Lal ganj(2007-08),Mahraj ganj(2008-09),bhawan mini branch(2006-09),Suriyawan,Narayan pur,Adalhat,Paho,Gursndi,etc

SI.No. Category of Scholarship Eligibility Criteria Amount to be paid to each student

1. Primary Result of fifth standard. Rs. 50/- only per student

2. Upper Primary Result of eighth standard

Rs. 50/- only per student.

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3. Upper Primary Result of secondary standard.

Rs. 100/- only per student.

4. Intermediate Result of Higher secondary  Standard

Rs. 125/- only per student

IIn the year 2009-2010 Scholarships were awarded to 1064 Children under 34 branches of CMC. The total Expenditure during the last year was Rs.11,25,675/-. Out of these 1064 Children 602 were girls & 462 were boys. Financial support was provided in full by Cashpor  Micro Credit.

Health Camp at Raja Talab Branch: -

It was organized first health camp for CMC client & their family member CASHPOR at Raja Talab.This health camp was organized exclusively for CMC’s good clients & their family member of Raja Talab Branch. In this health camp, 2500 patient were treated byrenowned doctors of BHU & Mata Anandmayee Hospital; Shivala, Varanasi. This camp was organized by CASHPOR group in collaboration with Mata Anandmayee Hospital out of 2500, 1000 male, 1000 female & 500 child were treated by doctors of different expertise, name some doctors who gave their services voluntarily for camp are; Dr. Prakash Devedi, eye specialist. Whole time of Mata Anandmayee Hospital Shri Prtho Brahmchari encouraged us by him valuable presence.

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Financial Literacy workshops for clients

Every year we conduct a financial literacy program to educate our clients on the existing baskets of products regarding its actual cost & pricing etc. We also make them aware about the new developments taking place in the company. This year we initiated a insurance product for our clients, here our core focus was on the awareness and need for the insurance.

Community Health LeadershipCMC has signed an agreement with healing fields foundation unique project recently launched by the company (selected from our women borrowers) on pilot basis in Buxar District of Bihar 21st September 2010 in association with Healing Fields Foundation (HFF). Under this project our company and HFF will select 80 women among our clients and train them for six months to become a full fledged Community Health Leaders (CHL). Each of such 80 CHL would be able to provide health intermediary services to 300 Cashpor Clients. Households with average total population of 1500. In this initiative 80 CHL would be able to reach 24000 CASHPOR clients households with a population 120000. Company expects that through this program Company will be able to bring  measurable changes among our clients in terms of Health seeking behavior, improvements in health and dietary habits, awareness of healthcare programs and services of the government, possible decrease of preventable and communicable illness like vector borne and water borne, over a  period of  2 to 4 years. If this pilot is successful, then it will be disseminated to other CASHPOR districts.

Integration of Health EducationThis is a very unique project recently started by the company on pilot basis. Under this project, all center managers of eighteen selected branches in six districts (Buxar, Ballia, Chandauli, Ghazipur, Mirzapur, Varanasi) are engaged in providing fifteen minutes of health education for clients in each of their center meetings after conducting their normal business in each such center on daily basis. Currently all these center managers are delivering lessons to our members of the topic “facing illness that attack our children”. For this purpose, these center managers have been provided training by our training department in association with ‘Freedom From Hunger’ and ‘Micro Credit Summit campaign’. We getting a positive response from our clients as well as from our staffs. Our Center Managers and Supervisor are highly motivated in providing healthcare trainings to the clients.

FINANCING STRUCTURE

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Cashpor Micro Credit Balance Sheet as at 31 March 2011

(All amounts in Indian rupees)

SOURCES OF FUNDS Schedule 31 March 2011 31 March 2010

Shareholders' fundsShare capital 2 53,900,000 53,900,000

Reserves and surplus 3 120,613,843 45,346,650

174,513,843 99,246,650 481,364,813 287,051,335

Subordinated loan funds - Foreign currency [refer Schedule 19 (x)] 10,269,500 13,767,700 - Rupee currency [refer Schedule 19 (xi)] 296,581,470 174,036,985

Loan fundsSecured loans 4 2,249,122,401 2,278,303,725 Unsecured loans 5 7,500,000 39,833,337

2,737,987,214 2,605,188,397

APPLICATION OF FUNDS

Fixed assets 6 Gross block 47,176,047 44,934,372 Less: Accumulated depreciation (39,367,970) (37,652,101)Net block 7,808,077 7,282,271 Capital work in progress - 262,000

7,808,077 7,544,271

Investments 7 - 50,000,000

Current assets, loans and advancesCash and bank balances 8 691,754,191 705,304,355 Loan portfolio 9 2,082,512,303 1,968,933,227 Other loans and advances 10 45,647,275 54,772,543 Other current assets 11 11,509,218 9,790,880

2,831,422,987 2,738,801,005

Current liabilities and provisionsCurrent liabilities 12 88,001,808 183,792,914 Provisions 13 13,242,042 7,363,965

101,243,850 191,156,879

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Net current assets 2,730,179,137 2,547,644,126

2,737,987,214 2,605,188,397

Significant accounting policies 1 Notes to accounts 19 The Schedules referred to above form an integral part of the Balance Sheet

As per our report attached

for B S R and Company For Cashpor Micro CreditChartered AccountantsFirm Registration No: 128900W

Zubin Shekary [Mukul Jaiswal] [Sanjoy Dasgupta]Partner Managing Director DirectorMembership No. 48814

Place:Date:

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Cashpor House Index (CHI) 

CASHPOR uses a tool, the CASHPOR Housing Index (CHI), to identify poor household in cost effective manner. It is an index based on the height of the wall and material used in the wall and roof of a house. Poor people struggle for food and clothing and they live in small houses, made of locally available materials with their own labour (means no cost is involved). The logic of CHI is based on the premise that poor people spend their money on basic necessities (food, clothes, diseases etc.) and social obligations (daughter’s marriage, death ceremony etc), while any surplus is invested in their houses. A good house not only reduces their vulnerability, but denotes higher social status and self esteem. Therefore, the quality of house is a reflection of prosperity of the household.

The number of poor households in a village is determined by use of the CASHPOR House Index (CHI).The CHI has been further adapted for use in eastern UP and Bihar. As it is an area of long established settlement, houses tend to be larger than in more recently settled areas. Double-storey houses are still excluded, but otherwise, size of the house is not a critical indicator. Rather height and materials of the walls and materials of the roof have become the key indicators. Further in view of the recent Government policies, various State Governments have been issuing patta land and Indira Awaas (oneroom pucca houses) to the poor people. Such land and houses are to be ignored, provided their occupants fulfil the asset norms of CASHPOR.

Cashpor Housing Indexa. Height of the Walls and Materials used Score  i. More Than 5 feet and made of brick. 4  ii. More than 8 feet and made of mud. 2  iii. Between 4 and 8 feet and made of mud. 1

b. Materials  of Roof    i. Concrete/Pucca/Patia/New Tiles/GI Sheet 2  ii. Old Tiles /GI Sheet 1  iii. Thatch/Straw/Plastic/Leaves 0c. Maximum Score 6d. Poverty Status    i. Non Poor 4 or more  ii. Moderately Poor (MP) 3  iii. Very Poor (VP) 2 or lesse. If the house index score is =<4 and for the occupants of government allotted houses,

you must conduct the asset interview.

Following households are not eligible for our program:

Households, where any member has any type of motor vehicle, like a motor bike, car, jeep, van, tractor, hand tractor, etc.

38

The house is built with brick walls and a reinforced concrete roofn(excluding the Government allotted houses).

How is the PPI created?1. Start the representative national income/ expenditure survey.2. Analyze the data to rank indicators that strongly correlate with poverty.3. Indicators are tested and vetted with local MFIs and representatives.4. Results are highly accurate with 90% confidence most PPIs are accurate within +/ -1 -3% with sufficient sample

size.

Progress out of Poverty Index for India

  Indicator Value Points

1 How many people aged 0 to 17 are in the house hold.

A. Five or moreB. FourC. ThreeD. Two E. One

F. None

048132027

2 What is the house holds principal occupation. A. Laborers (agricultural, plantation, other farm, hunters, tobacco prepares, product market and other laborers)

B. Others

C. Professionals, technicians, clerks, administrators, managers =, executives, directors, supervisors and teachers.

0

 

8

14

3 Is the residence all pucca (burnt bricks, stone, cement, concrete, jackboard/ cement-plastered reeds, timber, tiles, galvanized tin or asbestors cement sheets)?

A. No

B. Yes

04

4 What is the household’s primary source of energy  for cooking?

A. Firewood and chips, charcoal, or none.B. Others

C. LPG

0

517

5 Does the household owns a television? A. No

B. Yes

06

6 Does the household own a bicycle, scooter, or motorcycle?

A. No 05

39

B. Yes7 Does the household own an almirah/dressing

table.A. No

B. Yes

03

8 Does the household owns a swing machine? A. No

B. Yes

06

9 How many pressure cooker or pressure pans does the household owns?

A. NoneB. One

C. Two or more

069

10 How many electric fans does the household owns?

A. NoneB. One

C. Two or more

059

DESCRIPTION OF STUDY AREA

40

About the City-

Varanasi is also known as Benares, Banaras, or Benaras or Kashi or Kasi is a famous

Hindu holy city situated on the banks of the River Ganga. It is one of the oldest

continually inhabited cities in the world, dating back thousands of years and

contemporaneous with the Sumer civilisation.The city is called Kasi, "the luminous" in the

Rigveda. It is often also referred to as "city of temples and learning". The Varanasi City is

the district headquarters of the Varanasi district. Varanasi is also renowned for its rich

tapestry of music, arts, crafts and education. Varanasi abounds in the art of silk weaving,

an exotic work of art which manifests itself in precious Banarasi Silk Sarees and Silk

brocades which are cherished as collector‟s items across the world today. Important

Rivers :

Varuna, Ganga and Assi rivers flow through the district.

Climate:

Varanasi has a humid subtropical climate with high variation between summer and winter

temperatures. Summers are long, from early April till October, with the monsoon season in

between. The average temperature in summers is 32°C–46°C. Winters are from December

to February. The average temperature in winters is 5°C–15°C. The average annual rainfall

is 1110 mm (44 in). Fog is common in winter while hot dry winds called loo blow in

summer. The city is relatively free from the air pollution. Attractions:

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Shri Kashi Vishwanath Mandir, Sarnath, New Vishwanath Temple, Kal Bhairav,

Sankatha Temple, Mritunjay Mahadev Temple, Tulsi Manas Temple, Durga Temple,

Sankatmochan Temple, Bharat Mata Temple

Facts:

Table 1: District level indicators, Varanasi

Population – District* -3138671 persons

Urban population-District* -1260571 persons

Slum population-District***- 457568 persons

SC & ST* 436314- persons

TV at home** -55.2 %

Mobile Phone ownership**- 44.8 %

Indicators based on DLHS-2 and DLHS-31

Indicator DLHS-3 DLHS-2

Total Total

Women married <18 yrs 37.9 43.7

Women 20-24 with 2+ births 59.2 52.9

Institutional Births 54.5 34.4

Family planning Use

Any method 57.0 52.5

42

Any modern method 43.5 41.9

Source: * Census of India, 2001

** District Level Household Survey-3, 2007-08

*** State Urban Development Authority, 2003-04

Table 2: Urban Slums in Varanasi: At A Glance

Indicators Numbers

Total Slum Population (Census 2001) 457,613

Average Household Size (Census 2001) 8

Total Number of Households (Census 2001) 57,202

Total BPL Population (SUDA) 96,344

Total Number of BPL Households (SUDA) 12,043

Source: Census 2001; SUDA, Varanasi

Economic Base:

Out of total inhabitants of 1,202,443 (in 2001) in VaranasiUA, only 26.64% was recorded

as employed, in which only10.72% was engaged as industrial and manufacturing workers.

Varanasi has several small cottage industries,including Silk sari making, the production of

textiles such ashand-woven carpets, and handicrafts. Banarasi paan (betelleaf) and khoa (a

milk product) are popular, and the relatedsmall-scale industries employ many people.

43

Pic-

A meeting in Sunderpur area

44

ABOUT PROJECT TITLE

Socio-economic development is the process of social and economic

Development in a society. Socio-economic development is measured with indicators, such

as GDP, life expectancy, literacy and levels of employment. Changes in less-tangible

factors are also considered, such as personal dignity, freedom of association, personal

safety and freedom from fear of physical harm, and the extent of participation in

civil society. Causes of socio-economic impacts are, for example, new technologies,

changes in laws, changes in the physical environment and ecological changes.

Social change refers to an alteration in the social order of a society. It may refer to the

notion of social progress or sociocultural evolution, the philosophical idea that society

moves forward by dialectical or evolutionary means. It may refer to a paradigmatic change

in the socio-economic structure, for instance a shift away from feudalism and towards

capitalism social development theory attempts to explain qualitative changes in the

structure and framework of society, that help the society to better realize its aims and

objectives. Development can be broadly defined in a manner applicable to all societies at

all historical periods as an upward ascending movement featuring greater levels of energy,

efficiency, quality, productivity, complexity, comprehension, creativity, mastery,

enjoyment and accomplishment. Development is a process of social change, not merely a

set of policies and programs instituted for some specific results. This process has been

45

going on since the dawn of history. But during the last five centuries it has picked up in

speed and intensity, and during the last five decades has witnessed a marked surge in

acceleration.

Economic development is the increase in the standard of living in a nation's

population with sustained growth from a simple, low-income economy to a modern, high-

income economy. Also, if the local quality of life could be improved, economic

development would be enhanced. Its scope includes the process and policies by which a

nation improves the economic, political, and social well-being of its people.

Socioeconomics or socio-economics or social economics is an umbrella

term with different usages. 'Social economics' may refer broadly to the "use of economics

in the study of society. More narrowly, contemporary practice considers behavioral

interactions of individuals and groups through social capital and social "markets" (not

excluding for example, sorting by marriage) and the formation of social norms. In the

latter, it studies the relation of economics to social values. A distinct supplemental usage

describes social economics as "a discipline studying the reciprocal relationship between

economic science on the one hand and social philosophy, ethics, and human dignity on the

other" toward social reconstruction and improvement or as also emphasizing

multidisciplinary methods from such fields as sociology, history, and political science. In

criticizing mainstream economics for its alleged faulty philosophical premises (for

46

example the pursuit of self-interest) and neglect of dysfunctional economic relationships,

such advocates tend to classify social economics as heterodox.

In many cases, socioeconomists focus on the social impact of some sort of economic

change. Such social effects can be wide-ranging in size, anywhere from local effects on a

small community to changes to an entire society. Examples of causes of socioeconomic

impacts include new technologies such as cars or mobile phones, changes in laws, changes

in the physical environment (such as increasing crowding within cities), and ecological

changes (such as prolonged drought or declining fish stocks).[citation needed] These may

affect patterns of consumption, the distribution of incomes and wealth, the way in which

people behave (both in terms of purchase decisions and the way in which they choose to

spend their time), and the overall quality of life.

The goal of socioeconomic study is generally to bring about socioeconomic development,

usually in terms of improvements in metrics such as GDP, life expectancy, literacy, levels

of employment, etc.[citation needed]

Although harder to measure, changes in less-tangible factors are also considered, such as

personal dignity, freedom of association, personal safety and freedom from fear of

physical harm, and the extent of participation in civil society.

Socioeconomic status (SES) is an economic and sociological combined total measure of a

person's work experience and of an individual's or family’s economic and social position

relative to others, based on income, education, and occupation. When analyzing a family’s

47

SES, the household income, earners' education, and occupation are examined, as well as

combined income, versus with an individual, when their own attributes are assessed.

Socioeconomic status is typically broken into three categories, high SES, middle SES, and

low SES to describe the three areas a family or an individual may fall into. When placing a

family or individual into one of these categories any or all of the three variables (income,

education, and occupation) can be assessed.

A fourth variable, wealth, may also be examined when determining socioeconomic status.

Additionally, low income and little education have shown to be strong predictors of a

range of physical and mental health problems, ranging from respiratory viruses, arthritis,

coronary disease, and schizophrenia. These may be due to environmental conditions in

their workplace, or in the case of mental illnesses, may be the entire cause of that persons

social predicament to begin with.

48

: PROJECT REPORT:

ABOUT THE PROJECT

49

To study the role of Casphor Credit in the Socio-Economic Development of the people in Varanasi District.

Objectives:

1) To determine the economic status of the customers after and before the loan sanction

2) To determine the social upliftment of the customers under Casphor credit. Health related development Literacy level enhancement Women entrepreneurship development Awareness about education

3) To evaluate the satisfaction level among the clients of Cashpor Micro Credit.

RESEARCH METHODOLOGY

Background:

“After all, the ultimate goal of all research is not objectivity, but truth”.

Author - Helene Deutsch 1884-1982, American Psychiatrist

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary aim for applied research is discovering,

interpreting, and the development of methods and systems for the advancement of

human knowledge on a wide variety of scientific matters of our world and the

universe.

50

The sequence of the flow of the research begins by identifying the topic of research.

After that a research plan is formulated describing the research method and type of

research followed by collection of data and presentation of findings.

Sequential flow of Research

Formulate the research plan

Collect data

Present findings

This chapter deals with Research Methodology of the study, which includes the

research plan, selection of study area, sampling techniques, model specification, data

collection and analytical procedure.

Research design:

This study has been descriptive qualitative . Data was collected through

survey,interview,observation.document review with structured data

collection method i.e. a formal questionnaire was prepared with questions in

a prearranged format and sequence. In addition to this informal questions

were also asked.

51

designThis study has been exploratory and descriptive. Data was

Research Technique

Questionnaire survey : The questionnaire survey method was used for data

collection to obtain data from the respondents.

Interview Technique : Oral communications were made to respondent about

their requirements. The marketing personnel or purchase personnel were

contacted with this regard to gather basic information. I have also undergone

to a detail interview with farmers and related persons.

Research Tool

Interpretation is based on percentage analysis.

Sampling

The sampling technique used in the study is cluster & convenience sampling.

Elements _ cashpor clients

Sampling units –Varanasi(sunderpur,velupur,saketnager

saraynandan,saketnager,sudamapur ,vinayka,farukhinager,etc

Period of study conducted – May-June, 2012

Sampling size – >200

Secondary data

Secondary da ta means da ta tha t a re a l ready avai lable i .e . they refer to

the da ta which have a l ready been col lec ted and analyzed by someone

e lse . When the researcher u t i l izes secondary da ta , then he has to look

in to var ious sources f rom where he can obta in them. In th is case he i s

cer ta in ly not confronted wi th the problems tha t a re usual ly associa ted

wi th the col lec t ion of or ig ina l da ta .

52

( i ) In ternet

( i i ) Data f rom cashpor off ice

Primary data

Primary da ta are those tha t a re col lec ted f resh and for the f i rs t t ime and

th is happen to be or ig ina l in charac ter . There are severa l methods of

col lec t ing pr imary da ta .

a ) Observat ion method

b) Through Quest ionnai res

c ) In terview method

d) Through schedules

The source for primary data has been the survey conducted by me with the

support of officials from cashpor.

Data Collection Stage

Stage I

Gathering the Information about economic status of cashpor clients

Information about economic status was collected . it was done by personally

interaction.

Stage-II

Gathering the information about health education and scholarhip

The personal interviews were conducted with clients about HEALTH

EDUCATION AND SCHOLARSHIP and were studied their impact on their

development.Data were also collected by secondary source.

Stage III

53

Information Handling

The collected information is handed over to our project guide, then a detail

discussion took place on the information and final decision is taken whether

to further proceed on it or not.

Stage IV

Data Analysis

The data collected about various prospect, is analyzed and a clear picture

about the programmes and their impact is obtained and it is presented to the

top management.

Scope

The research was conducted only in the few area of Varanasi district about

various aspects of microfinance and their impact on customers(women

clients). So can’t be represented at national level but can be a helpful tool

for further study in this area to students, researchers, academicians etc. This

study will also help company to improve their operation system.

54

Limitation

This project was mainly concerned with the socio-economic development of

people in Varanasi district .and it was studied in limit area of Varanasi.

Most of the social reformal activity were running or are running in

mirzapur(scholarship) and in some parts of bihar(buxer),’’healing field

foundatio n project’’.so some manipulation are based on secondary data.

Other limitations faced during the project were:

Accuracy of data depends upon the ability & willingness of the

respondents.

Unwillingness of respondents to share information.

As the primary data about customer satisfaction and customer relation’s

is collected through convenient sampling so the exact market scenario

could be different than the analysis show.

Respondents were reluctant to answer questions as they were not aware

of the importance of the project and topic In some cases education level

of respondent was a limiting case.

Secondary data are available in the scattered manner due to which

problem arises in summarization of data. Also the requirements of

customers were very much scattered in terms of size & specifications.

.

55

SWOT ANALYSIS

STRENGTH-

o large network of branches, spread across the length and breadth

of U.P and BIHAR

o Enviable track record of posting good performance

uninterruptedly year after year since its inception

o Good management system and discipline.

o Employees keen to motivate the clients efficiently.

o The technology system is good which minimizes the time

o (First MFI to use mobile system for its operation)

o good reputation among client due to its social reformer process

o Loyalty of old Customers

WEAKNESS -

o Rural branches largely lacking in infrastructure.

o High interest rate hinders the loan repayment.

o Less employee satisfaction.

o Comparatively lengthy Documentation system

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OPPURTINITIES-

o As the company deals mainly in U.P & Bihar so it has lots of

opportunity in other states also.

o Diversified business oppertunities.

o Technological innovations for better management.

o Branch model is indeed working and can boost the branch

business if followed in right way

THREATS-

o Large competition due to other MFI’s.

o Other MFI’s have professional and modern approach.

o Customer loyalty cannot be taken for granted. Company should

develop best relationship with customers and CRM at the

branches.

o MFI are largely affected by government and rbi policy.

57

DATA ANALYSIS

AND

INTERPRETATION

58

Chapter III: FINDINGS

3.1 CHANGES IN INCOME GENERATION :

This chart reveals about the changes in Income generation before & after

financed by Casphor microcredit. Before the concept came into their life, they were

used to fulfil their livelihood by daily wages or any other means. After facilitated by

microfinance , they are generating some extra income by creation of small micro-

enterprises start by their own. This process not only helps about their asset

59

accumulation but fix a habit to make timely repayment, which build their image in

groups & make an way to get again financed or with increased amount of loan.

If a new entrant is introduced in the group with no record of their performance in

the society, after getting financed by initial amount of loan, they fulfil their basic

needs after generating some income with this facility, feels very heartening with

those women. It also causes a matter of self-respect in the society, prepares a

roadmap for decision taking ability.

3.2 CHANGES IN HEALTH CONCIOUSNESS:

“Health is Wealth” but it sounds well when the people fulfil their basic needs but

after then next parameter goes for health. Before the facilitation of loan, JLG women

prefer to busy with their livelihoods, means no attraction for their health but, after

60

when women got self-employed then their health matters a lot. They prefer private

hospitals for getting good medicines. If women of the society are healthy then whole

Country will be free of diseases.

61

The response of the clients about CMC canbe said good.They were attending

meeting at regularly,paying their loan taken.Clients having more than 2 cycle of loan

disbursed were happy ,while the clients having 1 to 2 loan cycle were

satisfied.There were no response by new clients,while some were dissatisfied

because of following reasons

A . long time of meeting sedule

B. gap between two cycle of loan disbursement

C. lengthy documental process.

3. 3 Literacy level

62

Before joining the CASHPOR about 74% of clients (women) were illiterate and

were unable to use her own sign.But after joining CASHPOR and by practiced in

presence of CMC member they became literate and now use their sign instead of

thumb impression. Our society and economy cannot grow at high rate until

percentage of literacy will be high.

3.4 CHANGES IN EDUCATION LEVEL :

0

10

20

30

40

50

60

70

BeforeFinancing

AfterFinancing

Education

As we know that a poor household spend very less amount in other things except

their livelihood purposes. with the help of govt. Schemes, some percentage of

children access to the basic education. I found in my survey that school goer

children are very less reported in Govt. Schools. But, after enrolled in this facility,

(CMC TRUST) they are not only forced to attend basic education but also in Private

Schools.

63

The upliftment in these parameters shows that a basic understanding of Quality of

life is accessible to all members/holders of microfinance by which the socio-

economic changes in society are seen.

3.5 WOMEN ENTREPRENEURSHIP & EMPOWERMENT

About 42% of women(clients) are taking loan for onset of their business,thus

creating Women entrepreneurship.generally They take loan for following purposes

a.animal husbandary

b.vegetables

64

c.shop

d.tailoring

e.catering

etc.

All the above activities are making the women involved, self dependant and the

economic improvement in their family changes their way of living. Such

involvements increase the income for the family and in turn changes the

socioeconomic standards the member lead.

3.6 CHANGES IN HUMAN DEVELOPMENT INDEX :

01020304050607080

BEFOREFINANCING

AFTERFINANCING

HEALTHY LIFE

KNOWLEDGE

STANDARD OF LIVING

HDI measures the average achievement in three basic dimension of human

development.

A long and healthy life as measured by life expectancy at birth.

65

Knowledge as measured by the adult literacy rate (with two-third weight) and

combined primary, secondary, and tertiary gross enrolment ratio (with one- third

Weight age).

A decent standard of living as measured by GDP per capita.

The overall representation of graph shows about how to change the life of the

beneficiaries after financing by different MFI’s to uplift their economic status.

3.7 How cashpor clients define herself after joining

Most of the cashpor clients having more than 3 loan cycle were satisfied with the

company and its policies.They had become literate, health conscious. Many

66

clients having multiple loaning were preferring CMC as single lender and retention

rate of clients was also very impressive(>98%).

3.8 The knowledge given by cashpor

Most of the clients were satisfied with the knowledge driven by cashpor staff and

were implementing them to to uplift their life style.

Knowledge driven by cashpor

*Importance of education

*health education

*senatory,hygienic condition

67

*family planning

*insurance related

*scale of interest rate and so on………

3.9 The survey was conducted to know the reason for preference of CMC

REASON FOR PREFERENCE

INTERPRETATION. It is very important for urban poor that the loan should be easily

available.They are also attach due to liberal &relaxed policies.

68

FINDINGS-

69

FINDINGS

Awareness level of company in Varanasi district is good but not up to the mark, while

company has already completed his 13 years of establishment.

(while cmc is saturated in the northern region and have organized several social activities

still there is large clients having cmc account also have account in other SHG especially in

SKS).

Having attractive social reformer programme in comparison to other MFI..

There is a about 85-90% clients satisfied with the CMC, and the retention rate is also

very high (>95%) this thing is in favour of CMC.

Comparatively CMC is more popular among the clients of Sunderpur region.

Few of them they are dissatisfied with the criteria of providing the loan through CMC

and documentation process.

Maximum respondents stated that the strength of CMC is better than others

There is overwhelming evidence substantiating a beneficial effect on income smoothing

and increases to income. Change in household income after 3 to 4 loan cycle has shown a

significant growth.

About 95 percent of households reported that the social empowerment of women had

increased after attaining the membership in the CASHPOR over a period of time.

70

A significant improvement in control over money with respect to buying of consumer

durable assets was reported. Increase in the decision-making and control over

expenditure on children’s education.

Chapter V: RECOMMENDATIONS

There are lot of things on which the MFI’s should have to work to make it’s aim a

success. The major recommendation are given below:-

Because CMC has strong infrastructure , technically rich operation

system ,it should invade in other parts of India having poor

livelihood condition.

Company have no specially care on women entrepreneurship

development while it is exclusively based on women clients, while

all know that generally women are loyal and their loan repayment

record is good

There is need of proper awareness not only about the organization

but also their product/services; they should highlight their

product/services more. Company have launched new products such

as saving scheme, functioning of transcorp (western union money

transfer system).

Implementation of any scheme or services, it should be in such a

way that make compulsion to people to think about it.

Strike while iron is hot -- it should approach to the farmers during

the crop season; they should not wait for customer.

71

Documentation process should be flexible..

Rate of interest charged should be less so that the poor people can

give it back properly which is very high and that is 24%

+1%processing charge.

A well organized program should be done to make the people aware

about different method of using their loan to have a good economic

development.

A full fledge program of Entrepreneurship should be started to join

the remaining portion of population to financial benefits to uplift

the economic status.

QUESTIONNAIRE

1. Who use the loan

a. self b. husband c. others

2. Purpose of loaning

a. Consumption

b. Agriculture

c. Animal Husbandry

d. Income generating activities

e. Asset Building

72

f. Emergencies

g. Others

3.Do you know about all cashpor plans ,sevices.and rules

a.know all plans

b.know few plans

c.know only plan which I am using

4.The knowledge dispersed by cashpor

a.very effective

b.effective

c.less effective

d.uneffective

5.How they define herself before and after joining cashpor (in terms of social

development and economic development)

a.highly satisfied

b.satisfied

c.uneffective

d.cannot say

6.Literacy

7.Effect of Health conscious programme

73

a.effective

b.uneffetive

8.Social awareness increases

a.yes

b.no

9.Training experience

10.Development of women entrepreneurship

11. Recognition in family

12. Access to Immunization

13.Access to sanitation facility

14.. Family Income

15. Skills development

16. Voicing your concern

74

17. Nutrition awareness

18. Family Planning awareness

19. Girl Child development awareness

20. Health awareness

21. Decision making related to child centered

22. Decision making related to money centered

23. Participation in Development Programmes

24. Individual Income

25. Others (Spe.)

75

1. PERSONAL DATA

1.1 Name ……………………………………

1.2 Age – (1) < 25 (2) 26-35 (3) 36-45 (4) 46 - >

1.3 Education – (1) Illiterate (2) Literate (3) Primary

(4) Middle Class (5) High School (6) Intermediate

(7) Graduation (8) Post Graduation and above

(9) Any Professional Course & Technical

2. FAMILY DATA

2.1 Type of Family: (1) Nuclear (2) Joint (3) Extended

2.2 Total members of Family members

2.3 Who is the head of your family- (1) Husband (2) Self

3. ABOUT YOURSELF

76

3.1 Employment - (1) Employed (2) Self employed

(3) housewife (4) Labour

3.2 Approx. Income Monthly (Rs.) …………………..

3.3; Who take the decision in your family- (1) Yourself (2) Husband

(3) Both

4. HOUSING FACILITIES

4.1 Type of House- (1) Own (2) Rented (3) Others

4.2 Electricity- (1) Yes (2) No

4.3Toilet Facility- (1) Dry Latrine (2) Flush Toilet (3) Manual

4.4 Cooking Device- (1) Gas (2) Kerosene Oil (3) Wood

(4) Angeethi (5) Others

4.5 Drinking Water- (1) Piped Water (2) Hand Pump

(3) Combined Facility (4) Others

77

5. ABOUT THE ORGANIZATIONS

5.0 Group Size

5.1. How many members are in your group? (1) < – 9 (2) 11 – 15

(3) 15 – 18 (4) 18 +

5.2 Group size is (1) Stable (2) Increased (3) Decreased

5.3 When you joined the group (years)?

5.4 Who suggested to join the group? (1) Self (2) Family Members

(3) Friends/ Relatives (4) NGO’s workers

(5) Other members of the Group

5.5 What is your position in Group? (1) Ordinary Member (2) Active Member

(3) group leader

6.Meetings

78

6.1 Frequency of meeting- (1) Weekly

(2) Monthly

6.2 How many members attend the meeting? (1) All (2) Few

(3) Some member

6.3 Who take the decision in the meeting- (1) All members (2) group l

(3) Link Worker (4) Mixed

6.4 Training and Experience

If Yes,

Type of Training No. of Participations Usefulness Yes/ No

6.5 Work shop

QUESTIONNAIRE FOR DEVELOPMENT FUNCTIONARIES

1.0 General Information

2. Age (Years)

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3. How many branches are in the area?

4. What are the main problems related to access of poor to micro finance?

(1) (2) (3) (4)

6.0 What are the main problems in promotion of micro enterprises?

(1) (2) (3) (4)

8.0 Your suggestions to improve functioning of JLG’s

(1) (2) (3) (4)

9.0 Your suggestions for capacity building of JLG’s

(1) (2) (3) (4)

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AbbreviationsBM Branch Manager

CGT Compulsory Group Training

CHI Cashpor Housing Index

EIR Effective Interest Rate

GNI Gross National Income

GRT Group Recognition Test

HDI Human Development Index

HR Human Resource

IA Internal Audit

MP Medium Poor (according to CHI)

NPL National Poverty Line

OBC Other Backward Caste

OSS Operating Self Sufficiency

PAR Portfolio at Risk

PPI Progress out of Poverty Index

SC Scheduled Caste

ST Scheduled Tribe

UP Uttar Pradesh

MD Managing Director

MFI Microfinance Institution

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MIS Management Information System

MNREGA Mahatma Gandhi National Rural

Employment Guarantee Act

URN Unique Registration Number

VP Very Poor (according to CHI)

WSWC Women Staff Welfare Committee

Employment Guarantee Act

URN Unique Registration Number

VP Very Poor (according to CHI)

WSWC Women Staff Welfare Committee

REFERENCES:

Fuglesang and D. Chandler, Participation as a Process - what we can learn from Grameen Bank, NORAD, Oslo, 1986.

ACCION International and The Calmeadow Foundation. 1988. An Operational Guide for M icro- Enterprise Projects. Toronto: Calmeadow.

Ackerley, B. A. (1995). " Testing the tools of development: credit programmes, loan involvement and women's empowerment ." IDS Bulletin 26(3).

Arunachalam, Jaya. 1988. "Credit Needs of Women Workers in the informal Sector, Case Study of Working Women's Forum (India)." Mimeo. Mylapore.

Neera Burra, Joy Deshmukh-Ranadive and Ranjani K.Murthy, 2005, ‘Micro-Credit, Poverty and Empowerment: Linking the triad’ Sage Publications.

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K.G.Karmakar, 1999, ‘Rural Credit and Self-Help Groups: Micro-finance needs and concepts in India’, Sage Publications

‘Microfinance: Banking for the poor and not poor banking’, The Hindu Business Line, Mar 15, 2005.

Robinson, Marguerite. 2001. The Microfinance Revolution: Sustainable Finance for the Poor. World Bank. Washington.

Kropp, Dr. Erhard W. & Suran, Dr. B.S., Linking Banks and (Financial) Self Help Groups in India – An Assessment, November 2002

Reserve Bank of India, Report of the Internal Group to Examine Issues Relating to Rural Credit and Microfinance, July 2005

Parvin Razia, M, (2005), “Empowerment of Women”: Strategies and systems for Gender Justice, Dominant Publishers and Distributors, New Delhi.

Bhatt, N. and Tang, S. Y. (1998b). Group-based microfinance and economic development. In T. Liou (ed.), Handbook of economic development (pp. 115-138). New York, Marcel Dekker.

Bhatt, N. and Tang, S. Y. (forthcoming). Delivering microfinance in developing countries: controversies and policy perspectives. Policy Studies Journal.

Viswanath, Vanita. 1989. Extending Credit to Rural Women: NGO Models from South India. World Bank Working Paper No. 184. Washington, DC: World Bank.

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Some photographs of field visit in Sunderpur branch

collection

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Collection + health tips

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Collection in sukulpura

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Caspor ‘s employee with me in sunderpur branch

“THANK YOU FOR YOUR CO-OPERATION”

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