BANARAS HINDU UNIVERSITY

SUMMER INTERNSHIP REPORT 2012

Topic:- To study the role of Cashpor micro Credit in the SocioEconomic Development of the people in Varanasi District

Under the supervision of

Mr. suresh singh (Branch manager) Cashpor Micro Credit Sunderpur (Varanasi)

Submitted by:
VINAY KUMAR MBA(Agribusiness) 3rd Sem. Enrolement no-340854
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Session(2011-2013)

AcknowledgementI convey my sincere gratitude to Prof. S.K.Singh (Head & Dean), Faculty of management studies, B.H.U for providing me an opportunity to undergo this summer internship project. I am also grateful to Dr. HP Mathur, Assistant professor, faculty of management studies, BHU, Varanasi, for her consistent support and care. I would like to express my sincere thanks to Mrs. Deepti Nager, HRD of CMC, Varanasi for giving me a chance to do my summer internship project in CASHPOR MICRO CREDIT,
VARANASI. It was their sincere permission due to which I became to perform to such a

challenging project. I am highly obliged to Mr. Suresh kumar singh Branch manager, Sunderpur branch, CASHPOR MICRO CREDIT. For providing me his valuable guidelines, support and for providing me an opportunity to undertake this project. This project was a great opportunity for me to get a first hand experience of professional culture that exists in an organization, about the market conditions that exists for these products and qualities required to work under various conditions. My gratitude also goes to my mentors Mr. DM Singh for their valuable suggestions. I would also like to thank all the members of Sunderpur, khojwa , Bajardiha, sukulpura, Bhelupur, Gauriganj, saket nagar colony, Nariya, Madanpura, Nagwa, sukulpura, Bajardiha, sonvarsha, jakkha, sarainanda, Badi gaibi, Nawabganj, shiwala, jagjiwan tola, etc branch for their support and generous cooperation. I cant forget expressing my thanks to all the respondents, because without their help my project will remain incomplete. VINAY KUMAR
MBA (AGRI-BUSINESS) 2

III-SEM , FMS, BHU

Cashpor stands for Credit and Savings for the Hardcore Poor
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TABLE OF CONTENTS
1 Executive Summary 2 Microfinance : Overview : What is microfinance : History : Need of microfinance : Features of microfinance : Sources of rural credit : Different models of microfinance 3 About Cashpor Micro Credit : History : Vision and Mission : Organizational Structure : Governance : Financials : Product & Services 4 Introduction: : socio-economic development : About the Project : Objective 5 Research Methodology 6 Swot Analysis 7 Data Analysis 8 Findings 9 Suggestions
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10 List of Abbreviations 11 Bibliography 12 Questionnaire

"If we can come up with a system which allows everybody access to credit while ensuring excellent repayment - I can give you a guarantee that poverty will not last long, - Prof. Dr. Muhammad Yunus."
Executive Summary
The present study assess the role of Cashpor Micro Credit in Socioeconomic development of people in varanasi .The study was conducted in Sunderpur branch of Varanasi district. The over all finding of the study suggest that micro credit and other social activity of CMC has significantly improved the access to financial services of urban poors and had considerable positive impact on the socio-economic condition and reduction of poverty of cashpors clientsand their household. Because CMC is exclusively based on women, it also helps in women empowerment, gender equality other than financial support. It has increased the opportunities of women entrepreneurship.The social activity (health
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education, medical camp, scholarship programme, and other knowledge about insurance, scale of interest) running by CMC has also great impact on cashpors client and their life style have improved.

MAJOR FINDINGS
CMC is exclusively based on women members. Micro loans are disbursed only to those members who are below poverty level(BPL) according to CASHPOR HOUSING INDEX(CHI) Function as JLG Model(joint liabilities group) Change in household income after 3 to 4 loan cycle has shown a significant growth. About 95 percent of households reported that the social empowerment of women had increased after attaining the membership in the CASHPOR over a period of time. About 95 percent of households reported that the social empowerment of women had increased after attaining the membership in the CASHPOR over a period of time. A significant improvement in control over money with respect to buying of consumer durable assets was reported. Increase in the decision-making and control over expenditure on childrens education.

What is Microfinance?
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services.

More broadly, it is a movement whose objective is "a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers." Those who promote microfinance generally believe that such access will help poor people out of poverty.

Meaning
A type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Ultimately, the goal of microfinance is to give low income people an opportunity to become self-sufficient by providing a means of saving money, borrowing money and insurance. As these financial services usually involve small amounts of money small loans, small savings, etc. - the term "microfinance" helps to differentiate these services from those which formal banks provide. Why are they small? Someone who doesn't have a lot of money isn't likely to want or be able to take out a $50,000 loan, or be able to open a savings account with an opening balance of $1,000. It's easy to

imagine poor people don't need financial services, but they are using these services already, although they might look a little different.

HISTORY
Microcredit has come a long way. Professor Yunus, Managing Director of Grameen Bank, promoted it in 1974 in Jobra, a village in Chittagong of Bangladesh, and it has spread all over the world. The strength of microcredit lie in its ability to organize idle women into a productive workforce with their proven creditworthiness. It is believed that 25 million people worldwide are now using microcredit to undertake income-generating or self-employment activities; of these, 90% are women. Microcredit has not only made women more productive, it has also empowered them. As a result women are now integrated into socio-economic activities, contributing to family income and decision making and exercising more control over their fertility, which allows them to take better care of their children.

The advent of micro-finance has proven to be one of the most significant contributors to poverty alleviation that the development community has known. From its inception in the latter part of the 20th century we have observed micro-finance grow globally ushering in new possibilities for improving lives and creating economic growth. Microfinance has shown itself to be dynamic, providing a rich range of products and services that can be adapted to specific environments around the rural India. Today's micro-finance community has brought forth a wealth of creative and innovative ideas, not least of which are the newly emerging micro-insurance services. The introduction of micro-insurance under the umbrella of micro-finance has been no less than a major milestone in product development. Though we remain at the cutting-edge of this field, we are convinced that if micro-insurance services are indeed realized, it would finally afford those most vulnerable some protection from their greatest threats. Micro financing is the provision of financial services to poor and low income households without access to formal financial institutions. As defined by the Asian Development Bank (ADB), it is - A provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and their micro9

enterprises. In the late 90s, numerous agencies involved in microfinancing operations in India started adding other financial services, including micro-insurance to its micro-finance operations. The situation of micro-financing in India has thereby improved with certain steps taken by the government and now, the private players, banks etc as well. Hence was adopted the concept of micro-credit in India. Success stories in neighboring countries, like Grameen Bank in Bangladesh, Bank of Rakiat in Indonesia, Commercial & Industrial Bank in Philippines etc, gave further boost tothe concept in India in the 1980s. India thus adopted the similar model of extending credit to the poorest sector and took a no. of steps to promote micro-financing in the country. Empowerment implies expansion of assets and capabilities of people to influence control and hold accountable institution that affects their lives (World Bank Resource Book).Empowerment is the process of enabling or authorizing an individual to think, behave, take action and control work in an autonomous way. It is the state of feelings of selfempowered to take control of ones own destiny. It includes both controls over resources (Physical, Human, Intellectual and Financial) and over ideology (Belief, values and attitudes) (Batliwala, 1994).

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Empowerment can be viewed as a means of creating a social environment in which one can take decisions and make choice either individually or collectively for social transformation. It strengthens innate ability by way of acquiring knowledge power and experience. Empowerment is a multi-dimensional social process that helps people gain control over their own lives communities and in their society, by acting on issues that they define as important. Empowerment occurs within sociological psychological economic spheres and at various levels, such as individual, group and community and challenges our assumptions about status quo, asymmetrical power relationship and social dynamics. Empowering women puts the spotlight on education and employment which are an essential element to sustainable development.

DIFFRENT MODELS OF MICROFINANCE

This model involves the SHGs and individuals financed directly by the banks viz., Commercial Banks (Public Sector and Private Sector), Regional Rural Banks (RRBs) and Cooperative Banks.

THE DIRECT-ACCESS-BANK LED MODEL or SHG - BANK LINKAGE MODEL

THE INDIRECT CHANNEL PARTNERSHIP or MFI - BANK LINKAGE MODEL This model covers financing of Micro Finance Institutions (MFIs) by banking agencies for on-lending to SHGs and other small borrowers covered under microfinance sector 11

BANK SHG BANK LINKAGE MODEL Branch NGO SHG

BANK MFI BANK LINKAGE MODEL MFIs

Ind./SHG/JLG

JLG (JOINT LIABILITY GROUP) MODE

Why Microfinance Can Change the Way the World Works

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History-

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A) PROVIDES TRAINING, TECHNIQUES & MICRO CREDIT FACILITIES TO RURAL & POOR WOMEN AND OTHER MICRO CREDIT INSTITUTIONS
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ACCORDING TO GRAMEEN BANK MODEL (BANGLADESH) WITH THE HELP OF FOLLOWING INSTITUTIONS. 1. CASHPOR FINANCIAL & TECHNICAL SERVICES Ltd. 2. CASHPOR MICRO CREDIT 3. CASHPOR FINANCIAL SERVICES Ltd. B) CREATES FAVOURABLE & IDEAL CLIMATE FOR MICRO FINANCE INSTITUTIONS THROUGH FOLLOWING SOCIAL WELFARE PROGRAMS : 1. PROVIDES SCHOLARSHIP AWARD FOR CHILDREN OF POOR CLIENTS. 2. PROVIDES HEALTH FACILITIES THROUGH HEALTH CAMP. 3. PROVIDES TRAINING & TECHNIQUE OF MALBERRY PLANTATION & SERICULTURE 4. PROVIDES LIVESTOCK MANAGEMENT TRAINING. CASHPOR Financial and Technical Services (CFTS) was started in

September 1996 as a financial Company. The purpose of this Company was to give access to financial services in the form of small amounts of credit, to poor rural women, as an alternative to the existing money lenders which were known for charging usurious rates of interest, as well as perpetuating a never ending cycle of debt. As the Company began to expand, it became necessary to move to a different legal form, and so CASHPOR Micro Credit (CMC) was started in Dec. 2002 as a subsidiary Section become 25 company in the of CFTS. CASHPOR India microfinance sector, has as a

subsequently

known

microfinance provider that devotes its attention exclusively to the provision of micro-credit to the poorest of the poor, through its unique

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targeting approach which filters the poorest clients and lends to them.

Cashpor is one of the largest microfinanceinstitutions (MFIs) in northern India,currently serving over 470,000 womenthrough 269 branches. Based in the city of Varanasi, Uttar Pradesh, Cashpor is committed to identifying and motivatingpoor women in rural areas, through delivering financial services in a timely ,honest and efficient manner.
CASHPOR India started its operations in mid 1997 by disbursing its first loan on 15thSeptember in Mirzapur District of Uttar Pradesh. The entity was CASHPOR Financial and Technical Services (CFTS) Ltd, working with an objective to reduce poverty in eastern U.P. and western Bihar through the provision of Micro finance services to the rural poor women timely, honestly and efficiently. Its first six branches were set up in July 1997, to cover the southern part, which was poorer part of the
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district. Its next six branches were opened in October 1998, to cover rest of the District. Its original branches having acute poverty level were finding it difficult to become financially viable, because of little demand of loan amount, low population density and frequent casualties in the clients family leading to high portfolio at risk. The lack of market infrastructure limited the avenues of profitable enterprise for the poor.

Performance indicators
Active borrowers Outstanding loan portfolio (A$000) Number of branches Operational sustainability PAR** > 30 days

Dec 2010
470,893 57,569 269 * 110% 0.42%

1.1

PROBLEM STATEMENT :

Nowadays, Microfinance is treated to be a tool for poverty alleviation & it can change the lives of the poor. There may not be a quantum jump
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in the income but it is possible still to ensure a reasonable rise in the income of the poor & the economic conditions can spill over effectively in improving other parameters of a better quality of life. The changed focus on income generation activities and improvement in the quality of life of the people through Self Help Groups has provided a new thought for economic development of the area of the study in comparison to the trickle down theory but its viability, impact and sustainability is still to be confirmed. The attempt of the study is to find out reliability of this approach on improvement in the quality of life the people or to see if another zero in the name of development has replaced a zero. The study is to determine the efficacy of micro-lending operation initiated by the CASHPOR in the Mirzapur District and to see that to what extent these micro-credit operation are efficient to combat the problem of poverty in Indian context which is prevailing in India for so many years despite of valiant efforts of the government to eradicate it since last 57 years with no fruitful results. If initiatives of micro-credit can enhance the quality of life of the people living below poverty line than certainly new doors are open in front of the policy makers of the country to adopt a new insight for the problem of eradication of poverty
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and new efficient policy based on micro-credit can be implemented in the country as there is no doubt that government can reach the people to large scale compared to the NGOs and other voluntary organisation.

1.2

MARKET POTENTIAL & STRATEGY :

CASHPOR India worked with same infrastructure until its financial breakeven. It broke even first time in March 2003 and second time in the year of March 2008.The story of the year has to be achievement of financial break-even by CASHPOR Micro Credit, as planned five year ago, with the achievement of an Operating Self- Sufficiency of 103%,compared to the planned target of 104%.In the event, we needed operations in 13 instead of the 10 Districts planned; but otherwise the profile of break-even is pretty much as planned:303,145 Active Loan Client(as against the 286,965 planned), a portfolio of

Rs.1,473,157,654(as compared to the Rs.151.2 Crore planned),and PAR of 1.8%(well within the target of <5%). Even our basic cost and yield ratios are close to the targets: an Administrative cost Ratio(ACR) of 0.13(0.14), a Total Cost Ratio of 0.26 (0.21), and a Yield on Portfolio of
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26% (22%), Fortunately our accumulated losses prior to break-even at Rs. 4.7 crores are considerably less than the projected figure of Rs. 6.9 crores. Cashpor recognizes that financial sustainability is a necessary condition for maximizing the scope and depth of their outreach to the poor. The Cashpor brand of microfinance services is a group lending model. All Cashpor clients are women whose income falls below India's official poverty line. In this target group, preference is given to the poorest women who tend to come from social groups that are most marginalized. Micro loans for income generation are Cashpor Micro Credit's primary product, and clients must invest in an income generating activity that can make repayment possible. Typical activities include livestock for milk production, trading, services, agriculture, etc. The size of loan that is disbursed is dependent upon the number of times a client has previously taken out loans and how timely their payments have been. Cashpor also offers an emergency loan product for unforeseen expenses (i.e., illness, food deficit, etc.). In the past fiscal year, outreach has doubled, and the portfolio has
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nearly doubled. Based on this, the Cashpor Group has developed an aggressive expansion plan through fiscal year 2009/2010, which would provide financial services to half a million households in eastern Uttar Pradesh and Bihar.

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Since forging a partnership in 2000, Grameen Foundation has actively worked with Cashpor Micro Credit in helping it achieve its goals of poverty alleviation. In the past two years alone, loans, growth guarantees, and equity investments have been made totalling over $600,000. Outside of financial assistance, training has been carried out for the Poverty Progress Index (PPI) and assistance has been provided to CASHPOR Micro Credit in writing a business plan and in providing feedback on its hardware/software needs.

VISION AND MISSION

VISIONWe see all the BPL women in eastern Uttar Pradesh & Bihar having access to microfinance services; and many utilizing them to lift themselves & their families out of poverty. 22

MISSIONOur mission is to identify & motivate poor women in rural areas, and to deliver financial services to them in an honest, timely and efficient manner, so that our vision is realized & CMC itself remains a financially sustainable Micro Finance Institution for the poor

DEVELOPMENT GOALS

Increased access to financial services; Poverty reduction; Employment generation; Development of start-up enterprises; Growth of existing businesses; Children's schooling; Health improvement; Gender equality and women's empowerment; Water and sanitation

GOVERNANCE
Board of Directors

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Members of Board
CASHPOR group is following one of the best Corporate Governance Practices. The Company is governed by its highly qualified and skilled Board. At present CASHPOR has 9 members in its Board comprising of experts in the field of Microfinance, banking, development, corporate law and finance. The Company is also having adequate representation from corporate, banking, administration and microfinance sectors.

Chairman CASHPOR Trust

.Mr. Sanjoy Dasgupta, aged 70 years is a commerce graduate. He is the Chairman of CASHPOR Trust and Director of the Company and has experience of more than 10 years in Micro Finance. He is also Director CFTS Pvt. Ltd. and CFS Pvt. Ltd. In addition to this he is ex-Chief Administrative Officer in PIDT.

Chairman CFTS,CMC,CFS
Prof. David S. Gibbons, aged 70 years, is Ph. D in political economy. He is Chairman of the Company. He is also the Chairman Cashpor Financial & Technical Services Pvt. Ltd. (CFTS) and Cashpor Financial Services Pvt. Ltd. (CFS), and settler-Trustee of CASHPOR Trust. He has more than 20 years experience of promoting and building institutional capacity for GBtype microfinance institutions in many countries throughout Asia. He is author and joint-author of many papers and training manuals on building institutional capacity for microfinance for poor women, and on it's financing

Vice Chairperson

Ms. Moumita Sensarma, aged 43 years is a Chartered Accountant (CA). She is Honorary Vice Chairperson of the Company. She is also the Chairperson of the Audit and Credit + Committees of Board. Formerly Head of Microfinance and Sustainable Development India for ABN AMRO Bank. She has experience of more than 7 years in micro finance.

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Managing Director

Mr. Mukul Jaiswal, aged 38 years is a Chartered Accountant (CA). He is also the Managing Director of CFS Pvt. Ltd. and Director- in- Charge of CFTS Pvt. Ltd. He has experience of more than 9 years in micro finance.

Director, CMC Board Positions/Other Professional

Mr. J. N. L. Srivastava, aged 67 years is a M.A. He is an independent Director of the Company; and also a retired IAS Officer, and Managing Trustee, IFFCO Foundation, New Delhi. Director, CMC Board Positions/Other Professional

Mr. Deep Joshi, aged 63 years, is an independent Director of the Company; and has an MBA, SM (Mechanical Engineering), BE. He has an experience of more than 25 years in Micro Finance. He is also founder- Director of PRADAN. Deep was winner of the Magsaysay Award in 2009.

Director, CMC

Ms. Vijayalakshmi Das, aged 59 years is a nominee Director of the Grameen Foundation USA and Vinod Khosla; and is a post Graduate in Economics. She is also a Director in CFTS Pvt. Ltd. and Chief Executive, Ananya Finance for Inclusive Growth Pvt. Ltd. and has experience of more than 11 years in Micro Finance.

Nominee Director ICICI Bank Mr. Utpal Isser, aged 35 years, is the Nominee Director of ICICI Bank Ltd. and is a PGDRM (IRMA). He is also the Deputy General Manager of ICICI Bank Ltd. Nominee Director, Dia Vikas

Mr. Christopher Murdoch, aged 47 is the Nominee Director of Dia Vikas and the Director of Strategic Services, Opportunity International, Australia.

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Board Positions/Other Professional Ms. Anuvinda Varkey, aged 58 years, is a lawyer and Independent Director in CFS Pvt. Ltd.

The organizational structure is as follows:

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Range of products and services

A.Financial products and services offered
Microcredit loans for microenterprises; Loans for agriculture; Microcredit for other household needs/consumption Credit life insurance.

1.Loan Products
CASHPOR has 3 loan products: 1. Income Generating Loans : Rs. 2000/- to Rs. 14000/-

In the first cycle, a newly joined member gets Rs. 2000/- to Rs. 8000/In the second cycle, a member gets Rs. 2000/- to Rs. 12000/In the third cycle, a member gets Rs. 2000/- to Rs. 14000/Loan tenure is 52 weeks (Clients may pay weekly or monthly)
2. Emergency Loans : Rs. 1000/- only

A member, who has some emergency situations such as flood, fire, critical disease or major accidents, can be granted an emergency loan. The loan tenure is 25 weeks.
3. Bara Loan: Rs. 15000/- to Rs. 25000/-

Bara Loan Eligibility: 1. A member who has taken loans in at least 4 cycles and is associated with the company for at least 3 years and has maintained good record with the company. Loan tenure is same as Income Generating Loan (IGL).

2.Saving product
3.Functioing of transcorp(WesternUnion Money Transfer)

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Credit Plus Activities

Financial literacy education; Basic health/nutrition education Other education services offered Other health services offered Leadership training for women Scholarship opportunities Community health leader training

Two Important Social Development work in Mirzapur District

The Scholarship Program In Mirzapur District The purpose of the scholarship program is to encourage clients to keep their well performing children in the school and to help them financially. Fifty scholarships are available annually in CMC branch (Mirzapur District). Based on their examination results at each level in the educational system, the applicant children are ranked. Fifty percent of scholarships are reserved for girl children, and other half are distributed to open competition. Till last year, this program was being run by CASHPOR Trust with the help of two staffs of the company which were lent to CASHPOR Trust. Now from the current financial year, this program will run by the companyitself. .

Details of scholarship programs are follows:

Scholarship Distribution at Bhawan Branch: -

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Disbursement of Scholarship to 50 student of good cashpor client. Out of 50, 25 girls & 25 boys got the scholarship in2008-09. This was third time of disbursement of scholarship at Bhawan Branch. Almost in all branches of CMC in Mirzapur and some branches of Varanasi, scholarship programme is running.EXRaja talab(2007-08),Lal ganj(2007-08),Mahraj ganj(2008-09),bhawan mini branch(2006-09),Suriyawan,Narayan pur,Adalhat,Paho,Gursndi,etc

SI.No. Category of Scholarship 1. 2. 3. 4. Primary Upper Primary Upper Primary Intermediate

Eligibility Criteria

Amount to be paid to each student Rs. 50/- only per student. Rs. 100/- only per student.

Result of fifth standard. Rs. 50/- only per student Result of eighth standard Result of secondary standard.

Result of Higher Rs. 125/- only per student secondary Standard

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IIn the year 2009-2010 Scholarships were awarded to 1064 Children under 34 branches of CMC. The total Expenditure during the last year was Rs.11,25,675/-. Out of these 1064 Children 602 were girls & 462 were boys. Financial support was provided in full by Cashpor Micro Credit.

Health Camp at Raja Talab Branch: It was organized first health camp for CMC client & their family member CASHPOR at Raja Talab.This health camp was organized exclusively for CMCs good clients & their family member of Raja Talab Branch. In this health camp, 2500 patient were treated byrenowned doctors of BHU & Mata Anandmayee Hospital; Shivala, Varanasi. This camp was organized by CASHPOR group in collaboration with Mata Anandmayee Hospital out of 2500, 1000 male, 1000 female & 500 child were treated by doctors of different expertise, name some doctors who gave their services voluntarily for camp are; Dr. Prakash Devedi, eye specialist. Whole time of Mata Anandmayee Hospital Shri Prtho Brahmchari encouraged us by him valuable presence.

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Financial Literacy workshops for clients

Every year we conduct a financial literacy program to educate our clients on the existing baskets of products regarding its actual cost & pricing etc. We also make them aware about the new developments taking place in the company. This year we initiated a insurance product for our clients, here our core focus was on the awareness and need for the insurance.

Community Health Leadership

CMC has signed an agreement with healing fields foundation unique project recently launched by the company (selected from our women borrowers) on pilot basis in Buxar District of Bihar 21st September 2010 in association with Healing Fields Foundation (HFF). Under this project our company and HFF will select 80 women among our clients and train them for six months to become a full fledged Community Health Leaders (CHL). Each of such 80 CHL would be able to provide health intermediary services to 300 Cashpor Clients. Households with average total population of 1500. In this initiative 80 CHL would be able to reach 24000 CASHPOR clients households with a population 120000. Company expects that through this program Company will be able to bring measurable changes among our clients in terms of Health seeking behavior, improvements in health and dietary habits, awareness of healthcare programs and services of the government, possible decrease of preventable and communicable illness like vector borne and water borne, over a period of 2 to 4 years. If this pilot is successful, then it will be disseminated to other CASHPOR districts.

Integration of Health Education

This is a very unique project recently started by the company on pilot basis. Under this project, all center managers of eighteen selected branches in six districts (Buxar, Ballia, Chandauli, Ghazipur, Mirzapur, Varanasi) are engaged in providing fifteen minutes of health education for clients in each of their center meetings after conducting their normal business in each such center on daily basis. Currently all these center managers are delivering lessons to our members of the topic facing illness that attack our children. For this purpose, these center managers have been provided training by our training department in association with Freedom From Hunger and Micro Credit Summit campaign. We getting a positive response from our clients as well as from our staffs. Our Center Managers and Supervisor are highly motivated in providing healthcare trainings to the clients.
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FINANCING STRUCTURE
Cashpor Micro Credit Balance Sheet as at 31 March 2011
(All amounts in Indian rupees) SOURCES OF FUNDS Shareholders' funds Share capital Reserves and surplus Schedule 31 March 2011 31 March 2010

2 3

53,900,000 120,613,843 174,513,843 481,364,813 10,269,500 296,581,470

53,900,000 45,346,650 99,246,650 287,051,335 13,767,700 174,036,985

Subordinated loan funds - Foreign currency [refer Schedule 19 (x)] - Rupee currency [refer Schedule 19 (xi)] Loan funds Secured loans Unsecured loans

4 5

2,249,122,401 7,500,000 2,737,987,214

2,278,303,725 39,833,337 2,605,188,397

APPLICATION OF FUNDS Fixed assets Gross block Less: Accumulated depreciation Net block Capital work in progress 6 47,176,047 (39,367,970) 7,808,077 7,808,077 7 44,934,372 (37,652,101) 7,282,271 262,000 7,544,271 50,000,000

Investments

Current assets, loans and advances Cash and bank balances Loan portfolio Other loans and advances Other current assets

8 9 10 11

691,754,191 2,082,512,303 45,647,275 11,509,218 2,831,422,987

705,304,355 1,968,933,227 54,772,543 9,790,880 2,738,801,005

Current liabilities and provisions Current liabilities Provisions

12 13

88,001,808 13,242,042 101,243,850 2,730,179,137 2,737,987,214

183,792,914 7,363,965 191,156,879 2,547,644,126 2,605,188,397 35

Net current assets

Significant accounting policies Notes to accounts

1 19

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Cashpor House Index (CHI)

CASHPOR uses a tool, the CASHPOR Housing Index (CHI), to identify poor household in cost effective manner. It is an index based on the height of the wall and material used in the wall and roof of a house. Poor people struggle for food and clothing and they live in small houses, made of locally available materials with their own labour (means no cost is involved). The logic of CHI is based on the premise that poor people spend their money on basic necessities (food, clothes, diseases etc.) and social obligations (daughters marriage, death ceremony etc), while any surplus is invested in their houses. A good house not only reduces their vulnerability, but denotes higher social status and self esteem. Therefore, the quality of house is a reflection of prosperity of the household. The number of poor households in a village is determined by use of the CASHPOR House Index (CHI).The CHI has been further adapted for use in eastern UP and Bihar. As it is an area of long established settlement, houses tend to be larger than in more recently settled areas. Double-storey houses are still excluded, but otherwise, size of the house is not a critical indicator. Rather height and materials of the walls and materials of the roof have become the key indicators. Further in view of the recent Government policies, various State Governments have been issuing patta land and Indira Awaas (oneroom pucca houses) to the poor people. Such land and houses are to be ignored, provided their occupants fulfil the asset norms of CASHPOR.
Cashpor Housing Index a. Height of the Walls and Materials used Score i. More Than 5 feet and made of brick. 4 ii. More than 8 feet and made of mud. 2 iii. Between 4 and 8 feet and made of mud. 1 b. Materials of Roof i. Concrete/Pucca/Patia/New Tiles/GI Sheet 2 ii. Old Tiles /GI Sheet 1 iii. Thatch/Straw/Plastic/Leaves 0 c. Maximum Score 6 d. Poverty Status i. Non Poor 4 or more ii. Moderately Poor (MP) 3 iii. Very Poor (VP) 2 or less e. If the house index score is =<4 and for the occupants of government allotted houses, you must conduct the asset interview. Following households are not eligible for our program: 39

Households, where any member has any type of motor vehicle, like a motor bike, car, jeep, van, tractor, hand tractor, etc. The house is built with brick walls and a reinforced concrete roofn(excluding the Government allotted houses).

How is the PPI created?

1. 2. 3. 4. Start the representative national income/ expenditure survey. Analyze the data to rank indicators that strongly correlate with poverty. Indicators are tested and vetted with local MFIs and representatives. Results are highly accurate with 90% confidence most PPIs are accurate within +/ -1 -3% with sufficient sample size.

Progress out of Poverty Index for India

Indicator Value Points

1 How many people aged 0 to 17 are in the house hold.

A. B. C. D. E.

Five or more Four Three Two One

0 4 8 13 20 27 0

2 What is the house holds principal occupation.

F. None A. Laborers (agricultural, plantation, other farm, hunters, tobacco prepares, product market and other laborers) B. Others C. Professionals, technicians, clerks, administrators, managers =, executives, directors, supervisors and teachers. A. No B. Yes A. Firewood and chips, charcoal, or none. B. Others C. LPG A. No B. Yes 40

8 14 0 4 0 5 17 0 6

3 Is the residence all pucca (burnt bricks, stone, cement, concrete, jackboard/ cement-plastered reeds, timber, tiles, galvanized tin or asbestors cement sheets)? 4 What is the households primary source of energy for cooking?

5 Does the household owns a television?

6 Does the household own a bicycle, scooter, or motorcycle? 7 Does the household own an almirah/dressing table. 8 Does the household owns a swing machine?

A. No B. Yes A. No B. Yes A. No B. Yes A. None B. One C. Two or more A. None B. One C. Two or more

0 5 0 3 0 6 0 6 9 0 5 9

9 How many pressure cooker or pressure pans does the household owns?

10 How many electric fans does the household owns?

DESCRIPTION OF STUDY AREA

41

About the CityVaranasi is also known as Benares, Banaras, or Benaras or Kashi or Kasi is a famous Hindu holy city situated on the banks of the River Ganga. It is one of the oldest continually inhabited cities in the world, dating back thousands of years and contemporaneous with the Sumer civilisation.The city is called Kasi, "the luminous" in the Rigveda. It is often also referred to as "city of temples and learning". The Varanasi City is the district headquarters of the Varanasi district. Varanasi is also renowned for its rich tapestry of music, arts, crafts and education. Varanasi abounds in the art of silk weaving, an exotic work of art which manifests itself in precious Banarasi Silk Sarees and Silk brocades which are cherished as collectors items across the world today. Important Rivers : Varuna, Ganga and Assi rivers flow through the district. Climate: Varanasi has a humid subtropical climate with high variation between summer and winter temperatures. Summers are long, from early April till October, with the monsoon season in between. The average temperature in summers is 32C46C. Winters are from December to February. The average temperature in winters is 5C15C. The average annual rainfall is 1110 mm (44 in). Fog is common in winter while hot dry winds called loo blow in summer. The city is relatively free from the air pollution. Attractions:

42

Shri Kashi Vishwanath Mandir, Sarnath, New Vishwanath Temple, Kal Bhairav, Sankatha Temple, Mritunjay Mahadev Temple, Tulsi Manas Temple, Durga Temple, Sankatmochan Temple, Bharat Mata Temple

Facts:
Table 1: District level indicators, Varanasi
Population District* -3138671 persons Urban population-District* -1260571 persons Slum population-District***- 457568 persons SC & ST* 436314- persons TV at home** -55.2 % Mobile Phone ownership**- 44.8 % Indicators based on DLHS-2 and DLHS-31 Indicator DLHS-3 Total Women married <18 yrs Women 20-24 with 2+ births Institutional Births Family planning Use Any method 57.0 52.5 37.9 59.2 54.5 DLHS-2 Total 43.7 52.9 34.4

43

Any modern method Source: * Census of India, 2001

43.5

41.9

** District Level Household Survey-3, 2007-08 *** State Urban Development Authority, 2003-04

Table 2: Urban Slums in Varanasi: At A Glance

Indicators Total Slum Population (Census 2001) Average Household Size (Census 2001) Total Number of Households (Census 2001) Total BPL Population (SUDA) Total Number of BPL Households (SUDA) Source: Census 2001; SUDA, Varanasi Numbers 457,613 8 57,202 96,344 12,043

Economic Base:
Out of total inhabitants of 1,202,443 (in 2001) in VaranasiUA, only 26.64% was recorded as employed, in which only10.72% was engaged as industrial and manufacturing workers. Varanasi has several small cottage industries,including Silk sari making, the production of textiles such ashand-woven carpets, and handicrafts. Banarasi paan (betelleaf) and khoa (a milk product) are popular, and the relatedsmall-scale industries employ many people.

44

PicA meeting in Sunderpur area

45

ABOUT PROJECT TITLE Socio-economic development is the process of social and

economic

Development in a society. Socio-economic development is measured with indicators, such as GDP, life expectancy, literacy and levels of employment. Changes in less-tangible factors are also considered, such as personal dignity, freedom of association, personal safety and freedom from fear of physical harm, and the extent of participation in civil society. Causes of socio-economic impacts are, for example, new technologies, changes in laws, changes in the physical environment and ecological changes.

Social change refers to an alteration in the social order of a society. It may refer to the
notion of social progress or sociocultural evolution, the philosophical idea that society moves forward by dialectical or evolutionary means. It may refer to a paradigmatic change in the socio-economic structure, for instance a shift away from feudalism and towards capitalism social development theory attempts to explain qualitative changes in the

structure and framework of society, that help the society to better realize its aims and objectives. Development can be broadly defined in a manner applicable to all societies at all historical periods as an upward ascending movement featuring greater levels of energy, efficiency, quality, productivity, complexity, comprehension, creativity, mastery, enjoyment and accomplishment. Development is a process of social change, not merely a set of policies and programs instituted for some specific results. This process has been
46

going on since the dawn of history. But during the last five centuries it has picked up in speed and intensity, and during the last five decades has witnessed a marked surge in acceleration.

Economic development

is the increase in the standard of living in a nation's

population with sustained growth from a simple, low-income economy to a modern, highincome economy. Also, if the local quality of life could be improved, economic development would be enhanced. Its scope includes the process and policies by which a nation improves the economic, political, and social well-being of its people.

Socioeconomics or socio-economics or social economics

is an umbrella

term with different usages. 'Social economics' may refer broadly to the "use of economics in the study of society. More narrowly, contemporary practice considers behavioral interactions of individuals and groups through social capital and social "markets" (not excluding for example, sorting by marriage) and the formation of social norms. In the latter, it studies the relation of economics to social values. A distinct supplemental usage describes social economics as "a discipline studying the reciprocal relationship between economic science on the one hand and social philosophy, ethics, and human dignity on the other" toward social reconstruction and improvement or as also emphasizing multidisciplinary methods from such fields as sociology, history, and political science. In criticizing mainstream economics for its alleged faulty philosophical premises (for
47

example the pursuit of self-interest) and neglect of dysfunctional economic relationships, such advocates tend to classify social economics as heterodox. In many cases, socioeconomists focus on the social impact of some sort of economic change. Such social effects can be wide-ranging in size, anywhere from local effects on a small community to changes to an entire society. Examples of causes of socioeconomic impacts include new technologies such as cars or mobile phones, changes in laws, changes in the physical environment (such as increasing crowding within cities), and ecological changes (such as prolonged drought or declining fish stocks).[citation needed] These may affect patterns of consumption, the distribution of incomes and wealth, the way in which people behave (both in terms of purchase decisions and the way in which they choose to spend their time), and the overall quality of life. The goal of socioeconomic study is generally to bring about socioeconomic development, usually in terms of improvements in metrics such as GDP, life expectancy, literacy, levels of employment, etc.[citation needed] Although harder to measure, changes in less-tangible factors are also considered, such as personal dignity, freedom of association, personal safety and freedom from fear of physical harm, and the extent of participation in civil society. Socioeconomic status (SES) is an economic and sociological combined total measure of a person's work experience and of an individual's or familys economic and social position relative to others, based on income, education, and occupation. When analyzing a familys
48

SES, the household income, earners' education, and occupation are examined, as well as combined income, versus with an individual, when their own attributes are assessed. Socioeconomic status is typically broken into three categories, high SES, middle SES, and low SES to describe the three areas a family or an individual may fall into. When placing a family or individual into one of these categories any or all of the three variables (income, education, and occupation) can be assessed. A fourth variable, wealth, may also be examined when determining socioeconomic status. Additionally, low income and little education have shown to be strong predictors of a range of physical and mental health problems, ranging from respiratory viruses, arthritis, coronary disease, and schizophrenia. These may be due to environmental conditions in their workplace, or in the case of mental illnesses, may be the entire cause of that persons social predicament to begin with.

49

: PROJECT REPORT:

50

ABOUT THE PROJECT

To study the role of Casphor Credit in the Socio-Economic Development of the people in Varanasi District.

Objectives:
1) To determine the economic status of the customers after and before the loan sanction 2) To determine the social upliftment of the customers under Casphor credit. Health related development Literacy level enhancement Women entrepreneurship development Awareness about education

3) To evaluate the satisfaction level among the clients of Cashpor Micro Credit.

RESEARCH METHODOLOGY
Background: After all, the ultimate goal of all research is not objectivity, but truth. Author - Helene Deutsch 1884-1982, American Psychiatrist Research is defined as human activity based on intellectual application in the investigation of matter. The primary aim for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe.
51

The sequence of the flow of the research begins by identifying the topic of research. After that a research plan is formulated describing the research method and type of research followed by collection of data and presentation of findings. Sequential flow of Research

Formulate the research plan

Collect data

Present findings This chapter deals with Research Methodology of the study, which includes the research model plan, selection data of study area, and sampling analytical

techniques, procedure.

specification,

collection

Research design :

design This study has been exploratory and descriptive. Data was

This study has been descriptive qualitative. Data was collected through survey,interview,observation.document review with structured data collection method i.e. a formal questionnaire was prepared with questions in
52

a prearranged format and sequence. In addition to this informal questions were also asked. Research Technique Questionnaire survey : The questionnaire survey method was used for data collection to obtain data from the respondents. Interview Technique : Oral communications were made to respondent about their requirements. The marketing personnel or purchase personnel were contacted with this regard to gather basic information. I have also undergone to a detail interview with farmers and related persons. Research Tool Interpretation is based on percentage analysis. Sampling The sampling technique used in the study is cluster & convenience sampling. Elements Sampling units _cashpor clients Varanasi(sunderpur,velupur,saketnager

saraynandan,saketnager,sudamapur ,vinayka,farukhinager,etc Period of study conducted Sampling size Secondary data S e c o n d a r y d a t a m e a n s d a t a t ha t a r e a l r ea d y a va i l a b l e i . e. t he y r ef e r t o t h e d a t a wh i c h h a v e a l r e a d y be en c ol l e c t e d an d an al y z e d by s o m e o n e e l s e . W h e n t h e r e s e a r c h e r u t i l i z e s s e co n d a r y d at a, t h en h e h as t o l o o k i n t o v a r i o u s s o u r c e s f r o m whe r e h e c an ob t a i n t h e m. In t hi s ca s e h e i s
53

May-June, 2012 >200

c e r t a i n l y n o t c o n fr o n t e d wi t h t he pr o bl e m s t ha t ar e u s u a l l y as s o ci a t e d wi t h t h e c o l l e c t i o n o f o r i g i n a l d at a. (i) (ii) Internet Da t a fr o m c a s h p o r o f f i c e

Primary data P r i m a r y d a t a a r e t h o s e t h a t a r e co l l e c t e d f r e s h an d f or t he fi r s t t i m e a nd t h i s h a p p e n t o b e o r i g i n a l i n c ha r a c t e r . T he r e a r e s eve r a l me t h o ds of collecting primary data. a ) Ob s e r v a t i o n me t h o d b ) Th r o u g h Qu e s t i o n n a i r e s c ) In t e r v i e w m e t h o d d ) Th r o u g h s c h e d u l e s The source for primary data has been the survey conducted by me with the support of officials from cashpor. Data Collection Stage Stage I Gathering the Information about economic status of cashpor clients Information about economic status was collected . it was done by personally interaction. Stage-II Gathering the information about health education and scholarhip

54

The personal interviews were conducted with clients about HEALTH EDUCATION AND SCHOLARSHIP and were studied their impact on their development.Data were also collected by secondary source. Stage III Information Handling The collected information is handed over to our project guide, then a detail discussion took place on the information and final decision is taken whether to further proceed on it or not. Stage IV Data Analysis The data collected about various prospect, is analyzed and a clear picture about the programmes and their impact is obtained and it is presented to the top management.

Scope The research was conducted only in the few area of Varanasi district about various aspects of microfinance and their impact on customers(women clients). So cant be represented at national level but can be a helpful tool for further study in this area to students, researchers, academicians etc. This study will also help company to improve their operation system.

55

Limitation This project was mainly concerned with the socio-economic development of people in Varanasi district .and it was studied in limit area of Varanasi. Most of the social reformal activity were running or are running in mirzapur(scholarship) and in some parts of bihar(buxer),healing field foundatio n project . so some manipulation are based on secondary data. Other limitations faced during the project were: Accuracy of data depends upon the ability & willingness of the respondents. Unwillingness of respondents to share information. As the primary data about customer satisfaction and customer relations is collected through convenient sampling so the exact market scenario could be different than the analysis show.
Respondents were reluctant to answer questions as they were not aware

of the importance of the project and topic In some cases education level of respondent was a limiting case. Secondary data are available in the scattered manner due to which problem arises in summarization of data. Also the requirements of customers were very much scattered in terms of size & specifications.

56

SWOT ANALYSIS

STRENGTHo large network of branches, spread across the length and breadth of U.P and BIHAR o Enviable track record of posting good performance uninterruptedly year after year since its inception o Good management system and discipline. o Employees keen to motivate the clients efficiently. o The technology system is good which minimizes the time
o (First MFI to use mobile system for its operation) o good reputation among client due to its social

reformer process
o Loyalty of old Customers

57

WEAKNESS o Rural branches largely lacking in infrastructure. o High interest rate hinders the loan repayment. o Less employee satisfaction. o Comparatively lengthy Documentation system

OPPURTINITIESo As the company deals mainly in U.P & Bihar so it has lots of opportunity in other states also. o Diversified business oppertunities. o Technological innovations for better management. o Branch model is indeed working and can boost the

branch business if followed in right way

58

THREATSo Large competition due to other MFIs. o Other MFIs have professional and modern

approach. o Customer Company loyalty should cannot develop be taken for granted. with

best

relationship

customers and CRM at the branches.

o MFI are

largely affected by government and rbi

policy.

59

DATA ANALYSIS AND INTERPRET ATION

60

Chapter III: FINDINGS

3.1 CHANGES IN INCOME GENERATION :

8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 B efore After F inancing F inancing

incom e

This chart reveals about the changes in Income generation before & after financed by Casphor microcredit. Before the concept came into their life, they were used to fulfil their livelihood by daily wages or any other means. After facilitated by microfinance , they are generating

61

some extra income by creation of small micro-enterprises start by their own. This process not only helps about their asset accumulation but fix a habit to make timely repayment, which build their image in groups & make an way to get again financed or with increased amount of loan. If a new entrant is introduced in the group with no record of their performance in the society, after getting financed by initial amount of loan, they fulfil their basic needs after generating some income with this facility, feels very heartening with those women. It also causes a matter of self-respect in the society, prepares a roadmap for decision taking ability. 3.2 CHANGES IN HEALTH CONCIOUSNESS:
80 70 60 50 40 30 20 10 0 Before F inancing After F inancing
Hea lth

62

Health is Wealth but it sounds well when the people fulfil their basic needs but after then next parameter goes for health. Before the facilitation of loan, JLG women prefer to busy with their livelihoods, means no attraction for their health but, after when women got selfemployed then their health matters a lot. They prefer private hospitals for getting good medicines. If women of the society are healthy then whole Country will be free of diseases.

63

The response of the clients about CMC canbe said good.They were attending meeting at regularly,paying their loan taken.Clients having more than 2 cycle of loan disbursed were happy ,while the clients having 1 to 2 loan cycle were satisfied.There were no response by new clients,while some were dissatisfied because of following reasons A . long time of meeting sedule B. gap between two cycle of loan disbursement C. lengthy documental process.

3.3 Literacy level

64

Before joining the CASHPOR about 74% of clients (women) were illiterate and were unable to use her own sign.But after joining CASHPOR and by practiced in presence of CMC member they became literate and now use their sign instead of thumb impression. Our society and economy cannot grow at high rate until percentage of literacy will be high. 3.4 CHANGES IN EDUCATION LEVEL :
70 60 50 40 30 20 10 0 B efore F inancing After F inancing Education

As we know that a poor household spend very less amount in other things except their livelihood purposes. with the help of govt. Schemes, some percentage of children access to the basic education. I found in my survey that school goer children are very less reported in

65

Govt. Schools. But, after enrolled in this facility, (CMC TRUST) they are not only forced to attend basic education but also in Private Schools. The upliftment in these parameters shows that a basic understanding of Quality of life is accessible to all members/holders of microfinance by which the socio-economic changes in society are seen.

3.5 WOMEN ENTREPRENEURSHIP & EMPOWERMENT

66

About 42% of women(clients) are taking loan for onset of their business,thus creating Women entrepreneurship.generally They take loan for following purposes a.animal husbandary b.vegetables c.shop d.tailoring e.catering etc.

All the above activities are making the women involved, self dependant and the economic improvement in their family changes their way of living. Such involvements increase the income for the family and in turn changes the socioeconomic standards the member lead. 3.6 CHANGES IN HUMAN DEVELOPMENT INDEX :

67

80 70 60 50 40 30 20 10 0 BF R EO E AF E TR F AN IN CING F AN IN IN C G

H ALT YLIF E H E K O LE N W DGE S AN T DAR O LIVIN D F G

HDI measures the average achievement in three basic dimension of human development. A long and healthy life as measured by life expectancy at birth. Knowledge as measured by the adult literacy rate (with two-third weight) and combined primary, secondary, and tertiary gross

enrolment ratio (with one- third Weight age). A decent standard of living as measured by GDP per capita. The overall representation of graph shows about how to change the life of the beneficiaries after financing by different MFIs to uplift their economic status.

3.7 How cashpor clients define herself after joining

68

Most of the cashpor clients having more than 3 loan cycle were satisfied with the company and its policies.They had become literate, health conscious. Many clients having multiple loaning were

preferring CMC as single lender and retention rate of clients was also very impressive(>98%).

3.8 The knowledge given by cashpor

69

Most of the clients were satisfied with the knowledge driven by cashpor staff and were implementing them to to uplift their life style. Knowledge driven by cashpor *Importance of education *health education *senatory,hygienic condition *family planning *insurance related *scale of interest rate and so on
3.9

The survey was conducted to know the reason for preference of CMC
70

REASON FOR PREFERENCE

INTERPRETATION. It is very important for urban poor that the loan should be easily

available.They are also attach due to liberal &relaxed policies.

FINDINGS-

71

FINDINGS
Awareness level of company in Varanasi district is good but not up to the mark, while company has already completed his 13 years of establishment.
72

(while cmc is saturated in the northern region and have organized several social activities still there is large clients having cmc account also have account in other SHG especially in SKS). Having attractive social reformer programme in comparison to other MFI.. There is a about 85-90% clients satisfied with the CMC, and the retention rate is also very high (>95%) this thing is in favour of CMC. Comparatively CMC is more popular among the clients of Sunderpur region.

Few of them they are dissatisfied with the criteria of providing the loan through CMC and documentation process. Maximum respondents stated that the strength of CMC is better than others There is overwhelming evidence substantiating a beneficial effect on income smoothing and increases to income. Change in household income after 3 to 4 loan cycle has shown a significant growth. About 95 percent of households reported that the social empowerment of women had increased after attaining the membership in the CASHPOR over a period of time. A significant improvement in control over money with respect to buying of consumer durable assets was reported. Increase in the decision-making and control over expenditure on childrens education.

73

Chapter V: RECOMMENDATIONS
There are lot of things on which the MFIs should have to work to make its aim a success. The major recommendation are given below: Because CMC has strong infrastructure , technically rich operation

system ,it should invade in other parts of livelihood condition.

India

having poor

Company have no specially care on women entrepreneurship

development while it is exclusively based on women clients, while all know that generally women are loyal and their loan repayment record is good
There is need of proper awareness not only about the organization

but also their product/services; they should highlight their product/services more. Company have launched new products such as saving scheme, functioning of transcorp (western union money transfer system). Implementation of any scheme or services, it should be in such a way that make compulsion to people to think about it. Strike while iron is hot -- it should approach to the farmers during the crop season; they should not wait for customer. Documentation process should be flexible..
Rate of interest charged should be less so that the poor people can

give it back properly which is very high and that is 24% +1%processing charge.

74

 A well organized program should be done to make the people aware about different method of using their loan to have a good economic development.
A full fledge program of Entrepreneurship should be started to join

the remaining portion of population to financial benefits to uplift the economic status.

QUESTIONNAIRE
1. Who use the loan a. self b. husband c. others

2. Purpose of loaning a. Consumption b. Agriculture c. Animal Husbandry d. Income generating activities e. Asset Building f. Emergencies g. Others

3.Do you know about all cashpor plans ,sevices.and rules

75

a.know all plans b.know few plans c.know only plan which I am using 4.The knowledge dispersed by cashpor a.very effective b.effective c.less effective d.uneffective 5.How they define herself before and after joining cashpor (in terms of social development and economic development) a.highly satisfied b.satisfied c.uneffective d.cannot say 6.Literacy

7.Effect of Health conscious programme a.effective b.uneffetive 8.Social awareness increases a.yes

76

b.no 9.Training experience

10.Development of women entrepreneurship

11. Recognition in family

12. Access to Immunization

13.Access to sanitation facility

14.. Family Income

15. Skills development

16. Voicing your concern

17. Nutrition awareness

18. Family Planning awareness

77

19. Girl Child development awareness

20. Health awareness

21. Decision making related to child centered

22. Decision making related to money centered

23. Participation in Development Programmes

24. Individual Income

25. Others (Spe.)

1. PERSONAL DATA
1.1 Name

78

1.2 Age (1) < 25

(2) 26-35

(3) 36-45

(4) 46 - >

1.3 Education

(1) Illiterate (4) Middle Class (7) Graduation

(2) Literate (5) High School

(3) Primary (6) Intermediate

(8) Post Graduation and above

(9) Any Professional Course & Technical

2. FAMILY DATA
2.1 Type of Family: (1) Nuclear (2) Joint (3) Extended

2.2 Total members of Family members

2.3 Who is the head of your family-

(1) Husband

(2) Self

3. ABOUT YOURSELF
3.1 Employment (1) Employed (3) housewife (2) Self employed (4) Labour

79

3.2 Approx. Income Monthly (Rs.) ..

3.3; Who take the decision in your family- (1) Yourself (3) Both

(2) Husband

4. HOUSING FACILITIES
4.1 Type of House(1) Own (2) Rented (3) Others

4.2 Electricity-

(1) Yes

(2) No

4.3Toilet Facility-

(1) Dry Latrine

(2) Flush Toilet

(3) Manual

4.4 Cooking Device-

(1) Gas (4) Angeethi

(2) Kerosene Oil (5) Others

(3) Wood

4.5 Drinking Water-

(1) Piped Water (3) Combined Facility

(2) Hand Pump (4) Others

5. ABOUT THE ORGANIZATIONS

80

5.0

Group Size

5.1. How many members are in your group? (1) < 9 (3) 15 18

(2) 11 15 (4) 18 +

5.2 Group size is

(1) Stable

(2) Increased

(3) Decreased

5.3 When you joined the group (years)?

5.4 Who suggested to join the group? (1) Self (3) Friends/ Relatives

(2) Family Members (4) NGOs workers

(5) Other members of the Group

5.5 What is your position in Group?

(1) Ordinary Member (3) group leader

(2) Active Member

6.Meetings
6.1 Frequency of meeting(1) Weekly (2) Monthly

81

6.2 How many members attend the meeting? (1) All (3) Some member

(2) Few

6.3 Who take the decision in the meeting- (1) All members (3) Link Worker (4) Mixed

(2) group l

6.4 Training and Experience If Yes, Type of Training No. of Participations Usefulness Yes/ No

6.5 Work shop

QUESTIONNAIRE FOR DEVELOPMENT FUNCTIONARIES

1.0 General Information

2. Age (Years)

3. How many branches are in the area?

4. What are the main problems related to access of poor to micro finance?
82

(1)

(2)

(3)

(4)

6.0 What are the main problems in promotion of micro enterprises? (1) (2) (3) (4)

8.0 Your suggestions to improve functioning of JLGs (1) (2) (3) (4)

9.0 Your suggestions for capacity building of JLGs (1) (2) (3) (4)

Abbreviations
BM Branch Manager CGT Compulsory Group Training
83

CHI Cashpor Housing Index EIR Effective Interest Rate GNI Gross National Income GRT Group Recognition Test HDI Human Development Index HR Human Resource IA Internal Audit MP Medium Poor (according to CHI) NPL National Poverty Line OBC Other Backward Caste OSS Operating Self Sufficiency PAR Portfolio at Risk PPI Progress out of Poverty Index SC Scheduled Caste ST Scheduled Tribe UP Uttar Pradesh MD Managing Director MFI Microfinance Institution MIS Management Information System MNREGA Mahatma Gandhi National Rural Employment Guarantee Act

84

URN Unique Registration Number VP Very Poor (according to CHI) WSWC Women Staff Welfare Committee Employment Guarantee Act URN Unique Registration Number VP Very Poor (according to CHI) WSWC Women Staff Welfare Committee

REFERENCES:
Fuglesang and D. Chandler, Participation as a Process - what we can learn from Grameen Bank, NORAD, Oslo, 1986. ACCION International and The Calmeadow Foundation. 1988. An Operational Guide for M icro- Enterprise Projects. Toronto: Calmeadow. Ackerley, B. A. (1995). " Testing the tools of development: credit programmes, loan involvement and women's empowerment ." IDS Bulletin 26(3). Arunachalam, Jaya. 1988. "Credit Needs of Women Workers in the informal Sector, Case Study of Working Women's Forum (India)." Mimeo. Mylapore. Neera Burra, Joy Deshmukh-Ranadive and Ranjani K.Murthy, 2005, Micro-Credit, Poverty and Empowerment: Linking the triad Sage Publications. K.G.Karmakar, 1999, Rural Credit and Self-Help Groups: Micro-finance needs and concepts in India, Sage Publications Microfinance: Banking for the poor and not poor banking, The Hindu Business Line, Mar 15, 2005.
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Robinson, Marguerite. 2001. The Microfinance Revolution: Sustainable Finance for the Poor. World Bank. Washington. Kropp, Dr. Erhard W. & Suran, Dr. B.S., Linking Banks and (Financial) Self Help Groups in India An Assessment, November 2002 Reserve Bank of India, Report of the Internal Group to Examine Issues Relating to Rural Credit and Microfinance, July 2005 Parvin Razia, M, (2005), Empowerment of Women: Strategies and systems for Gender Justice, Dominant Publishers and Distributors, New Delhi. Bhatt, N. and Tang, S. Y. (1998b). Group-based microfinance and economic development. In T. Liou (ed.), Handbook of economic development (pp. 115-138). New York, Marcel Dekker. Bhatt, N. and Tang, S. Y. (forthcoming). Delivering microfinance in developing countries: controversies and policy perspectives. Policy Studies Journal. Viswanath, Vanita. 1989. Extending Credit to Rural Women: NGO Models from South India. World Bank Working Paper No. 184. Washington, DC: World Bank.

Some photographs of field visit in Sunderpur branch

86

collection

87

Collection + health tips

88

Collection in sukulpura

89

Caspor s employee with me in sunderpur branch

THANK YOU FOR YOUR CO-OPERATION

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91