Social Impact Assessment of Microfinance Programmes - weman

• Education levels varied significantly – male participants were at least matriculate or
intermediate pass. 5 females were also middle or matric pass while 4 of them were
primary drop-outs.
• The group had a mix of clients ranging from those in their fourth or fifth loan cycle
and those who were just one month old clients.
Involvement in Microcredit Programme – reasons and factors
• Income generation or enhancement was identified as the key reason for which all
participants engaged in SAFWCO’s Credit and Enterprise Development Programme
(CED) across urban and rural areas or gender.
• Most female clients took loans for livestock and small loans for embroidery and
handicrafts. Male clients applied for loans to set up their shops or retail business of
milk. Demand for dairy products is higher in that area because of the shrine and
people flock there to pay their homage.
• In case of urban clients, both males and females, another strong reason for applying
for loans is the raising inflation rates which continue to shrink their income and bring
business to a static position.
Loan Repayments and Social Collateral
• Almost all clients mentioned that instalments and their process were very reasonable
and they could easily pay them off. They stated that loans were basically utilized to
purchase more raw material or livestock which gives immediate boost to the income
level. Therefore, they didn’t face any problems at all.
• Female clients elaborated that from the increased income, they not only pay off the
debts but also save considerable amounts. So for the next round of investment, they
add up their saving in the amount received on credit and thus, can take more
ambitious business moves. One participant stated that she was able to buy 3 buffalos
and 5 goats by utilizing the loan and savings strategically. She currently saves up
almost Rs. 120 on selling 5 litres of milk at an average.
• Clients, both men and women, receiving loans for handicraft didn’t seem to be
equally strategic. SAFWCO staff explained that cultural diversity comes into play.
The ethnic groups or castes running the handicrafts business as well as the old
settlers, do not have a business approach. And thus, they feel content with their basic
living needs being met.
Impact on Quality of Life and Social Consciousness
• A direct correlation between taking microcredit and quality of life and enhanced
awareness, cannot be drawn. Partly, the overall community development initiatives,
accessible media and proximity to city centre by SAFWCO and other organizations,
play a role, as does proximity to Hyderabad centre. Also, the clients did not associate
any change in social status, quality of life, or greater consciousness of their rights and
responsibilities towards their family or society at large. Education, health and family
planning were things which they were significantly aware about; however, the
practices were more culturally driven than knowledge based.
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