Social Impact Assessment of Microfinance Programmes - weman

influentials and people understand the implications. Besides a complete record of all
loans is kept by the CO president and the NRSP staff.’
(Male FGD, Attock District, Punjab)
The majority of the participants, including women, did not have any issues with the
NRSP rate of interest or the entire recovery process. Borrowers were aware that the
NRSP mark-up was comparatively much lower than the other credit schemes available to
them, therefore, this was the best available option for them. The recovery process was
termed as quite flexible and borrowers did not feel under pressure to repay on an exact
time and date. The group dynamics permitted some breathing space in case of an inability
to pay on the designated day. However, there were no defaulters reported by the group
participants within their COs or loan groups. People paid on time and in many cases a
few days before the designated day for recoveries. No dropout cases were mentioned in
any of the groups. The NRSP credit staff also endorsed this.
Prior to NRSP, in case of need we would have to borrow from relatives or friends which
becomes cumbersome as one feels a bit under pressure, but now with this facility we deal
with an organization, which does make a difference we deal not with an individual but an
institution.
(Female FGD Participant, Attock District, Punjab)
Usually, we manage to collect our instalments a few days prior to the exact date as we
know that we will have to pay a fine in case of late submission. We manage even if we
need to borrow for the instalment.
(Female FGD Participant, Talagang District, Punjab)
A noticeable number of participants were quite honest in admitting that many times the
loan from NRSP was utilized for some other purpose other than the real reason for the
credit. But it did not make a difference to them as long as they were able to pay back on
time. The Organization also seemed to ignore such issues. There are two probable
reasons for this deviation both on part of the borrower and the programme. Firstly, the
loan amounts are not that large and the borrower can make up through other means;
secondly, most of the borrowers repeat the credit process and can gradually compensate
for the proposed credit activity.
There were several participants who reported taking two to three loans, which had a
positive impact on their household incomes. First time borrowers mentioned little
financial impact because the amount for first time borrowers was usually between Rs.
5,000 to 10,000 only. Most of the loans in the region had been taken for livestock and
agriculture purposes. Women, especially, found livestock loans very effective and were
able to make a profit of Rs. 8,000 to 10,000 per month through a buffalo or a cow.
The group savings in the COs and loan groups was a relatively new concept for the local
communities. Savings are introduced in the initial CO formation process and is
mandatory later according to the financial situation of the individual members, but CO
members mostly continue to put in some savings every month as people take it as an
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