CONTENTS

TITLE Page No.

INTRODUCTION 3-6

Objective of the study 7-8

Research Methodology 9

About Saahasee 10

Data Preparation 11

Summarizing Data and Statistical analysis 12 - 20

Implications of the study 21

Suggestions 22

Conclusion 23

Bibliography 24 - 25

Appendix I
Questionnaire given to the participants 26 - 28
Response to the Questionnaire given to representatives of Saahasee 29 – 36
Appendix II
Saahasee Model I - IV
Case study V – VII
Training Programmes organized by Saahasee VIII

1
 ACKNOWLEDGEMENT

I am indebted to each and every individual who helped me in many ways in the
preparation of this Minor Research Project titled “Impact of Microfinance with
respect to poverty alleviation and socio- economic empowerment of urban women- an
empirical analysis”.
I express my gratitude to the authorities of Mumbai University, for providing me an
opportunity to do the Minor Research Project. I am grateful to the Management,
Principal Dr.Ajit Singh and teaching and non-teaching staff of our College,
G.N.Khalsa College of Arts, Science and Commerce, Matunga, for the support,
encouragement and guidance extended to me.
I express my heart-felt thanks to the members of my department, Dr.S.A.Ajgaonkar
for helping in the translation of the Questionnaire, Library staff of our college and
TISS, Mumbai for their valuable suggestions and support.
I express my sincere thanks to Mr.Eddie Mall, Executive Director - SAAHASEE,
Ms.Poonam Nair, Sr.Manager and other volunteers of Saahasee for their help and co-
operation.
I owe a great deal of regards and gratitude to my mother –in-law, husband,
daughters, family members, friends and my entire student community for their
encouragement and support all through the project.

2
INTRODUCTION

Professor Muhammad Yunus, founder and managing director of Grameen Bank, said
that if an institution could make financial resources available to the poorest people in
Bangladesh, then "these millions of small people with their millions of small pursuits
can add up to create the biggest development wonder." He and Grameen Bank believe
that credit should be a human right. Building on our rich Grameen Bank heritage,
Grameen Foundation is a leader in making microfinance work harder to help more
people progress out of poverty.
Microfinance is a proven tool for fighting poverty on a large scale. It
provides very small loans, or micro-loans, to poor people, mostly women, to start or
expand very small, self-sufficient businesses. Through their own ingenuity and drive,
and with the support of the lending microfinance institution (MFI), poor women are
able start their journey out of poverty.
Unlike commercial loans, no collateral is required for a micro-loan and
it is usually repaid within six months to a year. Those funds are then recycled as other
loans, keeping money working and in the hands of borrowers. For example, a woman
could borrow some amount to buy some raw material for producing some garments,
sell it and gradually expand her level of activity and at a later stage have her own
distribution network. As a borrower, she receives training, advice and support from
the MFI that issues her loan, and support from other borrowers just like her. Studies
have shown that women use the profits from their businesses to send their children to
school, improve their families’ living conditions and nutrition, and expand their
businesses. The fruits of their businesses not only make an impact on themselves and
their families, but entire communities. Some MFIs also provide social services, such

3
as basic health care for her and her children. Microfinance clients boast very high
repayment rates. MFIs are very client-focused. Some MFIs go directly to the
borrower’s place of business to issue loans and collect payments. Other MFIs host
weekly borrowers’ meetings at the local center where the transactions and other social
services take place. During these center meetings, borrowers empower each other to
stay on the path out of poverty by sharing successes and discussing ideas for solving
business and personal problems.

Microfinance programs are funded by loans, grants, guarantees and

investments from individuals, philanthropists, social investors, local banks,
foundations, governments, and international institutions. Microfinance programs have
been increasingly promoted in India for their positive economic impact and the belief
that they empower women. Within the South Asian context, women empowerment is
a process in which women challenge the existing norms and culture, to effectively
improve their well-being. Most microfinance programs target women with the explicit
goal of empowering them. However, their underlying premises are different. Some
argue that women are amongst the poorest and the most vulnerable of the
underprivileged. Others believe that investing in women’s capabilities empowers them
to make choices, which will contribute to greater economic growth and development.
Finally, some proponents emphasize that an increase in woman’s resources results in
higher well-being of the family, especially children.

Naila Kabeer defines women’s empowerment as the process by which

those who have been denied the ability to make strategic life choices acquire such
ability. This ability to exercise choices incorporates three inter-related dimensions:
resources which include access to and future claims to both material and social
resources; agency which includes the process of decision-making, negotiation,
deception and manipulation; and achievements that are the well-being outcomes.

4
 The interpretation of women’s empowerment and its measurement
varies across studies. Most researchers construct an index/indicator of women
empowerment. However, measuring women empowerment by constructing indices is
an inappropriate technique as it allows the use of arbitrary weights.

Most researchers, for instance, will agree that impact of a women’s

decision to buy cooking oil for the family is different in nature from her participation
in a decision to buy a piece of land. Both these decisions have different implications
and magnitude of impact on her empowerment. As such giving equal weight to both
these decisions does not make sense. At the same time, suggesting an arbitrary weight
for these decisions is also inappropriate, as it is not for the researchers to decide the
factor by which the latter decision contributes more to women empowerment.

Other studies use decision-making power, and participation in

household and societal decision making as factors determining women empowerment.
These studies have found that credit programs allow women to take a greater role in
household decision making; to have greater access to financial and economic
resources; to have greater access to financial and economic resources; to have greater
social networks and more bargaining power vis-à-vis their husbands; and to have
greater freedom of mobility.

A woman’s practical needs are closely linked to the socially defined

gender roles, responsibilities, and social structures, which contribute to a tension
between meeting women’s practical needs in the short-term and promoting long-term
strategic change. By helping women meet their practical needs and increase their
efficacy in their traditional roles, microfinance may in fact help women to gain respect
and achieve more in their socially defined roles, which in turn may lead to increased
esteem and self-confidence.
5
 Although increased self-confidence does not automatically lead to
empowerment, it may contribute decisively to a woman’s ability and willingness to
challenge the social injustices and discriminatory systems that they face. This implies
that as women become financially better-off their self confidence and bargaining
power within the household increases and this indirectly leads to their empowerment.
Finally, given that empowerment is a process, the impact of the microfinance program
may take a long time before it is significantly reflected on the observable measures of
women empowerment.

6
Objective of the study
The main objective of Micro finance is economic development and
improvement in the status of the low income group (Doney et al., 2005) A Secondary
objective of well being of the low income group is also aimed. A small loan, a savings
account or an insurance policy can make a great difference for a low income family.
They enable people to invest in better nutrition, housing, health and education for their
children (UN, 2006). Activities contributing to well being, like reduced child labour,
and increased women empowerment can be the outcome of Microfinance.

Poverty is a multifaceted phenomenon and can be characterized in terms of the lack of

one or more of the following:

1. Entitlement to food and other basic necessities.

2. Access to public provision of economic, social and human infrastructures.

3. Credit, opportunities for income generation and Consumption stabilization.

4. Empowerment in both private and public resource allocations.

5. Access to a social security net and other resources that help household withstand
natural and other shocks, thus safeguarding the very existence of life and families.
(Khandker, 2001)

Therefore, the extent of poverty alleviation is not defined by the access to credit or
other financial services, rather, how is the receiver able to utilize those services to
generate sources of revenue.

Micro financing aims to alleviate poverty by stimulating economic

growth through entrepreneurial initiative (Khavul, 2010). But for this to be successful,

7
awareness and capability of the receiver is of utmost importance. As per the UN blue
book, for financial inclusion, financial services combined with financial literacy and
other skill building techniques is imperative.

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; its strength, an 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.

In India, the trickle down effects of macroeconomic policies have

failed to resolve the problem of gender inequality. Women have been the vulnerable
section of society and constitute a sizeable segment of the poverty-struck population.
Women face gender specific barriers to access education, health, employment etc.
Micro finance deals with women below the poverty line. Micro loans are available
solely and entirely to this target group of women. There are several reason for this:
Among the poor , the poor women are most disadvantaged –they are characterized by
lack of education and access to resources, both of which is required to help them work
their way out of poverty and for upward economic and social mobility. The problem
is more acute for women in countries like India, despite the fact that women’s labour
makes a critical contribution to the economy. This is due to the low social status and
lack of access to key resources. Evidence shows that groups of women are better
customers than men, the better managers of resources. If loans are routed through
women, benefits of loans are spread wider among the household.

8
RESEARCH METHODOLOGY
In the present study “Impact of Microfinance with respect to poverty
alleviation and socio- economic empowerment of urban women- an empirical
analysis” information has been collected through a questionnaire, personal interaction,
observation and visits. Data has been collected from the office bearers of Saahasee, a
registered Indian national NGO working for the development of the urban poor and
also from 300 members selected using random sampling method. Saahasee Thane
community federation women from the slum areas of Ambewadi, Tikkri pada, Ram
Nagar, Lokmanya Nagar, Kisan Nagar and Bhandup have been selected. An
attempt has been made to study the impact of the intervention strategy adopted by
Saahasee on the community not only in terms of financial stability and women
empowerment but also on the social transformation that has been achieved through
such efforts. The questionnaire was prepared in English language and then translated
into Marathi for the benefit of the participants.

Questions covered four aspects –

1. Personal details relating to age, size of the family, whether employed and
nature of employment, asset ownership before joining Saahasee and after.
2. Savings contribution, details relating to Loan availed, sources of loan,
investment pattern.
3. Nature of activity undertaken, Reason for taking this activity, Fund gap
Sources etc.
4. Role played by Saahasee in improving their welfare and suggestions for
improvement.

9
About Saahasee
The women of our slums and resettlement colonies face overwhelming odds in
continually working towards the betterment of their children, family and community.
Their ‘Courage’ to overcome these odds has been a source of ‘new hope’ for
thousands of women in similar situations. This experience has gathered momentum
and emerged as a new found entity, which has been named - SAAHASEE.

This organization has been actively engaged in participatory community development

among a total slum population of close to 300,000 people. Presently they are working
in the slum communities of Mumbai, Thane, Bhiwandi, and Pune in Maharashtra and
resettlement colonies of New Delhi.

SAAHASEE focuses on sustainable empowerment of women and Children in slum

families and communities’ .Their approach has been to organize slum communities
through establishing small self help groups among slum women and build their
capacities towards their development in a structured manner. These women who
represent their families identify local community problems and work together linking
with various stakeholders to address the real needs of their slum communities.

SAAHASEE’s intervention strategy involves Five Levels:

Level 1 – Formation stage (0 -2 years)

Level 2 - Consolidation stage (2 -3 years)

Level 3 - Expansion stage (3 -5 years)

Level 4 - Transference stage (5 – 7 years)

Level 5 - Governance stage (7 – 9 years)

From the group formation process till the takeover by the community, the
community based organizational structure has been included in the Appendix II.

10
Data Preparation
The study pertains to the population of slum women of Thane community Federation
women from the slum areas of Ambewadi, Tikkri pada, Ram nagar, Lokmanya nagar,
Kisan nagar and Bhandup.

 Responses to question number 12,13,14,25,34,35, 46,47, are regarded as single

response questions and being mutually exclusive the coding was done
depending on the number of options as 1,2,3,…..

 Since question number 2, 3, 5,10,16,17,22,23,38, were dealing with scale

variables the data was entered directly.

 Responses to question number

6,8a,8b,8c,11,12,15,21,24,26,28,29,30,31,32,33,36,37,39,40,41,42,43,45,48,49,
50,51,52 are labeled as 1 for Yes and 0 for a No response.

 In the data view new columns are created relating to the Asset position before
joining Saahasee and asset position after joining Saahasee.
Two columns relating to total asset defined as the sum of the codes given in
question number 12 before joining Saahasee and after joining Saahasee are
included.

11
Summarizing Data and Statistical Analysis

Wilcoxon T Test
The Wilcoxon Signed-Rank Test is the nonparametric test used when we wish to
compare two sets of scores that come from the same participants. This can occur when
we wish to investigate any change in scores from one time point to another or
individuals are subjected to more than one condition. As the Wilcoxon Signed-Ranks
Test does not assume normality in the data it can be used when this assumption has
been violated.
In our study we try to compare the status of the participant in terms of asset ownership
before joining Saahasee and after joining Saahasee.We formulate a Hypothesis that
there is no significant difference in status of the participants before and after joining
Saahasee. At the beginning of the study, we ask the participants to rate various
questions which have been included as constituting the assets of the family.
Family assets
i) Land holding yes No
ii) Housing 1.Type of house: Hutment / chawl /building
2. Housing status: own / rented
3. Facility available: Electricity / water supply.

iii) Other assets 1.

2.
3.
We define two new variables which represent the sum total of values assigned to
various components of assets before and after joining Saahasee. We wish to

12
understand whether the participants' status changed after they had joined Saahasee
and hence we run a Wilcoxon Signed-Rank Test.

Table: 17

Wilcoxon Signed Ranks Test

Ranks
Mean Sum of
N Rank Ranks
total_assetstwo - Negative 96a 82.14 7885.00
Total_assets Ranks
Positive 67b 81.81 5481.00
Ranks
Ties 133c
Total 296
a. total_assetstwo < Total_assets
b. total_assetstwo > Total_assets
c. total_assetstwo = Total_assets

Table:18

Test Statisticsb
total_assetstwo
- Total_assets
Z -2.080a
Asymp. Sig. (2- .038
tailed)
a. Based on positive ranks.

13
The Ranks (table: 17) provides some interesting data on the comparison of
participant's Before (Pre) and After (Post) joining Saahasee . We can see from the
table's legend that 96 participants had a higher status before than after joining
Saahasee. However, 67 participants had a higher status after joining Saahasee and
133 participants saw no change in their status.
By examining the final Test Statistics (table:18) we can discover whether these
changes due to joining Saahasee, led overall to a statistically significant difference
in status. We are looking for the Asymp. Sig. (2-tailed) value, which in this case is
0.038. This is the P value for the test. In statistics, the Wilcoxon Signed Ranks Test
is denoted by the test statistic T although we can report the Z statistic instead.
We could, therefore, report our results as follows:
Wilcoxon Signed Ranks Test showed that membership of Saahasee did not elicit a
statistically significant change in the status of individual (Z = -2.080, P = 0.038).
However since we are concerned about not only the economic condition but also
about the Social transformation in the community we further analyse the data to
identify the changes.

The analysis of the data indicates the the following factors:

1. Majority of the women (81.7%) have taken up the activity on their own as
indicated in table: 1
2. They have received strong support from their husbands and sons (82.3% and
9.0%) as indicated in Table: 2
3. Almost 74.0% accept that their condition has changed after joining Saahasee
as shown in Table: 3
4. 98% of the members recognize the significant role played by Saahasee
in their welfare as well as in satisfying their basic needs (Table: 4&5).
5.75% believe that they have benefited from their participation in the programs
organized by Saahasee. (Table: 6)
6.95% express the feeling that there has been a change in the attitude of other
members as well the members of the family towards women. (Table 7 &8)
7. Though they are satisfied with the progress they want additional effort in this
direction so that more and more people can benefit. (Table 10 &11)
8 Table: 13, 14, &15 indicate that in majority of the households women are not
employed and also almost 55 % of the families the number of dependants were
around 3 to 4.

14
 9. All the members have benefited from the training programs and also have
Contributed to the savings of the group on an average an amount of Rs.150/-

10. Default in repayment has been very insignificant.

Table: 1

Activity independent

Cumulative
Frequency Percent Valid Percent Percent

Valid no 55 18.3 18.3 18.3

yes 245 81.7 81.7 100.0

Total 300 100.0 100.0

Table: 2

Family support

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 1 .3 .3 .3

husband 247 82.3 82.3 82.7

sons 27 9.0 9.0 91.7

daughters 3 1.0 1.0 92.7

5 22 7.3 7.3 100.0

Total 300 100.0 100.0

15
Table: 3

change

Cumulative
Frequency Percent Valid Percent Percent

Valid No 78 26.0 26.0 26.0

Yes 222 74.0 74.0 100.0

Total 300 100.0 100.0

Table: 4

Role of sahasee significant

Cumulative
Frequency Percent Valid Percent Percent

Valid no 7 2.3 2.3 2.3

yes 292 97.3 97.7 100.0

Total 299 99.7 100.0

Missing System 1 .3

Total 300 100.0

Table: 5

Role in basic needs

Cumulative
Frequency Percent Valid Percent Percent

Valid no 6 2.0 2.0 2.0

yes 293 97.7 98.0 100.0

Total 299 99.7 100.0

Missing System 1 .3

Total 300 100.0

16
Table: 6
benefit

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 5 1.7 1.7 1.7

extremely 221 73.7 73.7 75.3

someextent 69 23.0 23.0 98.3

not at all 5 1.7 1.7 100.0

Total 300 100.0 100.0

Table: 7
Change in attitude of members

Cumulative
Frequency Percent Valid Percent Percent

Valid no 13 4.3 4.3 4.3

yes 287 95.7 95.7 100.0

Total 300 100.0 100.0

Table: 8
Change in attitude of family members

Cumulative
Frequency Percent Valid Percent Percent

Valid no 13 4.3 4.3 4.3

yes 287 95.7 95.7 100.0

Total 300 100.0 100.0

Table: 9
conflict

Cumulative
Frequency Percent Valid Percent Percent

Valid no 286 95.3 95.3 95.3

yes 14 4.7 4.7 100.0

Total 300 100.0 100.0

17
Table: 10
satisfied

Cumulative
Frequency Percent Valid Percent Percent

Valid no 3 1.0 1.0 1.0

yes 297 99.0 99.0 100.0

Total 300 100.0 100.0

Table: 11
Effort on a larger scale

Cumulative
Frequency Percent Valid Percent Percent

Valid no 8 2.7 2.7 2.7

yes 292 97.3 97.3 100.0

Total 300 100.0 100.0

Table: 12
Descriptive Statistics

N Mean Std. Deviation

Has the loan been repayed 299 .59 .493

How many times 300 1.55 1.481

Have you been a defaulter 300 .04 .188

Valid N (listwise) 299

Table:13
Female employed

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 221 73.7 73.7 73.7

1 70 23.3 23.3 97.0

2 8 2.7 2.7 99.7

3 1 .3 .3 100.0

Total 300 100.0 100.0

18
 Dependents

Table:14

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 10 3.3 3.3 3.3

1 24 8.0 8.0 11.3

2 50 16.7 16.7 28.0

3 117 39.0 39.0 67.0

4 56 18.7 18.7 85.7

5 29 9.7 9.7 95.3

6 10 3.3 3.3 98.7

7 3 1.0 1.0 99.7

10 1 .3 .3 100.0

Total 300 100.0 100.0

Table:15 Male employed

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 13 4.3 4.3 4.3

1 217 72.3 72.3 76.7

2 49 16.3 16.3 93.0

3 20 6.7 6.7 99.7

4 1 .3 .3 100.0

Total 300 100.0 100.0

19
Table: 16

Loan from sahasee

Cumulative
Frequency Percent Valid Percent Percent

Valid no 93 31.0 31.0 31.0

yes 207 69.0 69.0 100.0

Total 300 100.0 100.0

Table: 19

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

attended training from 300 0 1 .92 .267

sahasee

cotribution per month 299 .00 1500.00 138.9632 116.19786

Valid N (listwise) 299

20
IMPLICATIONS OF THE STUDY

The present study has highlighted the following factors:

1. Poverty alleviation can be achieved only if it also has employment generation as

an agenda.

2. There is large untapped female population willing to operate from their homes that

can be provided gainful employment.

3. Training programs, literacy programs, spread of awareness regarding health, nutrition

and hygiene, regular health camps improve the wellbeing of the slum population and

improve their productivity and hence have to be done on a larger scale. An enthusiasm

shown by the members involved in these activities only ascertains the fact that “self help

is the best help”. Additional funding in financially viable training programs could pave

the way for a steep growth trajectory.

4. Developing self confidence of the women and making them financially independent

may enable us to resolve number of issues relating to women and the girl child.

21
SUGGESTION
A number of suggestions have been offered by the respondents for enhancing the benefits

for the members.

1) Formation of more groups and of a larger size.

2) Organizing more training programs for gainful employment which can be done at

home (Gruha udhyog)

3) Special efforts to reduce harassment of the girl child through collective action.

4) Introduction of insurance scheme for social security.

5) Educating the women on managing finance.

6) Provide information on legal rights so that communities can look after the welfare of

their own members.

22
CONCLUSION
The study has revealed that NGOs (Saahasee) can play a significant role in
promoting thrift, providing loan and resolving the financial problems of the members of
the communities who have registered themselves as Mahila bachat Ghat.Micro credit
programs for women have been recognized as the most effective of achieving progress.
Financial independence provides confidence and improves their decision taking capacity.
They develop the capacity to see the problem that they encounter more objectively .This in
turn could pave the way for a social transformation.

Another noteworthy feature is that all the members unilaterally stress the need
for educating the girl child. The girls in these communities have entered the portals of
educational institutions and are also pursuing higher education. They also actively
participate in the awareness programs and assist the members in their effort. This is a clear
indication of the transformation that is taking place.

The study has revealed that there was no conflict between members of the family
regarding the decision taken by the women. The attitude of the members of the family had
definitely changed after they joined Saahasee which itself proves the point that such efforts
need to be promoted in our society to bring the people out of the age old rigidities. Women
have responded positively and asked for programs that would provide gainful employment.
If the Government through these NGOs organize such programs it would help in
alleviating the problem of Poverty and at the same time bring about a change in the social
environment.

23
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25
APPENDIX I

The impact of Micro finance with respect to poverty alleviation and socio –
economic empowerment of urban women – an empirical analysis

Questionnaire to the participants

Individual profile
1. Name: ______________________
2. Age: __________________
3. Family Size : Male _________ Female ____________ Children___________
4. Number of members employed : Male_________ Female____________
5. Number of dependants: ____________
6. Marital status: Married/Unmarried.
7. Level of education: _________________
8. Husband’s Name /Father’s Name __________________________
a. Employed/Unemployed
b. Nature of employment:
c. Income: Regular/Contractual
9. Reason of joining the SHG: _________________________________________________
10. Period of membership: ________
11 .Membership of other organization (if any): ____________
12. Financial status prior to taking membership: Satisfactory/Not satisfactory

Financial profile

Before joining Sahasee

12. Family assets

i) Land holding yes No
ii) Housing 1.Type of house: Hutment / chawl /building
2. Housing status: own / rented
3. Facility available: Electricity / water supply.

Iii) Other assets 1

2
3

13. Sources of Income: a.____________ b._________________ c. ____________.

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14. Forms of Savings
(i) Savings contribution to group
(ii) Recurring deposit
(iii) Fixed Deposit

After Joining Saahasee

12 a.Family assets
i) Land holding yes No
ii) Housing 1.Type of house: Hutment / chawl /building
2. Housing status: own / Rented
3. Facility available: Electricity / water supply.

Iii) Other assets 1.

2
3

13 a. Sources of Income: 1.____________ 2._________________ 3. ____________.

14 a.Forms of Savings
(i) Savings contribution to group
(ii) Recurring deposit
(iii) Fixed Deposit

15. Loan availed

16.Frequency of loan
17.Loan repayment
18.Loan Balance

Investment pattern
19.Name of the activity undertaken :_____________________
20.Reason for taking up this activity: ____________________
21.Did you obtain training from Saahasee regarding the conduct of the activity: Yes/No.
22.How many people are involved in this activity _____________
23. Amount invested to start the activity: _________________
24. Loan obtained from Saahasee :______________
25. Other sources of funding : a. Self b. Money lender c. Relatives/Friends d.Bank.
26.Did you approach for loan again? Yes/No
27. If Yes, Why?
28. Was it sanctioned? Yes/No
29.Have you repayed the amount? Yes/No
30. Have you been a defaulter? Yes/No
31.Is there any penalty imposed on the defaulter? Yes/No
32.Is there any incentive given to those who repay on time ? Yes/No

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33. Have you taken up this activity independently? Yes/No

34.Do your family members provide support for this activity?

Husband/sons/daughter/daughter-in law/any other,specify.
35. Who takes the decision in financial matters? Self /husband/jointly/others
36. Has there been any conflict while taking decision? Yes /No
37. Have you sought assistance from saahasee to resolve the conflict? Yes/No
38. Net annual income earned currently _____________________
39. What has been the Change in situation from day one ___________________
40. Are you satisfied with the progress achieved?
41. Has SHG played a significant role in meeting emergency ____________________
42. Has SHG played a significant role in meeting basic needs._____________________
43. What difficulties have you faced in meeting your financial commitments?
44. What suggestion do you offer to enable the SHG to work more efficiently?

Social And cultural transformation

45. Have you participated in any program organized by Saahasee to spread awareness Yes/No
46. If Yes, list them 1. Relating to health
2. Relating to the activity you have undertaken.
3. Relating to family planning
4. counseling session
47. To what extent have you benefitted from these programs.
i. Extremely
ii.To some extent
iii. not at all

48. Has there been a change in the attitude of the members due to these programs? Yes/No

49. Has there been a change in the attitude of the family members towards you? Yes/No

50. Do you feel this type of effort should be undertaken on a larger scale? Yes/No
51. Are you willing to participate in such programs to improve the condition of people in other
areas?
Yes/No
52. Do you have anything else to say about the contribution of Saahasee?

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The impact of Micro finance with respect to poverty alleviation and socio –
economic empowerment of urban women – an empirical analysis

Questionnaire to Representative of Saahasee

1. Name of the organization :Saahasee

2. Name of the interviewee: Eddie, Shanti, Sudha and Poonam

3. Position of the interviewee in the organization: Management

4. Location of the organization: Mumbai, Delhi and Pune.

5. Date of interviewee: 16/5/12

6. Name of the researcher: Ms. Meenakshi Narayanaswamy

Background information
7.What type of institution is your organization?

National NGO on the empowerment of Women and Children.

8. What kind of services do you offer?

Organizing and training of slum communities towards Sustainable development through: Savings
based Self Help groups; Community based Training, Education of Women and Children, Senior
citizens Care, Community Health and Business development

9. For what reason did you start this organization?

To deal with social injustice for the poor communities, especially the vulnerable sections and among
them focus on the empowerment of women and children.

10. How long has this organization been operating?

9 years

11.What is the mission statement of your organization?

Working in partnership with community based organizations through sustainable development

interventions

12. What are the goals of your organization?

To see the poor in our nation empowered and celebrating life in a dignified, personal and
community life.

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13. Do you work in:

a. Urban area b. Rural area c. Rural and Urban areas.

Urban Area.

14. Who started this organization?

a. Government

b. Private non –government organization

c. Individuals

Please specify

Individual -Our founder and Exec Director- Eddie Mall

15.How many participants are availing the facilities offered by your organization?

If you mean target families- close to 300,000 people.

16. On an average how long have they been linked with your organization?

On an avg. Close to 6 years

Funding
1. Did your organization receive any outside funding when it started?

a. Yes b. NO

Yes

2. If yes, from whom?

 Tear Fund Holland

 Tear fund Australia
 Tear Fund New Zealand
 SEL France
 Help Age –India
 Citibank
3. What type of Funding?

Foreign and local Contribution

4. For what all purpose are these funds used?

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Health and gender issues, Education-especially of the Girl Child, Vocational training, Microfinance
Training, Enterprise program, Nutrition program for women and malnourished children, Senior
citizens care.

5. Does the organization at present still receive funding from outside donors?

a. Yes b. No

Yes

6. How important is outside funding to the working of this organization?

a. Very important. b. Important c. Of very little importance d. No importance

Please explain your answer.

Very important: as the nature of support is understood from a cutting edge

Perspective. Often international support is free from political and
Preferential treatment. Support is primarily professionally inclined.

7. What are you doing to decrease the level of dependency on donors?

We are registering our programme areas/ federations/ SHG’s as independent CBO’s that will cover
their own development programs through their collective community savings.

They are already able to pay for the rent and Salaries of their workers. They also are generating
profits from their operations of running the community savings and loan operations. They also run
profitable businesses such as the computer centers, beauty parlors, ration shops, etc.,

We are planning to decrease the level of dependency on donors by seeking support from the
Government and building relationships through CSR link ups and also by offering training for
development NGO’s, institutions and charities on “Sustainable urban development in Slum
Communities”.

8. Do your donors set condition for funding?

a. Yes b .No

Yes

9. Are these conditions:

1. Geographical location of the participants.

2. Level of poverty of the participants.

3. Economic activity of the participant.

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4. Others Specify.

Geographical location of the participants, Level of poverty of the participants, Economic activity
of the participant is not set by the donors but is a SAAHASEE criterion. These happen to be poor
and systemically deprived people groups and localities. The donor’s criteria however also have to
match our concerns and thus a proposal of support and partnership is derived.

10. In your opinion, will this organization be able to function well without any outside funding in
future?

a. Yes b. No c. Uncertain.

At this juncture and the present environment of “Global fund crunch” we would not be able to
function without the outside funding. It must be noted however that our CBO’s/ Federations
(savings and lending program) can survive without outside funds.

11. Do you have any additional comments or suggestion regarding funding? Specify.

Yes. Funding has to be free from all divergent complexities especially corruption and preferential
treatment. It appears that there is easy money for Emergencies and Disaster programmes than
development programs.

Services Provided
1. Do you provide loans for?

a. Start ups - Yes

b. Working capital- Yes
c. Consumption- Yes
d. Others, specify: Business, Housing, Emergencies, Loan sharp repayment,
Education, Marriages, Assets.
2. What is the loan size?

Minimum __Rs 500 & Maximum _Rs. 30,000

3. What is your rate of interest?

2% on loans and 1% on Savings.

4. What cost does your interest rate cover?

a. Operational cost b. Inflation c. Others, specify: Staff and Rent costs

5. What system do you adopt to track your loan?

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 Monitoring savings and loans through the ‘monthly group meetings’, discussing and recording
all receipts and payments. Problems of the community and personal loan or savings default too
are discussed by the group.

6. Do you offer any kind of incentive to ensure repayment of loans?

No monetary or other gift incentives. The incentive is that a’ good track record’
shall possibly enable “another loan cycle with greater confidence and even maybe a higher
size loan” with secured profits for all the SHG members. In fact the practice is that any loan
defaults invite a “Fine” levied, as the money is purely the savings of the people in the Group.

7. What is your default rate?

Less than 1%
8. In your opinion, what are the most common causes of default?

Medical Emergencies or means of livelihood lost.

9. Does your organization monitor the loan it issued?

It is important to note that the program is to be sustained by the people. That
means that they have to learn to manage and monitor the program. Hence,
the accounting system (which is set by SAAHASEE) is maintained by the people
of the groups and federations.

The training to adhere and manage the structured system is SYSTEMATICALLY

AND REGULARLY taught to the members by SAAHASEE. The books are verified
and checked by SAAHASEE. The preparation of the books for Audit is also enabled by
the organization in tandem with the community leaders who are managing the accounts.

10. In your organization, is saving

a) Compulsory b) Voluntary

The ‘habit of saving’ in our organization is encouraged voluntarily.

But to participate in the organizations loaning activity (Helping Hand) it is
Compulsory that the staff has to be a member, otherwise the staff member cannot avail
any loans for any purpose from “Helping hand”.

11. Do participants earn interest on their savings deposits?

a) Yes b) No

Yes

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 If yes, how much?

1% monthly on cumulative total

12. What does your organization do with the accumulated savings from participants?
a) Use for lending
b) Deposit them in interest earning accounts
c) Invest in local community development programs
d) Invest in outside communities
e) Others specify:

The organization SAAHASEE does not control the money or even routes any
of it through its books.. It is independently managed and controlled by
the elected representatives of the community members Federations. They use
the money for all of the Above (a,b,c,d) but especially used for lending to the members.

13. Are the savings easily accessible to participants on demand?

a) Yes b) No

Yes. That is the reason that the money is banked in a local area Bank and
the signatories are elected representatives from the community

If not, explain why

NA

14. Do you have any knowledge of traditional informal or other formal ways of
saving used by your participants?
a) Yes b) No

If yes, please list them:

Yes. They used to be part of local Committees or chit funds. This has
reduced considerably after the SHG,s have become part of the communities
savings mechanisms

15. Do you have any linkages with other formal financial institutions (e.g. banks)?
a) Yes b) No

Yes, all the money from each community locality/ federation is banked at the
Local area Bank. They are aware of the bye laws by which the group is
Operational. They are in regular touch with the office bearers of the federations.
They are also invited for functions of the SHG’s. In some cases they are invited
to the Banks to exhibit their business and success stories. (e.g., HSBC,
CANARA Bank, Bank of Maharashtra)

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16. If no, can you explain why not?
N.A

17. What would you say are the major constraints to reaching financial sustainability?

The major constraints towards financial sustainability are the costs included in the
training of the Micro Finance Program. The group members, the office bearers
on leadership, management and accounting.

As community development- social development costs are covered by the

“Banking operations” of the community, it can weigh the program down
considerably, if the pros and cons in economic terms are not carefully calculated. Such
additional expenses that are normally carried out by SAAHASEE funds can negatively impact
the sustainability of the federation/CBOs.

18. What assistance does your organization require at the moment?

a) Financial
b) Management
c) Marketing
d) Training
e) Bookkeeping
f) Other. Specify

Primarily Financial and Human resources- Marketing and Training.

19. What would you say are the major constraints to increasing your ability
to reach the poor?

Major constraints: Scale requires Long Time inputs of organizing individualistic slums and
the mindsets of such people into functional communities. Subsequently, their training and
capacity building inputs.

20. What would you say are the major constraints to increasing your ability to
reach women?

The prevalent attitude within society of the “place of Women” being

lesser than men. The understanding that Women must be confined to
domestic and traditional mother- wife role and not a valid or
possible contributor to the family’s economic capacity is also a constraint.

This requires sensitive handling and relationships of a non threatening nature

have to be espoused and at the same time gently challenged and changed. To
break out of the ‘stereotyping’ caste and class issues, in especially
poor communities is a huge challenge that hinders ability.

35
 The other part to this is the challenge in encouraging and making women then take on
roles and be leaders in predominantly a ‘male’ dominated society.

21. Are there any legal/ regulatory barriers hampering the organization?

We would like to have had a clearer regulatory norms for setting up our
CBO”S/ Federations as Co-operatives under the ‘Not for profit’
regulatory norms.

We have tried to register them under the Societies Act or Trust Act but there
is really no single regulatory body that they seem to fit in. The nature of their
business includes financial transactions, loans, savings, memberships,
businesses, charity and engagement in community development of their
slum areas.

In addition they do some work too in the realm of political advocacy and
social development. Since the SHGs/ Federation/CBOs, thus far have no
independent legal identity, it remains an informal body that truly limits the
operations towards being a self governing and thereby a sustainable institution.
After much consultations with legal experts We have been advised to register
the Federations as CBO (Community Based Organisations) under
Mutual Association/Trusts.

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