Social Impact Assessment of Microfinance Programmes - weman

Everyone knew about bank loans due to the aggressive marketing of many banks for
agricultural and other credits. But again, the local population especially the women, did
not find the process client-friendly and felt that the process of acquiring a loan was too
tedious. Furthermore, many participants including females said that the bank interest
rates were too high. People also felt intimidated by the general environment in the banks
and were more comfortable with community-based schemes like NRSP. The regular
interaction with the loan officers and programme field workers added to the comfort level
of the communities in addition to accessibility through the NRSP village branches in each
programme union council.
‘The Bank loan’s mark-up is very high. You take a small amount from the bank as a loan
and have to repay almost double. While the process of return is also very lengthy and
tedious.’
(Male FGD participant, Talagang District, Punjab)
The local concept of savings was mostly through the committee system. The women felt
that the only way they could manage any significant savings was by becoming a part of
community committee groups, otherwise people were unable to save anything. Savings, if
possible, were always kept at home as the amount seldom exceeded the level that
required any banking services or safekeeping.
‘The rich do not need to save, while the poor don’t have enough to save. We started to
save only after getting introduced to NRSP.’
(Male FGD Participant, Talagang District, Punjab)
The main assets for people in the area were livestock followed by gold jewellery. It was
mentioned that people kept livestock for emergency purposes as it could be easily sold
off in the market with immediate cash returns. For females, jewellery was not only a
personal desire, but also perceived as a financial security, which could be disposed of at
the time of need. Property of course was understood as a major asset, but only the well
off could afford it.
Clients’ Feedback
There was a general sense of satisfaction amongst all the group participants regarding the
credit services of NRSP. People were of the view that this scheme provided them support
to improve their socio-economic conditions in a manageable way. Males and females
alike had a comprehensive understanding of the entire appraisal and loan process and
approved of the social and technical appraisal approach. The pre-group formation or
approval of a loan resolution through the CO authenticated the concept of social
collateral. As a result, borrowers were clear about the repayment procedures and interest
rates prior to applying for a loan.
‘It is very easy to acquire a loan from NRSP and it is equally easy to repay it. There are
small chances that someone will not pay back, because the CO members are community
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