Social Impact Assessment of Microfinance Programmes - weman

A total of three focus group discussions were conducted in two Kashf programme
localities in Lahore. These discussions were organized according to the client categories,
according to which one FGD was conducted with the second loan cycle category in Kot
Lakpat Branch, while two were held with fourth and sixth cycle categories of clients in
Chungee Branch area. Two groups had 7 to 9 participants, while the third had more than
10 participants.
Both the localities were highly populated with the majority belonging to the low to lower
middle incomes groups. According to the groups’ participants, people in these areas
indulged mostly in small enterprise development, while many were also employed in the
industrial and service sectors as labourers and support staff.
Client Profile
Kashf gives loans for household entrepreneurship, but only through female clients. If 25
women from the same locality are able to form a group and are prepared to act as
guarantors for one another, they are eligible to become Kashf clients. Most of the women
in the three groups were between the age brackets of 30 to 45 years, with low education
levels, and monthly average incomes ranging from Rs. 4,000-35,000.
Similar to other microcredit clients of other programmes, women in Kashf areas were not
very aware of formal financial institutions or such services. Although, every participant
in both localities mentioned banks as a major source of credit, but none reported having
any interaction with any bank either as an independent account holder or a borrower.
Women felt that bank processes were too tedious for them to handle and family male
members did not have that much time to spare due to their busy work schedules.
‘We are mostly illiterate women and cannot handle all the complications that are
involved with banks. Besides, I just don’t know how to go about accessing a loan from a
bank. how to get there, who to talk to and then whether I am taking the right decision in
availing a bank loan; these are a few of the questions which make me nervous’.
(FGD Participant, Kot Lakpat, Lahore)
Life cycle events were mostly managed through personal loans from neighbours and
family, which were gradually paid off. In addition, all women said that they had a habit
of saving whatever was possible, even prior to Kashf interventions, which always helped
in times of immediate need. However, the Kashf savings mechanism has definitely
institutionalized the savings concept as now it is mandatory for them to contribute some
amount in the group savings, which is another additional source of finances for them.
Savings were also utilized for paying utility bills and other outstanding dues.
The committee system was not very common among the participants as most could not
afford to spare yet another amount from within their household budgets. Before Kashf
interventions, some women use to participate in the committee system, but don’t have the
need to do so.
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