Social Impact Assessment of Microfinance Programmes - weman

clients by 2010. Over the years Kashf has received many awards for its
performance.
• Kashf started with micro loans for women; however, with the changing needs of
the market it has also started offering larger individual loans for micro
entrepreneurs. In the past year Kashf has rapidly expanded its branch network and
from 35 branches at the end of 2005, it has increased it to 70 branches at the end
of 2006, and they are planning to open 50 more branches in 2007.
• Kashf started its microfinance programme in Lahore, however, now it has
expanded to Kasur, Gujranwala, Faislabad, Karachi, Khushab and their
surrounding areas. Most of these branches are for the General Loan category,
though six have a specialized section for the Individual Loan category.
• Kashf’s group lending programme is a Grameen Replication, adopting the classic
Grameen Bank model with some adaptations. Kashf provides one basic loan,
called the General Loan (GL), for 12 months at a flat interest rate of 20 percent
per annum. All members are women and each borrower belongs to a group of five
borrowers, and together five of these groups form one centre. Members repay
their loans in bi-weekly centre meetings attended by Kashf loan officers. There is
no collateral, therefore, the centre takes collective responsibility for loan
repayment.
• Kashf lends to married, divorced or widowed female clients. Divorced and
widowed clients are encouraged in the Group lending approach so that they can
earn for themselves by starting a business or by increasing their current business
portfolio.
• From the pool of potential clients, individuals who fall within the Kashf poverty
criteria of household income between Rs.4-10,000, have a low asset base and high
dependency ratio, are encouraged to organize themselves into groups and centres.
• The purpose of the General Loan (GL) is to invest in income generating activities
and can be used for an existing business or a new one. The loan size begins with
Rs.10,000 and has a ceiling of Rs.25,000, the loan is repayable over 24
instalments in the course of 1 year at a service charge of 20 percent. Successive
loan cycles entitle clients to an accretion in loan amounts of up to Rs.4,000
depending on their absorptive capacity.
• The GL comprises about 87 percent of the product wise share. According to
Kashf this loan is utilized both by women who aspire to establish a small business
for themselves or others who pass it on to their husbands/sons to diversify
household income sources.
• The Emergency Loan (EL) is a service that is available to existing Kashf clients,
who are already availing a general loan. The Business Sarmaya loan is intended
for the ‘missing middle’ of the market, i.e., both men and women with running
businesses who demonstrate a financial need for working capital and/or fixed
assets. Small entrepreneurs are provided with access to capital in addition to
advisory support for their respective ongoing businesses that can include trade,
production and services.
• Savings is a completely voluntary product. It is a service that the customers can
decide not to avail at all. Despite the fact that it is a voluntary act and there is no
interest paid by Kashf on the amount saved, the amount of savings held by
xiv