Social Impact Assessment of Microfinance Programmes - weman

these, as many as 7,301 units are closed and 2,207 units are open, which reflects on
OCT’s resolve to keep its client base small and manageable. This portfolio is balanced by
replication of its microcredit programme by supporting NGOs/CBOs, where
institutionalization becomes the core focus rather than operational expansion. OCT is
working with 47 NGOs/CBOs where a total of Rs. 286,600,604 has been disbursed to
25,606 units till August 2006. Out of this 13,926 units are closed while 11,680 are open
in 433 areas and villages.
Figure 4.1: Total Units Served by OCT
Table 4.1: NGOs supported by OCT
Sindh Punjab NWFP Balochistan Total
Number of NGO/CBOS 31 14 1 1 47
Number of Areas covered 255 153 3 12 421
4.1.3 Organizational Structure
The project area of Orangi with a population of one million is divided into four zones. A
supervisor is responsible for each zone whereas five account officers manage the
accounting, and monthly printouts of account sheets help supervisors to check defaults.
OCT management was reorganized in April 1996 where the post of Joint Director was
abolished. The sections were: loans, accounts, recovery and training. The Vice-Chairman
of OCT became the coordinator. The trustees are the Chairman and Vice-Chairman. The
organizational culture is very informal which allows the clients to identify with OCT staff
and strengthen their relationship.
4.1.4 Programmatic Portfolio
OPP-OCT is providing microcredit to existing micro enterprises at bank rate of interest
without collateral ranging from Rs. 2,000 to 50,000 with simple procedures and
documentation. There are eight different types of products that are offered by OCT to its
Orangi and non-Orangi clients. The details are as follows:
• Loans to Schools: There are over 750 schools in Orangi, two-thirds of which are
unsustainable with 50-500 students charging very low fees. The quality of
education as well as the infrastructural conditions of such schools is dilapidated.
Therefore, two types of credit have been introduced: loans with service charge for
physical upgradation, and teacher’s training to mid and higher level schools.
There are 665 schools which have received loans amounting to Rs. 19,352,981.
Loans without service charges are provided to 57 small schools totalling Rs.
1,054,710 for physical up-gradation. Six units are open and the recovered amount
is Rs. 1,001,610.
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