Social Impact Assessment of Microfinance Programmes - weman

for SBF, two in Lahore and one in Kasur and plan to open another two in the next six
months. By September 2006, 232 SBF loans had been given out with an ALS of
Rs.38,444 and total disbursements of almost Rs.9 million.
3.1.4.4 Livestock Finance (LVF)
This loan is for clients who already have a livestock business and it is to enable them to
further invest in livestock and enhance their income by selling dairy products. Individuals
who apply for this loan must have taken the productive loan first. The appraisal
procedure and the documents required are the same as that of the SBF. The loan size
ranges from Rs.30-70,000 with a 20 percent interest rate. The loan is given to either men
or women in groups of 5-10. The instalments have to be paid fortnightly and each
member in the group should have a separate guarantor. A loan processing fee of Rs.50
and 2 percent insurance premium is charged.
Asasah had given out 34 Livestock loans till September 2006 with an ALS of Rs.40,147.
Approximately Rs.1.4 million has been disbursed.
3.1.4.5 Freedom Loan
This loan is for people who have borrowed from moneylenders and are paying exorbitant
interest rates and are trapped in a vicious cycle and unable to repay the principle. The
amount of the loan is decided after scrutinizing the individual and his case and a
personalized product is created. The interest charged is 20 percent and the loan is
approved by the Head Office. This is not a mainstream product and is only offered on a
case-to-case basis.
3.1.4.6 Micro Leasing
Asasah introduced a micro leasing facility to its members for leasing equipment,
machinery or any other operational tool they may need to enhance their income. This
product was being offered in collaboration with Orix leasing. The loan range was from
Rs.40-300,000 and for equipment the interest rate charged was 16 percent while for
vehicles it was 18 percent. A processing fee of 1 percent was also charged and the
product was offered in groups of 5 to 8 people or individually, and had to be repaid in 2
to 3 years. The documents required were ownership or rent agreement papers for the
business/production location, utility bills for the last 3 months and Bank Statements for
the past 6 months. The applicant had to pay 10 percent of the leased asset in advance and
had to provide two guarantors.
Asasah has revamped this product and will offer it independently and not in collaboration
with Orix Leasing. Offering the product with Orix was leading to complications and
Asasah has researched the market again and will pilot it soon with new features.
3.1.4.7 Micro Saving
Asasah asserts that saving is a basic tool for poverty alleviation and helps in building
confidence of members and provides ‘the feel good factor’, which is essential for
developing a positive mindset for risk takers. Furthermore, they say microfinance
research indicates that saving is an essential measure for meeting emergencies and
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