Social Impact Assessment of Microfinance Programmes - weman

usiness address, attest to experience of at least 3 years of managing a business and
provide their ID cards and signatures of spouse/family.
The BSL is marketed through flyers given out in markets and through the old Kashf
branches. The LOs for BSL require a higher qualification than the regular LOs as the loan
appraisal process is more rigorous and includes detailed financial analysis and projections
of the client’s business. One guarantor is also required who gives an assurance about the
character of the applicant and also pledges to pay the loan in case the client defaults.
The current disbursements of the BSL are 53 million and a total of 1,413 loans have been
given out. The average loan size is Rs.37,711. For individual lending the target for 2007
is to open 8 new branches, with 2 in Karachi and one in Sialkot and give out 15,000 new
loans. Currently, Kashf has 6 branches for Individual loans with 3 in Lahore, 2 in
Faislabad and 1 in Gujranwala, and has given out 2000 loans.
8.1.4.4 Savings
Any customer availing a GL can deposit savings of any amount (in denominations of Rs
10) with the branch manager. This product acts like a savings account. On every bimonthly
meeting, the Loan Officer gives an account of the amount of savings each
customer has made to date. 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
clients’ amounts to Rs.5.6 million with an average deposit size of Rs.53.
The average deposit size has been falling, even though savings would be expected to
cater for emergencies and investment for lifetime events. Research by Kashf has revealed
that they prefer the RoSCA system for improving their access to sizeable amounts of
money and that rather than depending on savings for unforeseen expenditures they would
rather resort to credit facilities. Small deposits of savings have entailed enhanced
transaction costs; for clients these amounts to costs associated with time management,
‘nuisance’ value of meetings, etc. For the organization the operational cost of mobilizing
small deposits and maintaining them at commercial financial institutions has proved to be
substantial. Consequently, this product is not being promoted or marketed aggressively
at present, but has been preserved as an option for clients.
8.1.4.5 Insurance
It is obligatory upon all Kashf clients to take insurance. Insurance charges are 1.5 percent
of the loan amount (General Loan) and are taken up-front when the loan is disbursed.
This insurance facility applies in case of accidental or natural death of the client. Its
benefit includes the writing-off of the outstanding loan amount and the family receives
Rs.7,500 to cover for funeral expenses.
8.1.4.6 Gender Empowerment and Social Advocacy (GESA)
In accordance with Kashf’s mandate for social empowerment, GESA is a part of the
consolidated approach towards capacity building. The idea behind the social aspect of the
programme is to build social capital among clients through greater awareness of
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