Social Impact Assessment of Microfinance Programmes - weman

the learning centre has been set up. At the centre not only are new recruits trained, but
previous staff are also given trainings on various issues. Due to the high client attrition
rate of 2005, customer care has become a serious issue and specific training on this is
held. Furthermore, Kashf undertakes regular customer satisfaction surveys and focus
groups so that it is aware of the changing preferences of clients.
In 2006, Kashf completed the automation of all its branches which was a major goal for
the year. However, integration of finance and HR with the operations side is still to be
completed. Kashf reports that the efficiency gains from the automation have been
significant, consequently the caseload for LOs have been increased to 650, which is very
high according to the industry standards.
Kashf transfers centres among LOs on an annual basis. Generally the centre is passed on
to the pair LO; however, problematic centres might be passed on to a new LO. This is
done to prevent fraud or collusion of any form. The organization tries to relocate branch
staff to counter this risk.
Recently, the organizational structure was strengthened and two new positions of Chief
Executive Officer and Chief Financial Officer were introduced. This was done in an
attempt to strengthen and develop leadership within Kashf. Kashf also has comprehensive
documentation of all its operations and processes. There are manuals for financial risk
management, credit risk management, human resource policy manual, a treasury manual
and an operations manual.
8.1.5.3 New Products
To keep up with the changing needs of its clients, Kashf is developing new products. The
latest product in the pilot stage is the Home Improvement Loan. Research for its design
was completed in the summer of 2005 and focused on the demand for a housing product.
The aspects evaluated were the target market’s capacity to carry additional debt, and any
risks posed by a lack of property rights and mobility. The results indicated that housing
was a priority for many of Kashf’s clients and 84 percent of the surveyed, demanded a
home improvement loan. The research also indicated that housing was the leading use for
which households dedicated their savings. The loan size ranges from Rs.50-70,000 and
has a 4 year term with 15 percent rate of interest. The accompanying documents required
include photocopies of titles of the residence, and the loan is given to a group of 3-5
women. The loan cannot be used for new construction; it is only for renovation or adding
a new room/bathroom. The pilot phase of the Home Improvement Loan (HIL) is running
in two of Kashf’s branches: Ravi Rayon and Jorah Pull. The response to this new product
is very encouraging and the pilot phase is being monitored to streamline all operational
and policy features
Two more products are in the research/planning phase. One is a loan to treat Hepatitis C
and its feasibility is currently under study. In Lahore the infection rates are alarming with
at least 13 to 16 percent of the city’s population infected with the virus. The motivation
behind this loan is that the majority of the cases in Pakistan can be cured with
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