Bal-Mahila Vikas Samiti : VAMA impact study of Micro Finance initiatives by SPJIMR

VAMA Microfinance and Programs – An Impact Assessment SPJIMR DOCC Project Report 2013

THE EMPOWERED WOMAN An Impact Assessment of VAMA’s Microfinance and other

Development Programs

An assessment of the long-term, sustainable impact on women, households and communities of VAMA’s Microfinance, Financial Literacy and Aasha

programs through a survey of 100 women and in-depth interviews

SHREEJA DASH SPJIMR DOCC Project Report

4th March – 13th April 2013


CONTENTS Acknowledgement Executive Summary

A. Background 1

B. Problem Definition and Framing 2

Context SWOT Analysis Problem Statement Problem Objective C. Methodology 4

Scope of the project Field work executed

Primary data collection and community interaction

D. Impact Assessment Survey 7

Survey Design and Objectives Assumptions Profile of groups Survey Results and Analysis E. Programmes and Concluding Remarks 9

Financial Literacy Programs Aasha Training Programs Conclusion Recommendations F. Individual Contribution 15

Appendix


The report is based on research conducted between March and April 2013 as a part of the

DOCC Project with Bal-Mahila Vikas Samiti.

ACKNOWLEDGEMENTS We thank Mr. Indra Bhushan Verma and all the staff of VAMA who gave us support and

guidance without which this report could not have been completed. We are also grateful for

the patience of and time taken out by over 100 VAMA members – both old and new, for

participating in the survey, and for the insights given by officials of banks and other

organizations. Special thanks to Mr. Bharat Parekh, INBAR for his valuable comments on

our findings. Lastly, we are grateful to DOCC Committee and SPJIMR for organizing this

memorable


EXECUTIVE SUMMARY The report assesses the long-term, sustainable impact on women, households and

communities of the microfinance program of Bal Mahila Vikas Samiti (BMVS or VAMA)

operating in Gwalior district, Madhya Pradesh. Impact of some of the other development

programs under VAMA such as financial literacy and Aasha training programs have also

been discussed. Other recommendations for the organization regarding its operations and

product portfolio have also been suggested. Regular collection and communication of

comprehensive impact assessment data to funding agencies would help secure steady flow

of funds.

Both quantitative techniques – a survey of 100 women from a representative set of from

villages and urban slums, and qualitative techniques - in-depth interviews and client

satisfaction survey, were used to assess the impact of the microfinance program. The

variables examined for assessing impact were economic factors – income changes,

vulnerability reduction, asset growth and accumulation, outcome level of enterprises; socio-

political factors – change in power relationships and shift in economic decision making and

personal factors such as women empowerment.

As compared to the control group the target group (members of VAMA microfinance for one

loan cycle or more, with similar demographic background) reported:

· On a household level: annual household incomes were higher by 39322; ownership levels

for assets of moderate value was higher (not significant for assets of modest or high value);

there were more sources of income per household (reducing vulnerability)

· On an individual level, women reported higher levels of involvement in decision making in

households and higher levels of confidence in dealing with figures of authority

· On an enterprise level, loans were used to start new micro-enterprises and expand on or

invest in existing ones. Product cycles shortened and vulnerability of businesses decreased.

Recommendations:

· Regularly measure impact of programs and communicate results to key stakeholders, donors

and funding agencies and appoint dedicated fundraiser to stem shortage of funds

· Introduce a performance measuring system and enhance operational capabilities through

training and incentives

· Increase initial and subsequent loans amount to arrest customer dissatisfaction (promises

made during initial meeting are not being met) and also to enable clients to start new small

businesses

· Implement a document management system to ensure clarity of goals and processes.

· Periodically measure effectiveness of development programs through both quantitative and

qualitative techniques.

· Adopting fair HR practices and independent auditing


A. BACKGROUND Bal-Mahila Vikas Samiti (VAMA)

Bal-Mahila Vikas Samiti (VAMA) is a non-

profit organization established in 1988 and

registered under Madhya Pradesh Societies

Registration Act 1973. With a staff strength

of 40 (Appendix 1: Breakup of staff by job positions), VAMA works for disadvantaged social

groups such as Dalits, tribals, women, working children and other deprived classes on areas

as diverse as capacity building, livelihood generation, awareness about land rights and

women’s rights, health and sanitation, gender equality, financial literacy and microfinance

(Appendix 2: List of Programs and Activities in 2012). After two decades of social

development work in the economically backward and drought-prone Chambal-Bundelkhand

region of Madhya Pradesh, VAMA started its microfinance program in 2006.

Profits from the VAMA group of colleges and the Microfinance Unit, leave a comfortable

surplus that can be reinvested in these units or directed to the non-income generating

Programmes Unit (Appendix 3: Balance Sheet). However, the microfinance and the

Programmes units are still largely dependent on donors and other funding agencies

(Appendix 4: List of Donor Agencies). A five year Strategic Business Plan outlines the

mission, vision and strategy to achieve 50,000 active clients by 2018.

“To establish an egalitarian society based

on rights so that the poor, marginalized and

dalits - especially women, have equal

participation in all spheres.”

– VAMA Mission Statement

MICROFINANCE PROGRAM

SOCIAL DEVELOPMENT

PROGRAMS

VAMA GROUP OF

COLLEGES

§ Operational in 189 villages and 47 urban slums of Gwalior district since 2006

§ Loan portfolio: Rs. 3,11,58,000; average loan size of Rs. 7514

§ No of groups: 1316; Active clients: 2276, members: 6881

§ Women Empowerment § Financial Literacy Health &

Nutrition § Natural Resource

Management § Livelihood Promotion § Rural Education § Female Feticide § Domestic Violence

§ Colleges offering BBA, BCA, B.Com, B.Sc (Bio)

§ ANM nursing school in Datia district for training women to be nurses

§ Approved by Indian Nursing Council, New Delhi and recognized by Mahakaushal Nursing Council, M.P

Programs under Bal MahilaVikas Samiti / VAMA


APPROACH/STRATEGY USED, PROGRAM, LOCATION & BENEFICIARIES, AND OTHER STAKEHOLDERS, STAFF

COMPETENCY, FINANCIAL HEALTH, EFFECTIVENESS

B. PROBLEM DEFINITION AND FRAMING

CONTEXT OF THE PROJECT As previously mentioned, VAMA operates in the backward and geographically remote

Gwalior – Chambal region of MP. According to the 2011 census, the sex ratio in these areas

is quite low (Bhind and Morena: 822/1000, Gwalior: 862/1000; Datia: 875/1000).

SWOT ANALYSIS

PROBLEM STATEMENT The report assesses the long-term, sustainable impact on women, households and




been discussed. Other recommendations for the organization regarding its operations and

product portfolio have also been suggested.

PROBLEM OBJECTIVES Though VAMA’s programs – both microfinance and development, have been running for

several years, the reports and the data collection (often done by field executives) was


insufficient to get a true picture of the impact of their programs on the lives of these

beneficiaries. As competition over funds from donors and funding agencies intensifies,

communicating the full impact of VAMA’s interventions in terms of social goals achieved

(beyond just loan portfolio size and number of active clients) would help secure a larger,

steadier flow of funds. Regular communication of such achievements and milestones can not

only help them attract new clients, but may also help check the high rate of attrition by

motivating staff.

C. METHODOLOGY SCOPE OF THE PROJECT The report assesses the long-term, sustainable impact on women, households and




been discussed. Due to scheduling conflicts and other constraints (as March was the closing

month for this year, many development programs had already been completed for the year.

As such we could observe only certain programs). Also, due to the limited number of women

we interacted with for Programmes Unit, only qualitative techniques such as interviews have

been used. Other recommendations for the organization regarding its operations and

product portfolio have also been suggested based on field observations, conversations with

staff and officials. Regular collection and communication of comprehensive impact

assessment data to funding agencies would help secure steady flow of funds.

FIELD WORK EXECUTED

A total of 19 days were spent on the field observing the various processes and activities of

VAMA and interacting with beneficiaries. (Appendix 4: Details of Field work executed)

PRIMARY DATA COLLECTION AND COMMUNITY INTERACTION

Over the course of 6 weeks, we spent 19 days in the field and collected data from over 100

women for the MF unit; interviewed a group of 20 women for the financial literacy program;

interviewed a mix of Aasha trainees and trainers and other field staff and organizations

officials. Details of the primary data collection for Microfinance Program are included in

Section D of the report. Also, the details of the tools used for assessment have been

included in appendix 3.


C. IMPACT ASSESSMENT SURVEY VAMA’s Microfinance (MF) program gives loans to women for the following purposes: dairy,

agriculture, microenterprises, services and house repair & maintenance. As of 2012, VAMA

has provided access to capital to 18,128 low-income households in 189 villages and 47

urban slums in Chambal region of Gwalior district, MP. Currently the marketing for the

microfinance program is through grass root marketing, word-of-mouth and client

recommendations.

SURVEY DESIGN AND OBJECTIVES By combining both qualitative and quantitative techniques, the report assesses long term,

sustainable changes in the lives of women, and on other identifiable units of analysis such

as households, organizations, communities. Impact can be either positive or negative but

equally important (Blankenberg, 1995). Standardized data was collected as part of the

Impact Survey while in-depth dialogue with clients and case studies were used as qualitative

tools of assessment.

ASSUMPTIONS

· Those choosing to join the program are similar to existing clients in terms of demographic background, motivation, and business experience and thus offer an appropriate and easily identified comparison group.

· All the data recorded from the survey was recorded as it is without any efforts to verify the statements of the women. Hence, we are assuming that the data provided by the participants is generally accurate and reliable.

A total of 107 (Target group: 57; Control group: 42, 8 profiles rejected for

incomplete/inaccurate data) from a representative set of villages and urban slums of

Gwalior district participated in the survey. The participants were informed of the purpose

and the voluntary nature of our survey which was conducted in Hindi. As mentioned in the

assumptions, the data has not been verified. Thus, there is a risk of inaccuracies due to

problem of recall, insufficient knowledge of the respondent etc.

PROFILE OF SAMPLE POPULATION In a comparative study, ensuring that the target group and the control group have similar

demographic backgrounds (external factors such as age, literacy), business experience and

motivations (both joined VAMA, only the number of months they’ve been a member of

VAMA is different) is important to ensure that these external factors are not biasing the

results.


Fig 02: Slightly older participants of target group

Source: Impact Assessment Survey, 2013

§ Difference in “>40” category could be because clients over 50 are not allowed to form new groups but can continue if already in an existing group § Could bias results in favor of TG as older women

have more experience, more time to develop skills and accumulate assets

Fig 01: Similar levels of literacy for both target and control groups

Target Group Control Group

Source: Impact Assessment Survey

§ Illiterate or primary schooled women: 73% for TG vs. 74% for CG. § No significant bias

expected due to literacy levels

Fig 03: Borrowing from sources other than VAMA

§ Low levels of borrowing from other sources. Respondents depend on friends (part of “Others”) and family members for loans. § Informal money lenders have

not been replaced by VAMA MF even in TG. The TG is reaching out to more diverse sources of finance – banks and other MFIs (Samhita MF) § High and unsustainable

(loan amount > annual income) levels of indebtedness observed in 2 TG households § Average loan size for TG: Rs

7906 (not including two

outliers); CG: Rs. 2967 Source: Impact Assessment Survey, 2013

Target Group

Control Group


Fig 04: Change in income as compared to previous years


§ More TG respondents (22 percentage points) reported increase in income over last year § Indicates economic

success of VAMA’s intervention, or at the very least increased optimism and confidence about income

Table 01: Higher average household and household income/ person for TG

SURVEY RESUL TS AND ANALYSIS

ECONOMIC FACTORS: INCOME CHANGES

VULNERABILITY REDUCTION Diversifying income and vulnerability reduction

In the Bundelkhand region, where there is a period of drought every two to three years,

income from farming and allied activities is especially vulnerable. As such, income from

Average annual

household Income ( )

Average annual household

income per person ( )

Target Group 183441.38 38668.95

Control Group 144119.05 36490.79

Difference 39322.33 2178.16

ECONOMIC FACTORS SOCIO-POLITICAL / CULTURAL

PERSONAL / PSYCHOLOGICAL

§ Income changes § Vulnerability reduction § Asset growth § Outcome of level of

enterprises

§ Change in power relationships (status positions)

§ Shift of economic decision

making from men to women

§ Political empowerment § Women empowerment § Psychological strength due

to financial health and

strength

Factors and variables for measuring impact of microfinance programs


Fig 05: Multiple sources of income reduces vulnerability of TG


§ Both TG and CG have an average of two working members per family, but TG has higher number of sources of income leaving it less vulnerable to shocks

other sources, and more importantly income from multiple sources, becomes especially

important. Even in urban households, an extra source of income reduces vulnerability to

shocks such as the bread-earner falling ill.

Sector of activity Most of workers from both groups are either wage earners or work in the construction

industry. Some of the most popular occupations are constructing roofs, sewing and trading

(small kirana stores). (Appendix 5: Survey Results - Sector of Activity Details)

ASSET ACCUMULATION AND GROWTH

For the target group, 41% of the assets of modest value, 50% of assets of moderate value

and 33% of assets of high value were acquired when they were a member of VAMA

Microfinance. One of the limitations of the survey was not recording other assets such as

cell phones, coolers etc, which were more common to these households than bed with

frame and radios. A more comprehensive survey could also track house and land

ownership.

Household assets ->

Modest Value Moderate Value High Value

Radio, cycle, chair/table,

gas/stove, bed with frame.

Fridge, TV,

Motorcycle

Car / pickup

truck, tractor

Target Group 2.45 / 5.00 1.95 / 3.00 0.03 / 3.00

Control Group 1.75 / 5.00 1.46 / 3.00 0.05 / 3.00

Difference SIGNIFICANT SLIGHT NEGLIGIBLE


Fig 06: Use of Loan from VAMA by TG


§ Loans large enough for working capital to start microenterprises but not for small businesses. Some investment has to come from the client

(distributes risk between lender and borrower).

§ The above chart shows the sector wise use of loan while the adjacent chart shows the purpose of loan. § Several clients have used loans to start,

reinvest in businesses showing the effect of the loan on communities and the local economy

Household Expenses

Food was the most important

component of the household

expenditure for both the target group

(TG) and control group (CG). For the TG,

the second main priority was school

expense followed by clothes. For the CG,

the second highest expense was clothes

followed by school expenses.

Most respondents send their children to

private schools to ensure a better

education.

Impact of Investment The analysis of investment

impact shows that majority of

VAMA borrowers perceived a

positive impact on their

investment. The impact mainly

shows in terms of increase in

income and savings. 65.5% of

22%

14%

20%

2%

13%

9%

7%

12%

0%

26%

19%

17%

4%

13%

6%

4%

11%

1%

Food

Clothes

School Expenses

Health-Related Cost

Household Items

Reinvest in enterprise

Savings

Others

Don't Know

0% 5% 10% 15% 20% 25% 30%

Control Group

Target Group

65.5%70.7%

25%

14.1%

28.1%

6.3%

25.0%

Increase in Income

Increase in Savings

Expanded size of

business

Added new

products

Improved quality of products

Reduced costs by buying in greater volume

Developed a new

enterprise

Microfinance




Fig 08: What clients liked about VAMA’s MF Program

§ Interest rates are perceived to be lower than that of other sources. Clients also like that the loans provide them with a steady source of capital. § “Others” include

disbursement of loan on time, customer services and collection at home.

Fig 07: Significantly higher participation in decision making for TG

§ Women in the TG households have shifted to self or joint decision making. § Small % of this could be

attributed to difference in average age of TG and CG as elders have higher participation in rural households

Target Group Control Group

the respondents have noticed an increase in their income and 70.7% noticed an increase in

their savings.

SOCIO-POLITICAL/CULTURAL FACTORS Change in Power Relationships (Status Position)

Apart from the quantitative data recorded in the survey, it was also observed that women in

the target group were more forthcoming and confident in their conversations with the

interviewer and other figures of authority – an observation that was confirmed with Field

Executives (FEs) and Branch Managers (BMs) alike.

Client Satisfaction Survey Knowing what features current clients value and what they would like to change would help

VAMA design better products and services in the future.

46.6%

39.7%

3%

10.3%

34.5%

12.1%

22.4%

14%

Lower Interest Rates

Steady source of working capital

Group dynamics

Training or assistance

Other financial services

Easier guarantees than loan

alternatives

Others Don't Know


Fig 09: What clients dislike / would like to be changed about VAMA’s MF Program

§ High rates of overall satisfaction with VAMA MF (54% respondents completely satisfied with the program). § Small size of initial and

subsequent loans, different from what was earlier promised is biggest irritant § Some clients feel that

compulsory savings and insurance are forced.

This is a story of how an illiterate, single mother struggled against all odds to work towards her passion. The colorful bangles that now lie before her are testament to her hard work and the life changing impact that a little help can have on the lives of women like her. She is a source of inspiration for women in her community and has successfully advised other women on their finances and for starting new businesses (Appendix 7: Detailed description of in-depth interview with Badami)

Badami (55 years), Madhav Nagar, Gwalior.

§ One of the oldest clients of VAMA’s MF Program § Head of her nine

member household § VAMA’s loans have

helped her successfully start her own bangles selling business and save more than Rs. 10,000. § She now dreams of

owning a fridge and building two additional

rooms in her house.

Microfinance Case Study: Badami, Anmol Joint Liability Group

3.4%

17.2%

3.4% 3.4% 1.7%

12.1%

53.4%

13.8%

High interest

Size of loans too

small

Loan cycle too short or

long

Meeting frequency too often

or meetings too long

Forced savings or insurance

Others Nothing Don't know


E. DEVELOPMENT PROGRAMS AND CONCLUDING REMARKS DEVELOPMENT PROGRAMS: FINANCIAL LITERACY A group of 20 women were interviewed about their experience with the financial literacy

program. Most women said that they were not able to save and that the program had no

impact on their financial habits. Some were too shy to answer our questions.

DEVELOPMENT PROGRAMS: AASHA TRAINING Aashas were satisfied with the training program and did not have any complaints and nor

could they suggest any changes for the better. They pointed out that the extra income and

more importantly, the respect that they get from their communities is the main reason why

they continue to work as Aashas. Trainers reported that even illiterate women (generally

about 8% of the trainees were able to become Aashas through support network of their

families and neighbors (asking others to record, especial attention given to these women

during training). The trainers felt the need for more regular training to reinforce concepts.

The Women’s Day Celebration, though a step in the right direction was also plagued with

several problems such as poor organization (guest speakers cancelled at the last minute,

women had to wait for hours in the sun for the program to start; a significant proportion of the

event was taken up by a single woman promoting a certain religion which had no bearing on

women’s issues).

CONCLUDING REMARKS POSITIVE IMPACT

As gleaned from our in-depth interview with Badami, successful women play a key role in

their communities – they encourage other women to start new businesses, to cut down on


unnecessary expenditures etc. Also, as the primary decision makers in their households,

they act as role models in their respective communities.

NEGLIGIBLE / POSITIVE IMPACTS

Turning to moneylenders or friends and family would not end because of the microfinance

program (since the money lenders offer convenience and often larger size of loans). The

unsustainably higher levels of indebtedness as reported by two of the TG respondents can

push these clients into a cycle of debt. VAMA’s microfinance program generally caters to the

low-income households, and not poor households (as observed from reported household

level incomes).

The beneficial impact of VAMA’s work in the social development field is not as visible due to

the problems mentioned before.

RECOMMENDATIONS

Based on our findings from this report and our observations from field visits, the following

actions can be considered to improve VAMA’s Microfinance Program.

1. FINANCE AND FUNDRAISING

Rationale: At the core of the problem of the microfinance programs, is lack of access to a

steady flow of funds. The microfinance program is not self-sustaining, as in new loans

cannot be generated based on just the repayments and the current savings accounts of the

members. The Andhra crisis has resulted in a shortage of funds flowing to microfinance

programs pressurizing growth of VAMA’s MF portfolio, especially since 2009. As can be

observed from the Client Satisfaction Survey, most of the dissatisfaction stems from the loan

size. VAMA has taken a conscious decision to use their limited funds to increase outreach

rather than increase loan amount (in group meetings, a gradual increase is promised to the

client per cycle depending on good group behavior and timely repayment).

For securing additional funds, most of the work is done by the Executive Secretary, Mr Indra

Bhushan Verma who also handles VAMA Group of colleges, the Programmes Unit and

oversees operations and other functions of the organization.

Solution: Since fundraising is an important and time-consuming activity, one that is currently

constraining the growth of VAMA and contributing to higher levels of dissatisfaction (both MF

and Programmes), appointing a dedicated fundraiser for the organization would add more

value as compared to the cost.

2. Performance Management System

Rationale: From discussions with branch managers (BM) and field executives (FE), we

discovered that FEs can without much effort achieve the current targets of securing five new


client groups per month. The high demand and the strong brand image and word to mouth

marketing results in groups approaching the office themselves. Several women from the

newly formed groups complained about the delay in starting the group. FEs are often unable

to handle the number of requests for group formation.

Solution: For these reasons, we recommend establishing Key Performance Indicators (such

as number of new groups formed; collection time rather than just the portfolio size and

number of groups serviced) for Field Executives and providing additional incentives such as

increments in salary etc based on these indicators. This would arrest the high rate of attrition

in the organization, especially at the lower levels. Also, it would motivate the field executives

to reach out to more clients, and improve the overall client experience and lifetime value.

3. Adopting good business practices

Rationale: Two children under 14 years of age were being employed as office attendants.

For an organization that claims to work towards the elimination of exploitation of vulnerable

sections, it is absolutely unacceptable that child labor is employed. Moreover, one of these

employees was not being paid on time (salary outstanding for three months). Also, the

internal auditing is done by a relative of a member of the board.

Solution: Though cost cutting is an important priority for a perennially cash strapped

organization, fair employment conditions are a must. Independent audits reduce the chances

of an unbiased picture of the health of an organization

4. Business Development Services

Rationale and Solution: Currently, VAMA leverages on its brand (developed through the

ongoing social development programs in the area). Some existing programs such as

Financial Literacy modules can also be offered to existing clients to strengthen the overall

microfinance program. This would also help address early on the problems with clients with

high and unsustainable levels of indebtedness. VAMA is also considering partnering with

INBAR and other NGOs in the area to promote alternative income-generating activities such

as bricket making (from residual ash of chulhas). As observed from the survey data (sector

of activity, use of loans), several women in an area are pursuing similar income-generating

activities. As such, providing them with technical training etc can benefit these clients

enormously.


Retail Financial Services · Consumer Loans

· Savings Product

· Insurance Products

Greater coordination (staff hours, funds) would be required between the Programmes and

the MF Unit.

5. Document Management System

Rationale: Some of the key documents of the organization such as the business

development plan and the operations manuals have several contradictions and

discrepancies in the data. Information such as target number of clients and new processes

need to be communicated in a consistent and clear manner.

Solution: As such, all documents need to be regularly updated with key information and

other data points such as “Last updated”, “Prepared by” and “Reviewed by”.

6. Outreach and increase of loan amount

Rationale: As mentioned previously, the outreach targets per FE are not ambitious enough

to be able to reach the goal of 50,000 active clients

The results of this survey showed that 32% and 21% of the target group and control group

respectively received credit from sources other than VAMA MFI. VAMA should increase its

efforts to reach out to clients and to increase the loan amount given to individual clients.

7. Development of new products

A wider product portfolio such as insurance and emergency loans (would further reduce

vulnerability of clients to shockc) addressing the needs of the clients – both existing and

future, can help both VAMA and the clients. VAMA should consider conducting feasibility

studies on the development of insurance and leasing products.

8. Enhancing of operational capabilities

In order to increase client volumes, managing larger loan portfolios and to introduce new

products, VAMA’s operational capabilities have to be enhanced. The productivity of loan

Business Development Services

· Financial Literacy

· Business Training /Technical Assistance

· Access to markets

· Bank Linkages

Microfinance Microenterprise Development


officers need to be enhanced through training and incentive programs. The current cost

structures need to be reassessed to allow for competitive pricing. Staff training on MIS

system is also needed to ensure higher productivity and internal control.

9. Measurement of Effectiveness

As observed in some programs, the beneficiaries are not getting the desired benefit from the

intervention. A periodic review and measurement of effectiveness of development programs

through both quantitative and qualitative techniques, would help track the impact of the program.

F. INDIVIDUAL CONTRIBUTION

Though all the work – including field visits, meetings, report writing – was done as a team, I

would like to highlight the following areas of my contribution to this project:

§ Interviewed VAMA’s field executives and Bank of India’s Branch correspondent –

Narayana Singh Rana about financial literacy modules and bank linkages program

§ Prepared rough structure of questions for the in-depth interview with Badami Bai,

whose success story is highlighted in the report.

§ Helped design impact survey questionnaire based on AIMS (Assessing the Impact of

Microenterprise Services) – SEEP (Small Enterprise Education and Promotion)

Network Manual. Revised questionnaire as per suggestions of the NGO.Surveyed 40

women participants (20 TG, 20 CG) from urban slums and villages on the outskirts of

Gwalior district.

§ Attended all field visits and took notes and transcripts for interviews and on the field

observations.

§ Addressed a gathering of around 50 women on issues regarding education and

women empowerment at the International Women’s Day program in Raura village.

§ Designed questionnaire for and interviewed Aasha trainees and trainers at Datia

district

§ Along with my fellow team mate, I presented our preliminary findings from the impact

survey results to Mr.Dr. I. V. Ramanuja Rao, Programme Director, INBAR, Mr. Bharat

Parekh, Programme Officer, INBAR, officials from NABARD and several other NGOs

from the state.

§ Training Needs Assessment Form


REFERENCES § Internal Documents from VAMA:

o VAMA Annual Report 2011-2012 o VAMA Operations Manual o VAMA HR Manual o VAMA Accounts Manual o VAMA Strategic Business Plan 2012-2017 o Financial Progress Monthly Report o Operational Progress Monthly Report o SMERA MFI Rating report September 2010 o CRISIL Microfinance Grading Report August 2009

Publicly available data can be accessed at <http://vamaindia.org/>

§ “State of the sector report 2011”; Microfinance India; Accessed on March 2013;

<http://www.microfinanceindia.org/download_reports/sos_2011.pdf>

§ Microfinance Impact Assessment and Market Research Survey-UNRWA – Microfinance Department – Syria

§ M-CRIL Microfinance Review 2012: MFIs in a Regulated Environment § Microfinance Market Survey in the West Bank and the Gaza Strip conducted by

Planet Finance § Microfinance and Poverty Alleviation: An Impact Assessment Survey By RBS

Foundation § “Learning from Clients: Assessment Tools for Microfinance Practitioners, The SEEP

Network”; Accessed on March 2013; < http://pdf.usaid.gov/pdf_docs/PNACJ138.pdf>

Appendix 1. Breakup of staff by job positions

Staff Strength: 40 (as of 31 March 2012) § CORE TEAM (2nd line management) - 06 § MIS and ACCOUNTS (Office level management) - 06 § Program support staff and Project staff - 10 § Field Executives - 12

§ VAMA Group of College Faculty - 06


List of Programs and activities for 2012


Appendix 4: Details of Field Work Executed

No. Days Area Details

1 3 Kale Kar Bai Ki Goth Tehsil, Gwalior District.

Observed group formation process for 3-4 groups in urban slums

2 2 Morar District Observed collection process for 10-15 groups 3 1 Kale Kar Bai Ki Goth

Tehsil, Gwalior District. Followed the same group for group recognition test with Branch Manager, Deepal Malhotra and Field Executive, Punita.

4 1 Morar Field investigation process with Branch Manager, Deepal Malhotra and Field Executive, Madan

5 1 Raura village, Gwalior Women’s Day Event – Were guest of honor and main speakers. Creating awareness on female feoticide.

6 1 Datiya Aasha training. Observed training process. Talked to five trainees, three trainers and VAMA officials in charge of the five-day residential training program.

7 1 Dabra Financial Literacy program. In-depth interviews with a group of 20 women and VAMA field executives in charge of the program

8 1 Berja Interview with Branch correspondent of Bank of India, Berja branch

9 1 Veerpur Girwai In-depth interview with Badami Bai 10 4 Shreeja: Around 20

urban slums in and around Gwalior and Morar district

Impact Assessment Survey – 40 respondents.(20 target group, 20 control group)

11 4 Noorain: Around 20 urban slums in and around Gwalior and Morar district

Impact Assessment Survey – 40 respondents.(20 target group, 20 control group)

12 1 VAMA, Gwalior Office Disbursement process

13 2 VAMA, Gwalior Office Attended two day seminar by INBAR on financial security of NGOs and rural livelihood generation and presented findings of our impact survey. Bharat Parekh – Country Head INBAR

Appendix04: Tools for data collection

Tool

§ Microfinance Impact Assessment Survey

§ Social Security Survey

§ Asha Questionnaire

§ Financial Literacy Questionnaire

§ MFI Questionnaire

§ Audio of the interview with Ms.Badami


Appendix 6: Survey Results – Sector of Activity Details

Appendix 7: Detailed description (edited transcript) of in-depth interview with Badami

Badami’s husband left her and her two sons very

early on, leaving her to fend for herself and her family.

She worked in an industry as a labour, earning 50

per day for working more than 12 hours. It was hard

work and the long commute and work hours left her

with very little time with her family. In this time of need,

her father built a house for her and her family – the

one in which she still lives. Though she was very

grateful for the help that she received from her family,

she did not feel comfortable in continuing to depend

on them.

With the meager earnings her family struggled to meet ends and soon her two sons had to

drop out from school – having studied only till classes 5th and 7th. They started working as


daily wage earners for constructing roofs. She regrets that she was not able to afford a

better education for her sons but says that it was a necessary step to ensure the welfare and

survival of her family.

It was in 2006 – when VAMA’s Microfinance program was just being launched - that Badami

heard about the organization and its work from Bharti, an Aanganwadi worker from her area.

Soon she joined several other women in her community to form a self help group – Anmol.

She had never taken a loan from any other source before, so this was a novel experience for

her.

She received her first loan of 5000. Badami had always wanted to open a bangles’ shop

but realized that the current loan amount was too little for starting this business. So she used

her first loan to do sewing work, working diligently to pay back the installments and

accumulate some savings. With her savings and a second loan of 10,000, she was able to

open a bangles’ shop. Her business grew steadily and she her business generates a profit of

2500 per month. With the third loan of 15000, she bought more materials for her shop.

She sets up shop (on a thela rented for 20 per day) only three or four times a year – on

days of major festivals such as Diwali and KarvaChauth and as and when local melas are

organized. She is able to sell the other bangles from her home itself as many women come

to her to buy bangles. She is thus able to spend the entire day with her family and especially

cherishes the time spent with her grandchildren. Her daughter-in-laws help around with

household chores and do sewing work while her sons now have their own business for

constructing roofs.

She remembers a time when she did not have any assets besides her house. With her

increased income, she was able to buy a television, a cooler and a fan. Though her own

sons, as victims of circumstance, could not finish school she has ensured that her grandsons

get the very best of education. They now study in a private school. She has more than

10000 of savings in a Post Office account.

She has talked to many women in her community about the benefits of taking such a loan

and of savings. Women look up to her and have often come to her for advice and for help.

She encouraged and advised another woman in her neighborhood, who has now started a

successful vegetable store.


She now dreams of owning a fridge and building two additional rooms on the roof of her

house.

Appendix 5: Contact details of people and organizations interacted with during DOCC

project work

Sr. No. Name Designation & Organization

1 IndraBhushanVerma CEO, VAMA

2 Nilofer Khan COO, VAMA

3 SarveshDhingra Finance Manager, VAMA

4 Deepak Malhotra Branch Manager, VAMA

5 Shanno Khan ABM, VAMA

6 MadanKushwaha ABM, VAMA

7 Dr. I. V. RamanujaRao Programme Director, INBAR

8 Bharat Parekh Senior Programme Officer, INBAR

9 Narayan Singh Rana Branch Coordinator, Bank of India


LIABILITIES

2011/12 2012/13

1 Share Capital (Schedule 1)

Upto Last Year 7225067.98 9307325.13

During Current Year 0.00 2243.00

LESS Share withdrawn 0.00 25195.00 9284373.13

2 Security Deposits (Schedule 2)

Upto Last Year 0.00 0.00


LESS Withdrawals 0.00 0.00 0.00

3 Savings with MAC (Schedule 3) 0.00 0.00



LESS Savings Withdrawn 0.00 0.00 0.00

4 Outstanding Borrowings (Sch 4)

Upto Last Year 34096044.69 24526399.46

Borrowings Current Year 11959108.73 4918875.00

LESS Amount Repaid 21528753.96 13264741.73 16180532.73

5 Short Term Borrowings

Upto Last Year 1069108.00 1505181.00

Borrowings Current Year 4477997.00 1930633.00

LESS Borrowings Returned 4041924.00 4183293.00 -747479.00

NET SURPLUSES 2082257.15 380433.00

35338905.59 25097859.86

ASSETS

2011/12 2012/13

1 Share Capital


Share Paid up Current Year 0.00 0.00 0.00

2 Deposits

Upto Last Year 1770118.00 1860665.69


LESS Saving Deposit Refund from ASP 100000.00 547134.00 1384077.69

3 OS Loans with Members (Sch 5)

Upto Last Year 26916616.00 17103696.00

Current Year Loans 32897897.00 13392662.00

LESS Repayments 42710817.00 21032776.00 9463582.00

4 Advances Outstanding

Upto Last Year 5142379.00 4094884.00

Advances Current Year 6060568.00 9061029.87

LESS Advances Recovered 7108063.00 5539650.74 7616263.13

5 Fixed Assets (Schedule 6)

Upto Last Year 6363634.25 6100566.20

This Year 51745.00 85036.74

LESS Depreciation 314813.05 114327.00 6071275.94

6 Closing Balance

Cash on Hand 2395847.00 4159.00

Bank Balance 3783246.70 392668.10 396827.10

35338905.59 24932025.86


LIST OF PROJECT FUNDING BY THE DIFFERENT AGENCY S. No

Name of Funding Agency

Ref. on Sanction letter date Amount Sanction

Amount Released

Status of the project

1

CIDA (ICCCO) 38-17-1-39 (GEF) Dated April 30.2001

10,99,628.00

10,89,664.00

SAMARTH “Women’s Empow erment prog.”2 year Program started in April 2001 and completed in march 2003

2

NABARD

ND.BPL/MCIC/11925/SHSGs. 21/2000-01.Dated 14 March 2001

2,25000.00

2.22500.00

SHG “Bank Linkage Program “2 year Program started in April 2001 completed in march 2003

3

IGSSS

SP/142 (MP-11) 02.W-17/48 Dated 09.08.2002

5,87,100.00

5,87,100.00

Community Development Program. 6month started in October 2002 and completed in march2003.

4

WATER-AID

#3090 and WAI No. 335 Date20 January 2003

7,69,437.00

7,69,437.00

AABHAS “Water & Sanitation Program” one year Program started in April 2003 and completed in March 2004.

5

NEG

NEG/MP/(186)/1246 March 22,2002

3,52,650.00

3,52,650.00

DASTAK Innovative pilot project on primary education started in April 2002 completed in March 2003.

6

SPK&SS, New Delhi RCH Project

Ref No./786/SPK& SS/RCH/SCOVA-111/GWI. Dated 20.04.2002

3,19,423.00

3,19,423.00

Reproductive & Child health programme.”3 year Program started in April 2002.

7

FORRAD

F-137/2000- Projects (30) dated 02 November 2000

2,40,000.00

2,40,000.00

Community Land Development Program started in November 2000 and completed in April 2001

8

BUTTERFLY

BF/NRWWS/190/01 DATED 07/08/2001

45,000.00

45,000.00

Published Bal News Paper 3 volumes published completed in March 2002

9

NCSTC (DST)

CO/TR/528/98 Dated 11/01/99

59,100.00

59,100.00

Workshop on explaining Miracle for rural youth started on 25/07/99 and completed on 14/08/99

10 CAPART WSD/MPR/ 17/10/1998 Dated 4 March 2004

56,28,817.00

22,74,158.00

Community Watershed Management On-Going

11 WATER-AID #3090 and WAI No.335 Date 20 January 2004

10,24,317.00

10,24,317.00

AABHAS “Water & sanitation Program” ONE-YEAR extension, completed in June 2005.

12 SIDBI BHBO/126-27 /SFMC/ VAMA/LOAN 24.12.2008

50,00.000 TL 5.90,000 Grant 50,00,000 Tl

50,00,000 5.90,000.00 50,00,000

Fund for empowerment of SHGs

13 CARITAS,INDIA Women empow erment through Skill development

46,500.00 46,500.00 Ghatigaon block of Gwalior dist.

14 CARE -CASHE Micro-f inance Institute 5,44,328.00 5,44,328.00 Working in Gw alior dist. As a Micro f inance Institutions w ith local banker and SHGs groups.

15 DFID (PACS) Violence against women 42,00,000.00 42,00,000.00 As a Lead NGO w orking in Vidisha and Sagar Dist. With the support of 4 nos. FNGOs

16 MNGO Reproductive & Child Health

Govt. of India, Ministry of Health and Family Welfare

15,00,000.00 approx.

2,00,000.00 As a mother NGO w rking in Datia district.

17- CARE -CASHE Micro-f inance Institute 3,62,000.00 3,62,000.00 Working in Sagar & Vidisha dist. As a Micro f inance Institutions with local banker and SHGs groups.

18 FWWB, AHMEDABAD

Micro-f inance Institute 2,30,00,000 2,30,00,000 Fund for empowerment of SHGs/JLGs

19. ICICI BANK LTD Micro-f inance Institute 30,00,000.00 30,00,000.00 Revolving fund for empowerment of SHGs

20. State Bank of INDIA Micro-f inance Institute 100,00,000.00 100,00,000.00 Revolving fund for empowerment of SHGs/JLGs

21. CARE-RLF Micro-f inance Institute 50,00,000.00 30,00,000.00 Revolving fund for empowerment of SHGs/JLGs

22. MPSACS F/AIDS/TI/NGO/09/01-07 dated 02-01-2009

12,27,800.00 12,27,800.00 Targeted Intervention Project among Female Sex Workers

23 Manaveeya Holding Sanction Dt. 10-09-2009 1,00,00,000 1,00,00,000 Fund for empowerment of SHGs/JLGs

24 IDBI Bank Sanction Dt. 23-06-2010 50,00,000 50,00,0000 Fund for empowerment of SHGs/JLGs

25 Indian Bank Sanction Dt. 23-06-2010 25,00,000 25,00,000 Fund for empowerment of SHGs/JLGs

26 CASA April 2010 18,00,000 18,00,000 Reinforcing women for sustainable livelihood in morar block of Gwalior district

27 MPSACS BHOPAL April 2010 to Jan 2011 185,354 185,354 Targeted Intervention Project at Mandsour

28 MPVHA (Save the Girl Child)

April 2010 to Jan 2011 25,000 25,000 Movement against declining female sex ratio in district Gwalior

29 RMK Feb 2011 75,00,000 75,00,000 Fund for empowerment of SHGs/JLGs


Performance Indicators Up to Dec -12 13-Jan Cumulative

Outreach

No of State 1 1 2

No of District 1 1 2

No of Block 2 2 4

No of Branches 1 1 2

No of Villages 189 189 378

No of Semi urban Location 47 47 94

No of SHG's/JLG's/Grameen/Others (Specify Group Type SHG/JLG)

777 778 1555

No of SHG's/JLG's /Grameen/Others (Specify Members Type SHG/JLG Members)

3829 3734 7563

Credit Operation

Total Disbursal Amount 2555000 1,828,000.00 4,383,000.00

Disbursement % Achieved as per B.P

Average Loan Size 9941.634241 11,078.79 10,386.26

Total Disbursal Group (Specify Group Type………………………………..)

0 778 778

Total Disbursal Members (Accounts) (Specify Members Type……………………….)

257 165 422

No of Active Loanee 1256 165 1421

Loan Outstanding Amount to Field 8957129 9,463,615.00 18,420,744.00

No of Loan/Field Officer 5 4 9

Loan Outstanding/Loan Officer 1791425.8 2365903.75 2046749.333

Overdue Status (Overdue Amount/No of Overdue Account)

Overdue Amount of Less than 30 days 2666 5166 7832

Overdue Members of Less than 30 days 3 2 5

Overdue Amount of Less than 60 days 1833 1833 3666

Overdue Members of Less than 60 days 2 2 4

Overdue Ammount of more than 90 days 1000 1000 2000

Overdue Members of more than 90 days 1 1 2

Overdue Amount of more than 120 days 43073 48345 91418

Overdue Members of more than 120 days 10 5 15

Demand/Collection Status

Demand Principal 1304147 1,300,460.00 2,604,607.00

Principal Collected (Excluding prepayment) 1301484 1,295,294.00 2,596,778.00

Prepayment Collection 17166 18,922.00 36,088.00

Demand Interest 177117 191,357.00 368,474.00

Interest Collected 169214 182,787.00 352,001.00

Current Repayment Rate (In %) 1470696.841 1478079.732 2948777.786

Overdue Pricipal Amount 58117 58117

Saving

Total Saving Amount 0 0

External Borrowing (Agency Wise)

1 State Bank of Inda 5000000 5,000,000.00 10,000,000.00

2 SIDBI 5000000 5,000,000.00 10,000,000.00

3 Ananya Finance for Inclusive Growth Pvt. Ltd. 23000000 23,000,000.00 46,000,000.00

4 Indian Bank 2500000 2,500,000.00 5,000,000.00

5 Rashtriya Mahila Kosh 7500000 7,500,000.00 15,000,000.00

6 BASIX-LAMP Fund 7500000 1,500,000.00 9,000,000.00


External Outstanding (Agency Wise)

1 State Bank of Inda 229385.73 220,389.73 220,389.73

2 SIDBI 1668000 1,549,000.00 1,549,000.00

3 Ananya Finance for Inclusive Growth Pvt. Ltd. 1944644 1,805,755.00 1,805,755.00

4 Indian Bank 1363198 1,405,388.00 1,405,388.00

5 Rashtriya Mahila Kosh 5638063 5,300,000.00 5,300,000.00

6 BASIX-LAMP Fund 5638063 1,500,000.00 1,500,000.00

Source: Operational Performance Report, VAMA


VAMA (Bal-MahilaVikasSamiti) 9-C, MaharanaPratap Nagar,

Near Jiwaji Club, Gwalior- 474009 Madhya Pradesh,

INDIA Telephone: +91-751 2457438 Email: [email protected]

[email protected] Website: www.vamaindia.org.

Bal-Mahila Vikas Samiti : VAMA impact study of Micro Finance initiatives by SPJIMR

Government & Nonprofit

Transcript of Bal-Mahila Vikas Samiti : VAMA impact study of Micro Finance initiatives by SPJIMR