Gauravl1

PRODUCT DEVELOPMENT FOR MICROFINANCE
(DESIGNING, TESTING AND LAUNCHING)
Submitted by
Gaurav Loomba (25015)
ORGANISATION TRAINEESHIP SEGMENT
PRM 2004-06
MATO SHREE RAM PYARI BAI DHARMIK PRATISHTHAN, NASHIK

JULY 2005
Submitted To
Faculty Guide
Prof. Prabal K. Sen
INSTITUTE OF RURAL MANAGEMENT, ANAND

ACKNOWLEDGEMENT
I wish to express my deep and sincere gratitude to the Institute of Rural

Management, Anand and SARDA GROUP for bestowing upon me this unique
opportunity to learn as a part of our organization traineeship segment from 6 th June 2005
to 30th July 2005. It would be an honor to express my appreciations to Shri Shrirang
Sarda, chairman of SARDA GROUP for providing me the necessary facilities for carrying
on this study.
I am thankful for the guidance and support rendered to me by Mr. Hemant

Laxman Shingne, Assistant General Manager of Human Resource Department, my
reporting officer and Mr. Anand Shetty, Manager Shrilekha Nagari Sahakari Bank and all
the employees of the bank for sparing their invaluable time and imparting their
knowledge. I would also like to thank Mrs.Gayatri Gayakwad Training officer of the
H.R.D department for her guidance and help.
This project would not have been possible without the guidance and blessings of
my faculty guide Prof. Prabal Kumar Sen and I would like to express my gratitude for his
laudable help and continued support throughout the project.
Last but not the least I am thankful to all the members of the staff and the
department heads in Sarda Groups for giving me a patient hearing. Their enthusiasm
motivated me to put in my best.
Gaurav Loomba (25015)

IRMA.
2
Executive Summary
Title : Organisational Action Component
Organization : Matoshree Rampyaribai Trust, Nashik.
Reporting officer : Mr. H.L. Shingneh (AGM, Human Resource Department)
Faculty Guide : Prof. Prabal Kumar Sen
Students Name : Gaurav Loomba
Objectives: (1) Gathering the institutional resources and designing testing and launching
the product. (2) Undertaking the preliminary market research to segment the market and
solicit focused feedback from target customers. (3) Designing a product prototype, to be
used in a pilot test (4) Conducting a pilot test, to refine the prototype and determine what
new products needs to be launched (5) Developing a marketing strategy and internal
systems to successfully launch the new product and manage its on going refinement
Scope of study: The study was carried out in the local slum areas of Nashik covering
almost eight new areas where the product has either not been introduced or is in
preliminary stage.
Methodology: The primary sources involved having sample survey of 1000 households.
One to one interviews, analyzing case studies, and discussing with slum people about
there needs and requirements. Secondary Sources: company documents and records about
the ongoing activities and Internet.
Main findings/ Learning’s 1) All the slum areas are homogeneous in nature either in
terms of income or expenditure, But majority of the households are able to generate
sufficient income to suffice there consumption needs.2) Since most of the women are
already into income generating activities, therefore they will use this amount for
productive purpose only. It’s important that training need to be provided to the women so
that those women who are not into in any kind of activity can also go for it. 3) Incentives
in form of reduced ROI for the next loan, for those groups who repay the loan timely. For
that if required, interest on the loan can be raised depending on the commercial rates.4)
The members should be encouraged to repay the loans before time. The repayment should
be weekly or monthly depending on the situation.
5) I also found that most of the households need serious repairs, so if some small loans for
the repairing could be started they can be beneficial both to the bank and to the members
The house repairing loans will be provided to those groups only whose repayment has
been regular and all the installments repaid.
Conclusion: There is a lot of demand for this product, which can be easily analyzed from
the rapid growth rate, which has been achieved in making members. Within this small
time frame of four months we have been able to build strength of 2000 members.
Recommendations: It’s important that a training mode needs to be prepared so as to
make the women aware that how to use the amount for increasing their income. Not only
that it should be emphasized that the staff is more sensitive to the needs of the women and
try giving them options of different income generating activities. Some professionals need
to be hired who can continuously monitor and evaluate the performances of the SHG’S.
More and more women should be promoted to small ventures such as tailoring shops,
roadside vendors, beauty parlours, and formation of bakery products. If possible they
should combine together and form a small entrepreneurship in which they can invest to
gain more income
3
TABLE OF CONTENT
Chapter 1
1.1 Introduction 9
1.2 Microfinance poverty reduction nexus 10
1.3 Objective of the present study 11
1.4 Methodology 11
1.4.1 Team Building 13
1.4.2 Buy in Process 13
1.4.3 Market Segmentation 13
1.4.4 Market research- 14
1.4.4.1 Primary data 14
• One to one interviews
• Sample survey /questionnaires
• Real time research
1.4.4.2 Secondary data 15
• Current product information
• Company documents
• Competition
• Market studies
• Public information
Chapter 2
2.1 Mataoshree Rampyaribai Sarda Dharmik Pratishthan 16
2.2 Vision of MRPBT 18
2.3 Mission of MRPBT 18
2.4 Goals of MRPBT 18
2.5 Area of operation 18
Chapter 3
3.1 Internal Preparation: Assembling the Development Team 20
3.1.1 Product Champion 20
3.1.2 Cross Functional Team 22
3.2 Institutional buy in 23
Chapter 4
4.1 Existing procedure for making members involve: 25
4.2 Existing product 26
4.3 Case Studies 28
4.3.1 Case study-1 28
4
Chapter 5
5.1Pilot Testing 32
5.2 Sampling method 33
5.3 Designing the Questionnaire 35
5.3.1 Questionnaire Detail Information 37
5.4 Training Field Survey Team 39
Chapter 6
6.1 Observation and analysis of the slum areas covered 42
6.1.1 Observations of Area-1 42
6.2 Case studies 51
6.3 Observations and findings (Upnagar area). 57
6.4 Observations and findings (Satpur and Panchavati area). 61
6.5 Observations and findings (Anandvalli) 66
6.6 Observations and findings (Wadalnaka and Rajiv Nagar area) 69
6.7 Major Findings 73
6.7.1 Proposal of Housing Loan 74
6.7.2 Major characteristics of the SHG’s 75
6.8 Loan Collection Activities 75

6.8.1 Responsibilities of fieldworkers 76
6.8.2 Role of bank sathis 76
6.8.3 Introduction of training during the loan disbursement activity 77
List of Annexure
Survey Questionnaire Form 78

References 79
5
LIST OF TABLES
Table 1.1 Role of MFI’s and its impact on poverty 10

Table 4.2.1 Distribution of initial amount for membership 26
Table 4.2.2 Loan amount 26
Table 5.3.1 Indicators included in the Final Questionnaire 36
Table 5.4.1 Two Days Training Activities 41
Table 6.3.1 Household assets 56
Table 6.3.2 Household details of male and female (Sources: Primary Survey) 57
Table 6.3.3 Incomes and Expenditure Analysis of Upnagar 57
Table 6.3.4 Dwelling Indicators Upnagar 60
Table 6.3.5 Asset Profile Matrix Upnagar 60
Table 6.3.6 Percentage of People into different types Of Saving schemes 61
Table 6.4.1 Household details of male and female 61
Table6.4.2 Incomes and Expenditure Analysis of Satpur and Panchavati 62
Table 6.4.3 Dwelling Indicators Satpur and Panchavati 62
Table 6.4.3 Dwelling Indicators Satpur and Panchavati 64
Table 6.4.4 Asset Profile Matrix Satpur 64
Table 6.4.5 Asset Profile Matrix Panchvati 65
Table 6.5.1 Incomes and Expenditure Analysis (Sources: Primary Survey) 66
Table 6.5.2 Dwelling Indicators Anandvalli 68
Table 6.5.3 Asset Profile Matrix 68
Table 6.6.1 Household details of male and female (Sources: Primary Survey) 69
Table 6.6.2: Incomes and Expenditure Analysis (Sources: Primary Survey) 70
Table 6.6.3: Dwelling Indicators Wadalnaka and Rajiv Nagar 72
Table 6.6.4 Asset Profile Matrix 72
Table 6.6.5 Asset profile matrix 72
6
LIST OF FIGURES
Figure 1.1 Traditional Approaches to Product Development 11

Figure 3.1 Organizational hierarchy of Shrilekha Nagari Sahakari Bank 20
Figure 5.2.1 Quartile for a survey area 33
Figure 5.3.1 Indicator and underlying components 34
Figure 6.3.1 Incomes and Expenditure (Amarpalli) 57
Figure 6.3.2 Incomes and Expenditure (Indra Nagar) 57
Figure 6.3.3 Incomes and Expenditure (BhavNagar) 58
Figure 6.4.1 Incomes and Expenditure (Satpur) 61
Figure 6.4.2 Incomes and Expenditure (Panchavati) 62
Figure 6.5.1 Income and Expenditure (Anandvalli) 66
Figure 6.6.1 Income and expenditure (Rajiv Nagar) 69
Figure 6.6.1 Income and expenditure (Wadalnaka) 70
Figure 6.8.1 Training Schedule 76
7
CHAPTER ONE
1.1 Introduction
Definition of microfinance:
Microfinance is the provision of broad range of financial services such as deposits, loans,
payment services, money transfer and insurance to the poor and low-income households
and their micro enterprises. Three types of source provide Microfinance services:
• Formal institutions such as rural banks and cooperatives
• Semi formal institution such as non governmental organizations and
• Informal sources such as moneylenders and shopkeepers.
Institutional microfinance is defined as to include microfinance services provided by both
formal and informal institutions. Microfinanace institutions are defined as those
institutions, whose major business is provision to microfinance services.
1. Microfinance can be a critical element of an effective poverty reduction strategy.

Improved access and efficient provision of saving, credits and insurance facilities in
particular can enable the poor to smoothen there consumption, manage there risk
better, build there assets gradually, develop there micro enterprises, enhance there
income earning capacity and enjoy an improved quality of life. Microfinance
services can also contribute to the improvement of resource allocation, promotion of
markets and adoption of better technology; thus micrfinance helps to promote
economic growth and development.
2. Without permanent access to institutional microfinance, most poor house holds
continue to rely upon meagre self reliance or informal sources of microfinance
which limits their ability to actively participate in and benefit from development
opportunities.
3. Microfinance can provide an effective way to assist and empower poor women who
make up a significant portion of the poor and suffer disproportatinately from
poverty.
8
4. Microfinance can contribute to the development of the overall financial system
through integration of financial market.
1.2 Microfinance poverty reduction nexus
Financial Results Impact on poverty

service
Saving facilities • More financial savings • Reduce household

of micro finance • Income from savings vulnerability to
institutions risks/external shocks
• Greater capacity for self
(MFI) • Less volatility in
investments
• Capacity to invest in better house hold
technology consumption
• Enable consumption smoothening • Greater income
• Enable ability to face external • Severity of poverty is
shocks reduced
• Reduce need to borrow from • Empowerment
moneylenders at high interest • Reduce social
rates. exclusion
• Enable purchase of productive

assets
• Reduce distress selling of assets
• Improve allocation of resources
Credit facilities • Increase economic growth
• Enable taking advantage of

• Higher income
profitable investment
• More diversified
opportunities
income
• Lead to adaptation of better
• Less volatile income
9
technology • Less volatility in
• Enable expansion of micro house hold
enterprises consumption
• Diversification of economic • Increase household
activities consumption
• Enable consumption smoothening • Better education for
• Promote risk taking capacity children
• Reduce reliance on expensive • Severity of poverty is
informal sources reduced
• Enhance ability to face external • Empowerment
shocks • Reduced social

• Improve profitability of exclusion.
Insurance investments
service • Reduce distress sale of

product/services
• Increase economic growth
• Aversion of sudden
• Risk absorption and
decline in economic
diversification
status consequent
upon contingency
facing the family
Table 1.1 Role of MFI’s and its impact on poverty
1.3 Objective of the present study

The objectives of the study are as follows:
• Gathering the institutional resources and designing testing and launching the product
• Undertaking the preliminary market research to segment the market and solicit
focused feedback from target customers.
• Designing a product prototype, to be used in a pilot test
• Conducting a pilot test, to refine the prototype and determine what new products
needs to be launched
10
• Developing a marketing strategy and internal systems to successfully launch the new
product and manage its on going refinement
• Understanding factors and implementing them for product development
1.4 Methodology
The methodology use for these objectives will be more of traditional approach to new
product development. This graduated approach, which breaks down the product
development into discrete phases, is depicted in figure1.1
Opportunity Identification
No
Go
Analysis and Evaluation
No
Go
Design and Development
Go
Market Testing
No
Go
Commercialization
No
Go
Life Cycle Management
Reposition
Product Funnel Approach

Harvest / Terminate
Figure 1.1. Traditional Approach to Product Development
Traditional new product development involves:
• A dynamic process of client based product refinement
11
• A systematic approach through defined phases including designing, testing launch and
commercialization.
This process involves seven stages from the opportunity identification to the final
launching of the product with diverse portfolios to cater to the needs of different
segments. The first stage involves identification of the opportunities in the market in
terms of the size of the population who can be catered to these services. It further
involves the analysis and evaluation of the diversity of the population and how to design
the product so as to cater to all the segments of the population. It further moves to the
design and development stage which involves designing of the product and adding of
different feature to the product with respect to demand analysis. Then we will proceed to
the market testing stage which involves the pilot test of the product in limited area to
analyse the response of customers to the product and the final stage involves the
commercialisation of the product.
The initial phase of the process involved product designing and development. The initial
requirements for this process involved
• Team: multi disciplinary skills and a product champion
• Buy in: support and resources of the institution for the process
• Market segmentation: defining the customer group to be targeted
• Market research: identification of the unmet or poorly met financial service needs
and design of the product prototype
1.4.1 Team Building

The team building process involved first of all identifying the amount of human resources
presently available and then comparing the need of the manpower for fulfilling the target
and accordingly fulfilling the requirement for the long-term objective of increasing the
member base. This process involved formal discussions with our Asst. General Manager
(HRD) Mr. Hemant Laxman Shingne and also with the manager of Srilekha Nagari
Sahakari Bank, branch, Mr. Anand Shetty.
1.4.2 Buy in Process
12
The second important thing required was that there should be a continuous
communication between the product development team with colleagues and also to
continuously engage the organization’s input. This was important because the success of
developing, testing and implementing new product requires drawing on the strength and
resources of different functional areas within the organization. This dialogue was
generally conducted during strategic planning sessions or special meetings called by the
Chairman Mr. Shrirang Sarda or the AGM (HRD) Mr. Shingne.
1.4.3 Market Segmentation

The third stage of market segmentation involved first identifying the customers. Since
our module was targeting the women only so we first wanted to identify that what is there
requirement. How they assimilate the product to be so that it can be of help to them to
cater to their needs. I had some informal discussion with the women members, my
imperfect knowledge of Marathi was a bit of hindrance but I persuaded them to
conversate in Hindi. I also visited certain slum areas, to the house of the members, where
I was successful in getting an in depth information about the members. Through these
interviews I tried to identify that whether the initial product was fulfilling the objective of
satisfying there needs and how much variability of needs is there across women of
different slum areas, doing different businesses. This I tried to identify through interviews
and case studies of women belonging to different areas and doing different businesses
1.4.4 Market research

The market research involves designing the initial product prototype-the sample product
to pilot test. Through market research we wanted to identify that what are the new areas,
which we can cover. For this we needed to gather data that is both qualitative, which will
help decide how to design and deliver the product and quantitative which will help us to
identify the demand. we tried to capture thorough our research all the 4P’s
• Product (design)-includes specific features, terms, packaging, liquidity, ancillary
services such as loan review and disbursement times and collateral or guarantees.
• Price-includes loan fees, prepayment penalities, prompt payment incentives and other
discounts and schemes
• Promotion-includes advertising, public relations, direct marketing, publicity.
13
• Positioning-includes both physical placement of the product, delivery channels
(through branches, affinity groups etc.) and its competitive position in the market (low
price, high quality, quick turnaround time, professional service and so forth
Each of these factors will be refined continuously during the prototype development and
pilot testing and finalized during product implementation phase. The steps involved in
designing prototype are:
General R & D –Collecting data from available support resources
Client feedback-soliciting direct customer response to the product prototype
Primary data –the refinement of the product prototype required direct input from potential
customers drawn from targeted master segments. This type of reality check is critical to
the success of the pilot test and the ultimate commercialization of the new product. The
variety of client feedback techniques used were:
• One to one interviews
• Sample survey /questionnaires
• Real time research
Secondary data –general market analysis

It involves getting as much market information as possible in designing the product
features. This information can provide valuable information designing the new product or
bringing changes or modification in the existing product. sources of the secondary data
are as follows:
• Current product information
• Company documents
• Competition
• Market studies
• Public information
14
CHAPTER TWO
2.1 MATOSHREE RAMPYARIBAI SARDA DHARMIK PRATISHTHAN
In the year 1981, Shri Kisanlalji Bastiramji Sarda established a public charitable trust by
the name of “MATOSHREE RAMPYARIBAI SARDA DHARMIK PRATISHTHAN”
after the name of his mother. The objective was establishment, running and maintaining
of different services. The services performed by the trust are:
• To promote Hindu religion.
• To increase the influence of saint sayings and making them accessible to common
man so that they can change their lifestyles and get more focused towards “Bhakti”
• For the formation of temples, dharamshaalas, samaaj mandirs and other welfare
activities. To see there day to day expenditures, to allocate funding for it and to open
it for use of people.
• It was also formed with a mission to organize programmes, so that people come out of
the old orthodox traditions. The new ideological mindset required promoting more
religious activities and through them bringing change in the society.
• It was also formed for the publication of holy books and to buy and sell those books.
Also give books free of cost and form a library.
• Also to make arrangements for satsangs, kirtans, pravachans and other religious
meetings.
• Arrangement of food and stay for all the saints.
• Educational, cultural, health and other social welfare programmes for the society.
15
• For brilliant students providing scholarships and incurring other medical expenditures.
• To remove poverty from people of all religion of nashik and for that purpose forming
new programmes, if the programmes seem important then promoting them on large
scale.
Shri Shrirang Sarda ji wanted to fulfill the dreams of his father of raising the people of
Nashik above the poverty line and for that purpose they decided to use the micro credit
program about whose success they have heard a lot. Matoshree Ram Pyaribai Dharmik
trust decided to launch this product through their sister concern Shrilekha Nagari Sahakari
bank, which has a large experience of providing commercial loans.
The main driving force for introducing micro finance programme oriented towards
women was:
“Empowerment has been defined a process of change by which individuals or
communities with little or no power, gain power and ability to make choices that affect
their lives”
Thus empowerment is about change, choice and power, but its scope and relevance will
be determined by the context i.e. the socio-cultural conditions that affect women’s
options. The women’s access to credit and saving can give rise to series of interlinked and
reinforcing ”virtuous upward spiral” of economic empowerment, improved awareness
and self-confidence and social and political empowerment.getiing cash into hands of
women helps to increase women’s self esteem. It translates into control of her financial
resources, which in turn builds
What women say is important
her economic empowerment (Earning
opportunities, financial management) A better quality of life will come only if:
Her voice and status within the family • Employment and incomes are stable
• Children are educated
and ultimately within the community. • Social evils –such as alcoholism -are
Increasing women’s income also eradicated
directly improves family welfare as Indicators of change for women through micro
women are seen to channel more of finance
their income to meeting needs of Objective
their household. • Ability to save and access loans
• Opportunity to under takes an economic
activity
• Mobility-opportunity to visit nearby towns
• Increased financial awareness
• A role in community activities
Subjective
16 • Increased self confidence
• Ability to command respect within the
From ideology to everyday reality…
…………………. What women
clients say……...…………………..
If we try to summarize the genesis of Matoshree, then the following points would be the
most enumerated ones and can be seen as the main driving force for which it was
conceived
• Empowering women
• Creating livelihood opportunities
• Reducing vulnerability of the poor
• Impacting poverty
• Addressing the issues of equality and social justice
• Providing institutional credit to the unorganized sector
2.2 Vision of the Organisation

The organization dreams of building a micro finance institution which will empower poor
women and make them self reliant in income generating activities.
2.3 Mission of the Organisation

• To help poor women of Nasik slum areas with micro credit, to work themselves and
thereby there families out of the vicious circle of poverty.
• To constantly deliver need based financial services in a cost effective manner and
become a financially sustainable micro finance institution for the poor.
2.4 Goals of the Organisation

• To reach the poorest families
• To empower women and involve them in income generating activities.
• To build a financially self sufficient institution
17
• To ensure a positive measurable impact on lives of poor and their families
• To reach 10000 families by the year 2005
2.5 Area of operations

Matoshree plans to expand its operations throughout Nashik .Its head office is located on
Dwarka Road by the name of Camel House, Nashik.The Shrilekha Nagari Sahakari Bank
is situated on the MG Road, and has two more branches one in the Canada corner and
other at Pawan Nagar.
CHAPTER THREE
3.1 Internal Preparation: Assembling the Development Team
The first step to methodological product development is mobilizing the organization to

introduce a new product to the market. For organization that has evolved from a specific
financial methodology, the proposed addition of a new product will have repercussions
throughout the organization.
We used a collaborative approach to define the specific product team that will carry out
the development process throughout the pilot phase. For that we first need to identify that
what is the hierarchy of the Shrilekha Nagari Sahakari Bank which will be directly
involved in the process of product development, its launching and finally making it to
reach to that particular segment (women who need the financial support for the purpose of
increasing there income or want to build an income generating cycle so as to sustain there
livelihood). For the financial institution, successful product development involves a
product champion who will motivate personnel and manage the process and a cross
functional team that performs necessary task and helps to build buy in.
3.1.1 Product Champion
18
The product champion is typically the person who becomes the products main proponent
and assumes responsibility for managing the development process. The main
responsibilities of the product champion are:
• Oversees and guides the entire process
• Sets work schedules and maintain momentum behind project.
• Builds institutional support for the product
• Manage the cross functional team and keeps them on track
• Sell the idea to management and stakeholders and keep them on track
The product champion for or team was Mr. Shingne who is an Asst. General Manager of
Sarda Groups and has a long experience of handling the human resources of the
organization .the whole team of the shrilekha is working under his guidelines and he is
acting as the coordinator for controlling all the activities. Not only that his senior
management position helps to build credibility in one and the other.
SHRILEKHA NAGARI SAHAKARI BANK- ORGANISATIONAL HIREARCHY
MANAGER
OFFICER
CASHIER CASHIER DEFAULT ASSISTANT ASSISTANT

HEAD CANADA COLLECTION HEAD PAVAN
OFFICE CORNER ASSISTANT OFFICE NAGAR
19
PEON PEON PEON
HEAD OFFICE PAVAN NAGAR CANADA CORNER
PEON
HEAD OFFICE
GRADE E D B A TOTAL
SNSL 1 1 9 4 15
Figure 3.1Organisational hierarchy of Shrilekha Nagari Sahakari Bank
3.1.2 Cross Functional Team

The product champion is responsible for oversight of each step of the development
process, the day to day task are undertaken by a product development team of key
personnel, which are critical to the products ultimate success. In our case the team
comprises of seven staff members. It includes:
Sales (credit officers): The credit officers are responsible for selling of the final product
The credit officers typically need to have best understanding of the client’s needs and
preferences, gleaned from ongoing contact with them. They have a sense of price
sensitivities and effective delivery channels that can be incorporated into the design of
new product prototype. Our sales team comprises of Mr. Shetty who has been recently
appointed as the manager of the shrilekha bank. Shetty has a strong hold in the slum areas
of nashik and there people recognized him by the name of baba shetty. He very well
serves the purpose of making people understand what the product features and how the
women for can utilize these there own welfare.
There is one more person by the name of Mr.Hegde who was initially a peon but has been
doing the job of collection for the last five years .He is also actively associated in the
promotion of the product. The general concept followed by us is that we go to a particular
slum area after making assessment about that area and then establish contact with those
people who are known to us. We explain the feature of the product to them and once they
are convinced about the product then we ask them to promote the product to other people
in the vicinity. That way we are able to establish a chain network. This process has been
quite successful in establishing the confidence among the people that this product is for
their welfare and they can utilise its benefit.
20
Human resources: The new product development team should have an understanding of
the ability of the MFI to design a training curriculum because training is an integral
component of the new product pilot test and implementation process. This knowledge
requires familiarity with the ability of credit officer to absorb the new product into the
existing responsibilities, both in terms of the skills required to underwrite the new product
to sell and manage it. The human resources staff must have more insight in training
resources.
Supporting staff: It involves two peons who are responsible for making arrangements for
the meetings of the “Mahila Bachat” at Canada corner. By seeking for the cleanliness of
the hall, making all necessary arrangement such as mikes, speakers, sitting arrangements,
refreshment for the new members and other arrangements such as water requirement
Management information system: The organization has a sound management information

system. Our MIS track and monitor all the critical data of an organization. As such it
involves bookkeeping, accounting ledgers, portfolio tracking, borrower information and
cost control, and is fully computerized .The MIS needs to be on hand in the design phase
to ensure that the organization has the capacity to track data successfully and implement
the new product.
3.2 Institutional Buy In

Its important that the product development team should regularly communicate progress
of the testing process to the colleagues and engage the organization’s input inter
departmental briefings are good settings for such discussions because the success of
developing, testing and implementing new product requires drawing on the strengths and
resources of different functional areas within the organization. For that we decided to
have weekly meetings on every Saturday so that we can discuss about whatever progress
has been made in the past one week and also to build strategies for the upcoming week
regarding:
• New areas that need to be targeted
• The date of the next meeting for allocating dates to the group for disbursement of
money
21
• To see if all the formalities related to previous members have been fulfilled and
whether they have been issued passbooks
• How to change the pace of promotions of the product so that we can target the
maximum customers.
• Building the product more mature so that it becomes compatible with segment being
targeted.
• To see if the staff’s performance is adequate and whether the requisite manpower is
adequate and also to analyze that what will be the new requirement of the manpower
during the product expansion.
The meeting is structured in the open forum so that for the feedback on the proposed
product design so as to generate creative ways to incorporate the new product efficiently
into the MFI existing systems. Openness is critical to dealing with the likely resistance to
introducing a new product because of the uncertainty involved in an organization’s
evolution.
CHAPTER FOUR
4.1 Existing procedure for making members involve:
Selecting the concerned location depending on the number of known members in

the area and then identifying those members who are ready to form members.
Members being formed, asking them to promote the utility of the product to other
people in that area and also having open discussion with the members of the new
area
\
Inviting them to Shrilekha Bank to make them aware about the requirements to be
fulfilled for the loan to be taken.
Fulfilling the entire paperwork requirement and other conditions such as a

minimum group of 10 members, who can take the loan, then inviting them at the
Canada corner for the “Mahila Bachat” meeting.
In the “Mahila Bachat “meeting making them aware once again about the product
and how it needs to be utilized and also having an open forum discussion about any
Conducting
apprehensions,the which
lucky draw for the have
the women time regarding
and date atthe
which
loaneach grouporhas
product, anyto other
come
for loan taking and also taking attendance 22
that whether all the member s of each
aspect
Finally
group anddisbursement of loans
the group leader wereinpresent
the Canada corner and MG Road branch of
in the meeting.
Shrilekha on the due date and time.
4.2 Existing product:
The existing loan product is for the women only .It comprises of all those women who
need money for some income generating activity. It may involve women from any class,
caste but the emphasis is that it should be used for some income generating activity rather
than being used for the consumption purpose. For that it’s necessary that proper training
is given to women that it’s there money and if they use them judiciously it can be used for
developing a path to self dependence.
Each self-help group comprises of a minimum of 10 members and a maximum of 20
members .Its preferable that there should be at least one or two members in each group
who should be educated. The group leader is decided among the members themselves. It’s
unto them that whatever criteria they want and whosoever member they want can be
chosen as the group leader. But it’s suggested to them that if the group leader is educated
it will be helpful to them. The staff of the branch gives full support to the group in form
filling and also helps them in identifying the requirement to be fulfilled
The members have to pay an initial amount of Rs 160, which has been divided into:
Bachat saving account Rs 50

Bachat gat mritunjay account Rs 50
Printing and stationery account Rs 50
B-Class membership fees Rs 10
Table 4.2.1 Distribution of initial amount for membership
Loan amount Rs.3000
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Duration 20 months
Per month installment Rs 226
Total mount to be paid back Rs 4520
Amount in Saving account (compulsory Rs 1000
saving)
Net amount paid back Rs 3520
Interest paid on loan Rs 520
Table 4.2.2 Loan amount
The major documents that need to be attached to the form include
• Two photos
• Signature of two guarantors
• Application form regarding the requirement of the loan
• NOC form (in case unable to pay any amount the amount in the saving account will
not be paid back)
• Signature of the group leader
• Signature of the earning household member
• Promissory note
• Signature of all members of the group to identify the member and take responsibility
of each other.
• Household members details (educarion, relationship, age, occupation, earnings)
• Any other major illness
• Household asset profile form and other information like loan taken, bank account if
any
• Cross-checking form (to be handled by the field officer)
The major slum areas within Nasik where loan has already been disbursed involve:
• Ramwadi
• Shrinagar
• Hanumanwadi
• Gouli chowk
• Kantinagar
• Malhar khan
• Makwalabad
24
• Kattiwadi, takkarnagar
• Nilgiri colony
• Ashok sathambh
• Shivnagri
• Cannada corner
• Naag chowk (panchavati)
• Sharanpur colony
• Sarda samkool
• Ashoknagar
• Harikishn colony
• Ram-sethu pool
• Gangapur
• Anandvali
• Nangal Nagar
Before going for the market research I decided to take semi- structured interviews of
those women who have already become the members of our “Bachat gat scheme” to
analyze that what are the problems being faces by them, there household conditions, the
major sources of income and expenditure, how they plan to utilize the amount. These case
studies involve those members who have recently accepted the loan.
4.3 Case Studies

CASE STUDY –1
Name: Nanda Ilma

Age: 42
Education: 10th pass
Group number: 15
No of members: 10
Area: Canada corner (she came to accept the loan, of Rs 3000 from us with her group)
Nanda lives with her husband and four children .In total there are 8 members in the
household including his husband’s father and mother who are totally dependent on the
family for sustainability. She is a vegetable vendor earning an income of Rs. 700-800 per
25
month. Most of the members of her group of bachat gad are either into washing of
utensils or are vegetable vendors they live nearby and have almost homogeneous
economic status. Her husband is a laborer who generally earns Rs.100 per day but he
remains employed for not more 20 days of the month. He is addicted to alcoholism and
ends up spending some 10-20 rupees per day on it. For the time when he is not working,
he simply sits back at the home. Fight between the couple almost happens every two
days. Nanda is worried that her husband will never give up alcohol. She told that her
alcohol is one reason that she is not able to save money in the house. She is already a
member of Swaran Jayanti Rozgar Yojna. There she has a group of 15 members, have or
deposit 100 rupees per month. After depositing this amount for one year regularly, one
can take loan of 5000 rupees. She has not told anyone in the home about her this
investment as she, fears telling this to her husband will end up loosing the money. She
says that her group has so much co-ordination that in case anyone has a genuine reason of
not paying the installment, then the groups helps her in paying it so as to maintain the
regularity.
She said that she wants to utilize the loan of bachat gat loan for paying up some previous
debts of kirana shop, other loan that she has taken at high rate of interest (10 percent it per
month). The rest of the money she wants to invest in her business so as to generate her
income and increase it simultaneously.
Major areas of expenditures:
1. Education fees of children
2. Food, clothing etc.
3. Medical expenses of old parents
4. Consumption of alcohol, tobacco etc
5. Loan repayments.
CASE STUDY –2
Name: Malti kumao
Husband’s name: Dhanti
Residence: Anandvalli
Group number: 27
No of members: 12
Area: Canada corner branch (she came to accept the loan, of Rs 3000 from us with her
group)
26
Malti lives with her husband and three children. His husband is a contractor, he does not
remains employed for almost four month during the raining season and therefore during
these days he has to remain dependent on her wife for household income. Malti herself is
a tailor and she has been in this profession for last 10 years, she is also into papad
making, which she directly sells to the small restaurants and dhabas. Initially days of her
marriage, she had a peaceful life and there were no major financial difficulties as she has
a six-room house, which she used to rent and generate income for household expenses.
But some three years back she started facing some major health problems, doctor told that
she has two holes in the heart and they will need a major operation. She was almost on
the deathbed, however his family took a loan of 2 lakhs from the bank at the rate of 17
percent. She was able to get well after that operation, but that health crisis has almost
turned her financial conditions very weak. She wants to repay the loan as fast a possible,
for that she wanted to sell two rooms of her house for 1.5 lakhs but all in vain. Now she
wants that atleast from this small loan of 3000 rupees she can start back her business of
papad making and tailoring, so that she can pay fees of her children’s school and also
incur her daily household expenses.
CASE STUDY-3
Name: Usha bharati
Husband’s name: Umanath
Residence: Gowli chaal, Mangal Nagar
Group number: 22
No of members: 12
All the members of the usha’s group are into some activities, such as, washing utensils,
cleaning the school, nurses in small medical center etc. mot of the members are able to
average income of more than 1000-1500 rupees per month. Most of the husbands of the
women are either rickshaw puller or labour workers with an average income of 2000-
3000 rupees per month.
Usha told that most of the amount taken for the loan was utilized in paying up the
admission fees of the children into the college and very few amount was left for
productive purpose. She was highly interested in getting her children educated .She also
told that she will trying repaying the loan early than the due date so that she can take the
next loan. Taking loan from the external sources is very costly as the loaner ends up
paying up huge rate of interest (as high as 20 percent per month) most of the members of
27
this group were quite satisfied with loan repayment schedule and the compulsory saving
scheme with it.
CASE STUDY –4
Name: Shakeen
Husband’s name: Abdul
Residence: Joshiwada
Group number: 22
No of members: 10
Shakeen is a housewife; she is also the group leader of her group. She has a family of four
members including herself, one son and daughter who are both studying in first year and
second year respectively. She wants that not only her son but her daughter should also be
educated; so that she can understand what is good for her and can stand on her own feet.
Her husband is a rickshaw driver. Most of the women of her group are into the profession
of tailoring which is generally done at there own residence through which they are able to
earn small amount of 400-500 rupees per month.
Most of the men in those areas are into the profession of contractual labors, rickshaw
drivers, service etc.the major expenses of the shakeen’s household involve:
Education Rs. 6000 / annum
Food/clothing Rs. 2000 / annum
Electricity (leased connection) Rs 150-200 / month
Marriages: Rs 50,000-60,000
Sources of loan borrowing: loans from relatives, peer members, money lenders etc.
Shakeen told that in there religion the girls generally get married at very young age and
are not much educate, but she wants that she should make people aware about the need
for education. She also told that due to the male dominated society most of the women
end up paying the loan amount to there husband as they are not aware of how to utilize
this amount. She said that it’s a new beginning for her as with this loan she will try
expanding her business and also involve other ladies into that.
28
CHAPTER – FIVE
5.1Pilot Testing
“Treat the customers as an appreciating asset” Tom peters, Built to Last
The most valuable information for the MFI is its customers, its critical that MFI
understands the customer’s needs and preferences. Because there acceptance will finally
determine its success. The pilot test is designed to garner market information in a
controlled way by offering the prototype to limited number of customers. The pilot test
provides not only a reality check, but will provide us with an opportunity to refine the
product before its initial rollout.
Steps for conducting the market research:

• Selecting size, location and target sample
• Establishing benchmark for analysis and refinement
• Determining the optimal duration
• Evaluating the result
The first step involved is choosing the sample size. The major criteria, which we
considered while choosing the sample size, involved:
i. The desired precision of the survey
29
ii. The probability distribution of the variables that survey seeks to measure in
population.
iii. The choice of sampling (multistage random sampling)
iv. The number of variables (household assets, income expenditure gap, women’s
activities, social indicators)
We decided choosing a sample of 1000 households .The different areas that need to be
covered in the sampling process comprised of both those area the product where the
product has already been introduced and also those areas where we want the product to be
introduced. We selected some 10 areas on the basis of that. But before going for the
sample survey it was important to decide the time and resources that will be utilize in the
sample collection. We decided that we would target that the whole process gets completed
within a period of 15 days. For that we recruited nine MSW students from the college,
those who were interested and trained in doing the survey collection. Mostly the students
were in second year.
The areas chosen for the survey and the candidates were as follows:
• . Anandvalli: Sonal Patil
• Satpur: Padmini
• Panchvati: Poonam
• Upnagar: Dilip
• Canal road: Manoj
• Takali: Rajay
• Panchvati: Nikam
• Vadalnaka: Gomsale
• Rajiv Nagar Sukhada
• Vinay Nagar
5.2 Sampling method

We tried sampling all the non-client households. It would have been time consuming if
we have to build an accurate list of all the households in each survey area. We avoided
this task by employing a two-stage technique called equal proportion sampling (EPS)
cluster survey design method or EPS method. The EPS method requires no preparatory
work other than defining of boundaries of each survey site. The random selection of
30
households is done at the same time the survey is conducted. The boundaries were
identified by going for a transact walk so as to identify landmarks in all directions, so as
to build an outer perimeter of where client households are located.
In this our survey first identifies a central point in the area it’s covering and then divide
the area into four quarters. From this central point the survey team selects a random
direction by spinning a pen on a flat surface and noting the direction in which it points, if
there is a team of two members in the same area then the next interviewer spins to select a
second direction to follow. The survey team took all the care in determining the walking
route to avoid unintended bias
Fig: 5.2.1 Quartile for a survey area
Quartile 4 Quartile
1
Quartile 3 Quartile
2
All care was taken that no particular section of the locality was excluded. So it was
decided that size of the interval would depend on the density of the households and
approximate area of the slum being surveyed.
Describing each survey site

In the course of surveying the non client house it was also instructed to the surveyors to
make notes of there general impressions of household quality, level of infrastructure,
population density and any other notable characteristics of the area. The following
questions indicate the specific information that should be recorded about the survey area.
31
• How far is it to urban Nasik?
• What is the quality of the main roads serving the area?
• Does the site have piped public water?
• Doe the site have electricity?
• Do residents have the possibility of collecting woods?
• What are the major sources of employment around the site?
• What are the major sources of fuels in this area?
• Does the area have cleanliness, or, are there any health issues?
Limitations:
• The major limitations which hampered the survey was the weather conditions which
sometimes restricted us from going to those areas which were heavily flooded with
water
• Non response errors due to lack of interest of respondents
• Paucity of time
5.3 Designing the Questionnaire:
COMPONENTS
DEMOGRAPHIC
POVERTY CHARACTERISTICS
INDICATORS
Human Dwelling Asset Sources Other

Resource Indicators Indicators Of Indicators
Indicato Loans
r
32
Fig.5.3.1 Indicators and underlying components
The major criteria for indicators involved:

• Practical
• High quality
• Not too sensitive (can be observed and asked)
• Reliable (low risk of falsification or error)
• Simple (direct and easy to answer)
• Time efficient (can be answered rapidly)
The indicators included in the final questionnaire were:
Human Resources Income/ Dwelling Household Others

Expenditure Assets
• Age and sex of • Source of • Ownership status • Assets and • Types of
adult household income and • Number of rooms values of loans they
members total income • Types of roofing land owned have taken
• Occupation of of the family materials • Number • Different
adult household • Amount of • Types of exterior and value saving habits
members expenditure walls of livestock • Social
• Number of incurred on
• Types of flooring
resources activities
female members food, • Ownership • Bad habit
• Observed
above 16 years clothing and of (Such as
structural
other things transportati smoking, alcohol
conditions of
on etc.)
dwelling
• Ownership
• Types of
of electric
electricity
appliance
connection
• Types of cooking
fuel used
33
• Sources of
drinking water
• Types of latrine
Table 5.3.1 Indicators included in the Final Questionnaire (Source: www.cgap.org)
5.3.1 Questionnaire Detailed Information
Section – A:
Family Structure
Purpose: Characteristics- such as the number, age, health, education, and occupation of
household members – represent indicators of the household resources in the form of the
human capital. The purpose of this section is to quantify the key aspects of the
household’s investments in human capital. Specific objectives including determining the
composition of the household and recording other aspects.
Household adults:
Marital status of the household: A household head can be a male or female. This
category helps us in knowing the marital status of the respondents
Main occupation: This refers to the type of activity done most often by the household
members on daily basis. In this we are specifically interested in knowing about the work
being done by the female members of the household specifically above the age of 16.This
information has been included so as to get an idea that how many adult female members
are into the activity for generating there livelihood
Amount of loans borrowed: This provides information of the extent to which the
household has taken advantage of some other schemes and whether it’s associated with
any MFI and what is the amount of loan borrowed.
Clothing and footwear expenses: Household expenditures on clothing and footwear can
reflect the relative poverty or wealth of the household in many cultures. Here
expenditures are limited to those made by verified household members and do not include
gifts to the household..
34
Section-B
Dwelling related indicators:
The quality of housing is partially determined by the relative poverty of a household.
Indicators of dwelling quality include not only the size of the house, but also the
durability of the materials used in the construction and the extent to which it is kept in
good conditions. Finally the indicators of facilities, such as toilet facility and access to
drinking water, can also measure the aspects of its quality. Specific measurement
objectives are to access the quality and size of the household dwelling relative to others
within the local area, as well as the quality of facilities available to and used by the
household.
Number of rooms: This defines the number of rooms used by the household for its living
quarters. The definition of what constitutes a room needs to be fit to specify the local
condition.
Types of roofing material: This question requires that the common types of materials
used in roofing be identified, the category of choices defined and sequenced in order from
lowest to highest quality, durability and cost.
Types of exterior walls and floors: The choice of exterior walls and floors will differ by
locality. However the sequence of choices should reflect an improvement of quality,
either in durability or cost
Conditions of dwelling structure: This question lies on the interviewer’s subjective
assessment and assumes that the interviewer is able to view the dwelling structure.
Cooking fuel: The type of primary cooking fuel will reflect location specific condition.
Sources of drinking water: The sources of drinking water will be determined by the
local conditions. In general water sourced from open bodies of water, including open
wells, are of lower quality than drinking water accessed through closed systems
Section-C
Other asset based indicators:
Accumulation of assets is strongly influenced by household income levels. Poorer
households use income to meet basic needs and have little extra to invest in durable
assets. Measuring the value of certain types of consumer durables assets can signal
difference in relative poverty, so that a complete valuation of all household assets is not
necessary.
35
Size of land holdings: Land ownership is a good indicator of wealth in many developing
countries. The amount of land owned by a household refers to the size (acres, hectares,
and other measures) that is owned by all household members.
Value of livestock assets: The animals can be an important asset for the household.
Sometimes, however, households may be reluctant to number or value the animals. Also
areas that are primarily urban are less likely to have large animal assets.
Value of transportation related assets: The ownership of means of transportation can
delineate differences in relative poverty.
Value of appliances and electronics: All major appliances and electronics are considered
good indicators for differentiating relative poverty levels
5.4 Training Field Survey Team

Interviewing training followed a progressive format aimed at building skills step by step.
Our interview training took two days. Since most of the interviewers were in the second
year of MSW so it was not much difficult in raining them the following stages were
followed in training them.
Stage –1:
Summarize the background, purpose and methodology of the survey
Format: Brainstorming and roundtable discussions

Time: Half day
Interviewers play an important role in collecting the quality of the data. They are the
individuals who will convincingly present the study to the respondents, guarantee that
wording of question is followed. To ensure that the interviewers do their jobs well; they
were given an overview of:
i. The purpose of the study
ii. The sampling frame to be used for identifying households
iii. The field operations plan.
iv. The role of the interviewer and principles of good interviewing.
v. The potential sources of error.
Defining role of the interviewers and review principles of good interviewing. The
following are the important points to highlight about interviewer’s role and art of good
interviewing:
36
• Be open minded at the timing of interviews for the survey
• Be rehearsed to the point that questions can be asked using the precise wording
written.
• Know the words well enough to add clarification and encouragement.
• Maintain a neutral stance on the questions being asked
Discussing major sources of error in the field and how to control the errors. Some
common sources of error in the field are:
• Sample selection error: These may be due to temptation to exclude certain clients or
locations for reasons that do not follow the sampling frame.
• Non-response errors: They usually occur when households are not at home or they
refuse to participate. To avoid that interviewer need to visit this household at later
time.
• Interviewing errors: Interviewers in an awkward, tiring, or offensive manner can spoil
the quality and extent of cooperation of the respondent. To avoid such a situation the
interviewers should know the questions thoroughly.
Stage-2
Understand the content of the questionnaire
Format: Informal discussion with questions and answers

Time: Half day
To train staff it was important to make them understand its contents and how to record the
responses. It was recommended to the survey team:
• Review all questions to identify their purpose
• Differentiate between response choices
• Explaining ordering of questions
• Clarifying definitions
Stage - 3
Standardize the translation of questionnaire into local language
37
Format: Small groups to translate, large group discussions to review translation
Time: Half day
Since the question paper was in English therefore it was important that the survey team
translated it into Marathi so as to understand the exact meaning of each question. for this
initially small groups were made for the purpose of translation and then finally all the
groups combined together to review the accuracy of translation of the questionnaire
Stage - 4.
Practice interview in local language
Format: Small group of three interviewers to rotate roles of interviewer , respondent

and observer
Time: Half day
It helps the survey team in practicing interviewing. Practise helps the interviewers in:
• Monitoring for consistency across language
• Building familiarity with exact wording and flow of questions
• Build confidence in the interviewing skills
Activities of two days are:
Day 1 Day 2
• Review study • Review contents of questionnaire
• Purpose of study • Standardize translation of question
• Sampling frame to be used for in local language
identifying households • Practice interviewing in local
• Field operations plan language
• Role of interviewing and

principles of good interviewing
• Potential sources of error
Table 5.4.1 Two Days Training Activities
38
CHAPTER SIX
6.1 Observation and analysis of the slum areas covered
We tried to analyse each key area from a three dimensional perspective. As I believed that
survey analysis alone cannot capture the complexities of poor household’s reality and
livelihood. There were various other indicators apart from those in the questionnaire,
which needs to be looked upon to identify not only the economic conditions of the people
living in these slum areas but also there social, cultural conditions which plays an equally
significant role in designing of the product.
For this purpose we tried to cater information about the area not only through sample
survey but also making observations about the demographic conditions of the area, status
of women in the area, infrastructural facilities etc and also going through individual case
studies to have an insight about the living conditions of the people, knowing about there
life cycle and understanding how our product can play a role in changing the income
generating cycle of the people and how much significant our product can to the segment
(women) to which we are trying to cater.
6.1.1 Area–1
Area covered: Takali and Panchvati
39
No of team members: 2
Observations (demographic, social, cultural)
Takali: the takali slum area has been divided into five regions:
Gitai Nagar Slum Area (25)

Samta Nagar Developed (50)
Takali Ved Nagar Slum Area (15)
Adivasipada Slum Area (20)

Bheem Shakti Nagar Slum Area (30)
In takali the people have been living from a very old time, almost from three generations
people have been living there.
Gitainagar: In gitainagar most of the people are illiterate..On an average every

household has 5-6 members. Most of the houses are kucha; the area is of Nagar Palika
which charges an annual rent of 500-600 rupees from each household. The area has no
public toilet facility and most of the people go in the open. Most of the households are
BPL cardholders, although they have ration cards but they said that it’s almost of no use
to them. Large number of households is economically weak and survives on one meal per
day. The area also has a weak infrastructure, kucha roads, and no cleanliness, which leads
to several health problems. Most of the men and women in this area are labor workers,
but there is a disparity in the wages being given to men and women as mostly men get 50
rupees per day and women get 30 rupees. Initially people had illegal electricity
connections but after the govt. interference now the households do not have electricity
facility
Samta Nagar: The samtanagar area has got approximately 1500 households. The overall
infrastructure of this area is quite better; it has good plastered roads, streetlights. Most of
the people have their own premises. All the houses are electrified, they have there own or
shared electricity connection.. Generally the male members over here are into the service
such as govt. employees, company job, SME.Female members are also actively into their
small businesses of either tailoring, or selling clothes. Most of the children go to school
and people over there well awaked about the significance of education, they are also
40
aware about the family planning. The 60 percent oh the households have there own ration
cards. The general population has been divided into schedule caste being more than 70
percent, the Muslim population in this area being 4-5 percent. But people in this area
share a very cordial relationship. There is already one Shri Samarth Sahakari Bachatgad
scheme in the area and most of the people have taken loan ranging from 20,000-30,000.
People in this area are quite aware about these schemes and they were enthusiastic about
are scheme and ready to accept it.
Ved Nagar / Bheem Shakti Nagar: This area mainly comprises of vadari samaj of Hindu
families. Most of the men act as intermadiatories, who are sell utensils bought from the
distributors outside people within nashik. Some women are also into the same profession
of selling utensils and they generally need small amount to pay as an advance to the
distributors. Some people are also employed as government servants.
The household conditions in this area are quite fine. Most of the houses are pucca house,
well plastered having iron sheets roofing. These household have all the basic items
required for sustainenance. There are legal electricity connection in the households a and
some are income tax payer. Also. In this area we also found some members who have
already taken loans from our bachatgad., and are in saving habits.
The women are also into the same job and are able to earn a monthly income of 3000
rupees. The literacy rate is low in this area. There is one lady in this area that belongs to
Republican Party of India (RPI). She is a highly influential in the area and most of the
people respect her. Her political hold is quite visible in this area and all the people obey to
whatever she says.
Adivasi pada: Most of the people in this area belong to kahli samaj.the population is a
mix with people having diverse economic background from people ranging from very
poor to medium poor. Some people are into the fishing trade for which they prepare there
own nets which need small investments ranging from 1000-5000 rupees. Most of the
women do not go out for job and prefer some jobs such as papad making by sitting at
there place itself. The literacy rate of the population is a meager 20 percent. Most of the
families are conservative in nature and it’s very difficult to extract some information from
them. They were afraid to give surveys as once the same survey taken by mahanagar
palika has put them into trouble of leaving that area as they had to vacate there slum
areas. The house structure are mostly mud house with weak structures the place is quite
41
dirty with no roads , so it almost get cutoff during the rainy season. There is no overall
facility
Panchavati: in this area most of the people are agricultural laborers. They generally take
lands on rent or work as daily laborers. Men generally earn daily wage of approximately
50 Rs and women 30 Rs per day. The area has no electricity supply; no health care centers
nearby and most of the children are malnutrition. The women in this area work as laborers
or wash utensils, earning a very meager amount, its especially difficult for those women
who are widow as they have been boycotted from the society. In this area most of the men
are into the habit of alcohol consumption and at the end of day they end up spending
some 20-30 rupees per day on it. Most of the men are illiterate and they do not want their
children to be educated. The housing structure of there houses is very weak and
dilapidated they have to pay a monthly charge of 40 Rs for the water facility. The ration
cards they hold are of no good as such as they are not able to have access to any facility.
The condition of the women is not good as their husband has left some of the women and
they now live lonely with sole responsibility of the household on her. There is no
schooling facility for the children so most of the children either end up being rag pickers
or they start working in some shop at a very small age of 5-10 years.
In Panchavati there is one area named Moremala in which most of the people are either
working as agricultural labourers, some have their own land or some are working under
partnership. Here most of the women are into vegetable vendoring and bidi making. They
generally need working capital of 500 rupees for tore whole working to start and some
initial investment to get the license. Men in this area are ether labour workers or rickshaw
Pullers. People in this area are quite aggressive and fight over small issues. Men are
highly into alchohol consumption.
6.1.2 Area –2
Area covered: Upnagar, Canal road
This area has been divided into three parts:
Amarapalli Nagar 1000 households
Bhavna Nagar 100 households
Indra Nagar 500 households
42
The whole area comprises of the scheduled caste families.
Amarapalli-1: The first half-kilometer of this area has good living conditions; the people
residing in this area have good household assets. (Radio, television, gas, fan, cycle, etc).
The civil cleanliness in this area is good. People are very understanding and are interested
in taking loans, they were aware about our product. Some ladies (approx 50 percent) were
already taking the benefits of Swaran Jayanti Bachatgad Yojna Scheme. (Bank of
Maharastra saving scheme) it forms a group of minimum 12 ladies, which have to deposit
a minimum of 100 rupees per month. Children in this area were mostly educated (10th
passed) most of the men in this area were either govt employees in Press, ITI, Municipal
Corporation. Some of them retired and sustaining on govt. pension. most of the ladies
were into vegetable vendoring , tailoring job and in some where children were also
working they were painters. There was very few presence of alcohol consumption found
in this area.
Bhavna Nagar: This part of the Upnagar slum area, has 100 households. Most of the
people in this area were prone to one or the other disease. Most of the people were
employed as laborers and they were below poverty line. The household members were
dependent on govt. foe food etc. Most of the ladies were either household workers or into
goatery activities. The structure of the household was not good, most of the houses were
broken, and there was no electricity connection in the area. the area had high
concentration of alcohol consumption ,they were also into smoking cigarettes ,chewing
tobacco. Most of the people responded only on knowing that we are surveying for the
purpose of loan disbursement.
Amarapalli: -2: This is the second part of the Amarapalli, which comes immediately
after Bhavnagar.This area is highly unclean with lots of water getting filled up in this area
during the raining season. Most of the houses were giving foul smell; the people in this
area were also very untidy. In this area approximately 90 percent of the people are
alcoholic with strong presence of liquor (country made) found being sold at 18-20 rupees
and also people were found consuming ganja. Most of the households were not electrified
with some households found to be having illegal electricity connection. The sanitation
facility in this area was also very bad as most of the public toilet were in very bad
conditions. Genrally for cooking purpose very few households use the gas connection and
43
most go for wood, which costs them 3.50-4.00 rupees. The wood consumption per day
was found to be 3-4 kg. Most of the households were having ration card. The women in
this area were rag pickers (collecting of plastic, paper, and bottles). They generally go in
the morning at 9.00 am and come back in the evening at 7.00 pm. They generally sell
plastic at the rate of 5 rupees per kg.they have govt. sanctioned cards for it. These women
were not at all educated and they were not sending their kids to school. Many children
were into the same profession of rag picking. Some women were also found to be
involved in prostitution, as there was no other source of income for them.
Indra Nagar: This area was comparatively better than the other two areas. The
household condition was good as most of the household had all the assets for serving the
basic needs .the area was clean and there was good percentage of people who were
educated. Most of the male members in this area were into small businesses such as
pan/bidi shops, household utensils trolley, vegetable vendors, and collecting of papers.
The women were also into income generating activities such as vegetable vendoring,
house cleanliness, washing utensils, and also some women were operating small kirana
shops. They are able to generate 1500-2000 rupees through this activity per month. The
women were into saving habit; as they were part of some saving scheme i.e. Mahila
Milan. Some have taken small loans from this saving unit and some had taken it from
friends and relatives. the loans if taken from money lenders were very costly with a ROI
of 15-20 percent per month. The women generally take loan incase of any emergencies or
if they have to invest some amount in there running business. Some women are also into
catering businesses in which they easily get 100-150 rupees per day depending on the
seasonal demand. Some women are able to generate 10,000-15,000 rupees per during the
season of marriages. Mostly in this area ladies and gents take decisions together. The
people over here were quite skeptical about the saving schemes, as initially they had
invested some amount but later that unit was found to be fraud. So it took us some time
that our unit is a part of sarda groups, people were quite satisfied when they got aware
about the association of the product with sarda groups. Some people were also found to
be selling our forms at a rate of 250 rupees, so the people were made aware that the forms
are available from the bank free of cost and there is no need to get it filled from outside as
te band cooperates at every stage.
6.1.3 Area –3
44
Area covered: Wadalnaka, Rajiv Nagar and Vinay Nagar
Wadalnaka: This area is not much different from other slum areas of the nasik.there are
no road facilities in this area. Most of the time during rainy seasons large amount of water
gets collected in this area, due to which most of the people fall sick. There is no street
light facility and almost all the area gets dark at night. There is only one tap of Nagar
Palika and there remains a lot of water problem in this area. Most of the households have
legal electricity connection. Most of the men are either into the profession of laborers or
auto drivers and they work in Nasik Mahanagar Palika.illiteracy rate in this area is high
and most of the girls do not go for education beyond 3rd and 4th class. Most of the women
the Mahanagar Palika. The people are into the saving habits. Most of the women resided
in the house only and there are only 15-20 percent women who work as sweepers in one
or two saving association. The overall status of the women in this area is weak as all the
majors decisions are handled by the males only. Most of the women are illiterate and are
into some creative jobs such as forming of kalpath, belan, chorang, Ravi, patham (all
made from clay and other things). The women also have the habit of chewing tobacco.
Almost 50 percent of the households have gas connections.
Vinay Nagar: In Vinay Nagar most of the people have migrated from marathwada area
(parvani district of uttar pardesh) and have settled in this area just 7-8 years back. They
are very poor, but only few people have below the poverty line cards or ration cards (less
than 50 percent of the households). Most of the households in this area are muddy; there
is no electricity supply in the area. No infrastructure, which leads to a lot of hampering of
the passages in the rainy season, and also causes lot .of dreadful diseases there are only
two public toilets in the area, apart from that there is no sanitation facility. In this region
there are early marriages, which lead to lot more complication in the health of the women
and early pregnancies lead to further deterioration of the health of the women. The people
in this area are of fighting nature, alcoholic and consume afim, ganja and other narcotics.
In this area most of the women are into prostitution, due to lack of facilities and poverty.
There is not much health awareness among the women, due to which some women are
affected with sexually transmitted diseases. The men work seasonally as laborers earning
daily wages of 60-70 Rs but they do not do any work during the non working days and
45
spend their time playing cards, matka etc. The children are also not studying and work as
rag pickers, collecting plastic, waste papers etc., they have the habit of eating gutka, pan
masala In this area most of the people use of wood as cooking fuel (purchased at the rate
of 3.50 Rs per kg.
6.1.4 Area-4
Area covered: Anandvalli
Anandvalli is one such area, which has large number of female acting as the household
heads. This area is quite good in terms of cleanliness as people in this area are health
conscious and know what the hazards are if the area is not clean. Most of the women in
this are working either in some households for utensil washing, food making or they are
into vegetable vendoring.the women of this area were quite aware about the schemes and
they wanted to invest the loan amount into there business only. The male in this area are
into activities such as auto drivers, agricultural laborers, painters, and grocery shops, tea
stalls. Overall the infrastructure of these households is also good and the structure of the
houses is also fine. Most of he households have all the basic household assets-tv, fridge,
gas and some households have animal stocks too. The people have good social
relationships and most of the people in emergencies take loan from there neighbourers.
6.1.5 Area –5
Area covered: Vadalnaka, Rajiv Nagar and Vinay Nagar
This area is also not much different as almost all the observations were quite identical.
The same lacking infrastructure, there is one big drainage pipe in this area which due to
leakage gives a very foul smell and is also causing several diseases such as dengue,
malaria, fever etc, but the households were not too bad economically as most the
households have good asset profile, gas connections, electricity connection, although they
live in rented premises of one room apartments. Most of the male members are working
in nearby factories; some are drivers with an earning of approximately 2000 rupees. The
46
influence of alcohol in men in this area is quite strong. Both men and women are in the
habit of chewing tobacco. The females in this area are into the activities of washing
utensils and working in factories through which they are able to generate a monthly
income of 1500-2000 rupees the women generally take care of the financial conditions of
the household in this area but there health is not in good shape as most of them are
malnutrition. There diet is not adequate also men do not contribute much financially at
home and they spend most of the amount in playing card and alcohol. The youth of this
area are also unemployed. Mostly in this area people fall sick due to water borne diseases,
generally people use public water source for drinking. The panchvati area is almost the
same with most of the women either as bidi workers, vegetable vendors or washing
utensils.
6.2 Case Studies

6.2.1CASE STUDY-1
Address: Shivajiwadi, Wadalnaka, RD nasik-6

Details of the family members:
FAMILY DETAILS
Total number of household members: 5
Name: Kisan Laxman Bhoye
History of the family: Age: 50 years
Sex: Male
The family has been residing in this area Occupation: Hawker
for last 10 years. Mr. Kisan Bhoye has Earning: Rs 50 per day
total five daughters of which two are Name: Mayabai Kisan Bhoye
married and residing in the nearby area of Age: 45 years
Sex: female
their house. Most of there relatives are Occupation: Household servant
also residing in the same locality who Earning: Rs 750 per month
have shifted to this area some five years Name: Manisha Kisan Bhoye
back Age: 18 years
Sex: female
Details of the dwelling they are Occupation: Household servant
currently residing: Earning: Rs 450 per month
The dwelling has one room, it’s there Name: Guddi Kisan Bhoye
own house on the municipal land. The Age: 15 years
Sex: female
iron sheets have done the roofing. The Occupation: Household servant
exterior walls are made up of mud and Earning: Rs 400 per month
Name: Yashoda Kisan Bhoye

47Age: 10 years
Sex: female
Occupation: Student
bricks. The flooring is made of dirt. The overall structural condition of the house is sound
with no major repairing required. There is no electricity supply; the major source of
drinking water is piped public water and for sanitation they use public toilets
Social conditions:
The overall society in that area is almost homogeneous both in financial and other
aspects. Most of the people are below poverty line. But people in this area are very social
and they share their sorrows and happiness together. In case of any financial emergency
the bhoye family prefers to take money from their friends and relatives rather than going
to moneylenders.
Educational status:
All the family is illiterate except for one daughter who is going to the school the other
two daughters who are unmarried have left the school at a very young age. There is lack
of awareness in the family regarding the importance of education and what role it can
play in there lives.
Income / expenditure:
On an average the family has an annual income of 35,000 rupees. Most of there income
the end up spending for some basic needs such as food, clothing etc. the major
expenditure in this year have been of there daughter’s marriage for which they have taken
a loan of 10,000 rupees from there relatives. The average expenditure of this family is
40,000 rupees per annum.
Major changes:
Their life has been quite smooth. It was only when there daughter got a severe electricity
shock and she has to be admitted to the hospital; they realized that how important it is to
save some amount for such emergencies. Although she has recovered now. The first
daughter was married in year 2000 and has three children and the second daughter got
married this year only (2005).
Plans for the future:
They are quite satisfied with their lives and a have future plan of having there own
cemented house which is right know in the construction stage and the work had to be
stopped due to some financial lacking, so they want to know how our organization can be
of immediate help to them. Also they want that there economic status to improve and
some savings to develop so that they can marry there other three daughters
48
6.2.2 CASE STUDY –2
Address: Samta Nagar, Takali.
History of the family: FAMILY DETAILS

Vaishali was born in Mumbai,
goregaon slum area. She lived there Name: Sarji Rao Kamle
Age: 35 years
with her mother, father and brother. Sex: Male
Her both father and mother were Occupation: Laborer
Earning: Rs 400 per month
working but still they were not able to
generate enough income to sustain Name: Vaishali Sarji Rao Kamle
there livelihood. So vaishali at very Age: 30 years
Sex: Male
young age of 9 years started working. Occupation: Household servant
In 1991 she got married to sarji rao Earning: Rs 600 per month
kamle who at that time used to work Name: Shewas Rao Kamle
as a laborer for construction of the Age: 10 years
Sex: Female
houses. Initial three to four years of Occupation: student
her marriage were good. But than his husband got addicted top alcohol and started
beating her. In 1997-98 he started having an extra marital affair with some women.
Vaishali knew about it but could not say anything, as whenever she raised her voice there
was a dispute between her and her husband. In 2001 his husband married the other
women named mirabai.due to his in one room small house they have to live separately.
49
His husband provided no financial support, and also used to beat her. The status of
vaishali has not changed much and she lives with her husband who still daily comes to the
house at night in the drunken state. In 2001 vaishali started working outside, washing
utensils and she still does that but know she wants to open a small business as the income
from the work is not sufficient to educate her daughter.
Dwelling conditions:
His house is in a good locality but has only one room. It has roofing of iron sheet and
concrete walls and tiled floor. The house has electricity facility (shared connection) the
household uses public toilets for sanitation. The drinking water is accessed through public
tap. In the name of assets the household only have gas, clock and cooker.
Income/ expenditure
Vaishali earns a monthly income of 600 rupees only. The average annual expenditure of
the household is 2400 rupees of whose distribution is as follows:
Housing: - 100-150 rupees
Clothing: - 200 rupees
Medical expenses: -100-150 rupees
Education: -100-150 rupees
Festival: -500 rupees
Other expense: 1200 rupees, approx
Future plans:
Vaishalli wants her daughter to be well educated and for that she ants to start some saving
so that it can be used for her admission and other fee structures. She believes that once
her daughter is well educated, she will support her. She also wants to open a small
business in which she can work during her free time in the whole day so as to increase her
income. For this she wants that if she can get some loan that will be very helpful.
50
6.2.3 CASE STUDY-3
Address: Canal road
History of the family FAMILY DETAILS

Some 20 years back Chinda married the Name: Chinda Okha Ahire
Age: 66 years
second time after his wife expired. The Sex: Male
first wife had two daughters and the Occupation: kirana shop
Earning: Rs 2000 per month
second wife janiah gave birth to two
Name: Janiah Bai Chinda Ahire
sons. Initially Chinda used to work as a Age: 48 years
laborer and the situation of the Sex: female
household as financially very weak. For Name: Sharad Chinda Okha Ahire
the next 12-13 years they had to Age: 19 years
Sex: Male
struggle to survive. There income was Occupation: Worker in municipality
very low and on that expenditure of Earning: Rs 600 per month
students education had broken their Name: Siddharth Chinda Ahire

neck. They had a bed and few utensils Age: 17 years
Sex: Male
then in the name of household assets. Occupation: working in a shop
Their both sons failed in the 10th class Earning: Rs 1000 per month
and they started working. Six years before her both daughter got married; they were
married at the age of 16-17 years. Her daughter is well settled know. She had always tried
her best to give good habits and rituals to his sons and daughter she had never made any
difference between her son and daughter.
51
His son started working in Nagar Palika collecting waste and other son was employed. In
a shop. His husband’s health began to deteriorate and it was difficult for him to stand and
do something, so to have a sitting job. He opened a small vegetable shop with an
investment of 500-600 rupees. Later they opened a small kirana shop with an investment
of 2000-3000 rupees. At present it has an inventory of 12,000 rupees. It also has a small
PCO, which generates additional income.
Presently there economic conditions have improved. Janiah bai has also become a
member of chit funds and she has started joining more and more women into it. She
wants to improve the livelihood conditions of other women also who are struggling in the
same manner. Not only that she is also involved into other social activities like sending
children to school, dharnas against alcohol, resolving disputes. She has also become the
member of the Mahila Milan bachat scheme of the bachat gad samiti.being a part of the
mahila Milan she has developed a habit of educating people for developing saving habits.
She prompts women to go for saving scheme. She gets 500 rupees per month from mahila
Milan samiti and gets conveyance/food allowance of 200-300 rupees. The organization
also sends women for training to Pune, Mumbai etc. that gives her a lot of exposure. She
herself puts 100 rupees per month in saving fund and 20 rupees in daily collections of chit
funds.
Future plans:
She wants to shift from the slum areas to some good place and want that both her son get
married at the right place. She also wants more in kirana shop and also want to spend
more time in increasing the saving habits of the women in Mahila samiti.so this way she
wants to make other women self dependent
Household assets:
Item Value
Fan Rs 1000-1500
TV Rs 10,000-16,000
Gas stove Rs 1,200-1,500
Sewing machine Rs 4,000-4,500
Mixie Rs 1200-1800
Total value Rs 17,400-25,300
Table 6.3.1: Household assets
52
6.3 Observations and findings-1
6.3.1 Upnagar area
Upnagar
The Upnagar slum area is divided into three parts:
–Amarpalli- sample of 149 households
–Bhavnanagar-sample of 35 households
–Indranagar- sample of 20 households
Household details (male/female)
Amarpalli Bhavnanagar Indranagar
Average members /
5 5 5
HH
Ratio Of Males:
1.014 1.085 .9166
females
Females>16
T years 58 % 68% 52.8%
Table 6.3.2 Household details of male and female (Sources: Primary Survey)
Income / expenditure analysis:
Average annual income 49,495 42,035 54.122.2
Amount of loan taken 0 0 0
Exp food 14,251 13,338.23 15,266.6

Exp.housing 1681.4 1820.58 1761.0
Exp. clothing 1491.4 1782.35 1722.2
Exp.health 949.32 976.47 683.3
Exp.education 677.8 685.29 972.2
Exp. Religious functions 2302.64. 2555.8 2094.4
Annual average exp. 21381.67 53 21203.22 22500

Table 6.3.3 Incomes and Expenditure Analysis of Upnagar (Sources: Primary Survey)
Income / Expenditure Analysis:
INCOME/EXPENDITURE (AMARPALLI)
200000
150000
100000
50000
0
1
16
31
46
10
13
19
22
25
28
34
37
40
43
49
HOUSEHOLDS
INCOME EXPENDITURE
Figure 6.3.1 Incomes and Expenditure Amarpalli (Sources: primary survey)
INCOME/EXPENDITUE (INDRANAGAR)
70000
60000
50000
40000
30000
20000
10000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
HOUSEHOLDS
INCOME EXPENDITURE
54
Figure 6.3.2 Incomes and Expenditure Indra Nagar (Sources: primary survey)
INCOME/EXPENDITURE (BHAVNAGAR SLUM AREA)
140000
120000
100000
80000
60000
40000
20000
0
1
29
33
11
13
15
17
19
21
23
25
27
31
HOUSEHOLDS
INCOME EXPENDITURE
Figure 6.3.3 Incomes and Expenditure (BhavNagar) (Sources: primary survey)
Dwelling indicators:

(Percentage) (Percentage) (Percentage)
No of rooms/ HH- 1- 51.4 (percent)

1- 73 (percent) 1- 61.1 (percent)
percentage of total 2- 34.2 (percent)
2-27 (percent) 2- 38.9 (percent)
samples 3- 14.4 (percent)
Iron sheets-100 Iron sheets-100

Iron sheets-100 (percent)
Roofing material (percent)
(percent)
Iron sheet-88.2 % Iron sheets-84 % Iron sheets-61.1%

Walls Mud walls-10 % Mud wall-5.8 % Mud wall-11.62%
Cement plaster- .8% Cement plaster-10.2% Cement plaster27.27%
55
Amarpalli Bhavnanagar Intranasal
Housing structure
Need repair 89.2 percent 85.2 percent 83.3 percent
Sound structure 10.7 percent 14.7 percent 16.6 percent
Electricity conn.
Shared 57.7 percent 23.5 percent 38.8 percent
Own 32.2 percent 38.2 percent 55.5 percent
No 7.3 percent 38.2 percent 5.5 percent
Cooking fuel
Gas 42.2 percent 52.95 percent 38.8 percent
Kerosene 34.2 percent 47.05 percent 55.5 percent
Others (wood) 23.4 percent 5.5 percent
Drinking water Piped public water Piped public water Piped public water
Public toilet Public toilet

Toilet facility Public toilet
Table 6.3.4 Dwelling Indicators Upnagar (Sources: Primary survey)
Asset Profile Matrix:
CLOCK FAN TV GAS

RADIO
A,B,I>70% A,B.I>60% A.B.I>50% A,B,I>50%
BED
COOKER
MIXER CUBOARD A,B,I>65 CYCLE
A.B,I>75%
%
S.MACHI W.MACHI CATTLE GOAT POULTRY
Table 6.3.5 Asset Profile Matrix Upnagar (Sources: Primary survey)
56
Saving indicators:

Home saving 30 64.7 33.33
Chit funds 50 47 44
Association 16.1 6 16
Bank account 26.8 26.4 11
Loan (money lender) 0 0 0
Loan (fri/rel) 0 0 0
Loan (bank) 0 0 0
Table 6.3.6 Percentage of People into different types of saving schemes (Sources: Primary
survey)
6.4 Observations and Findings (
Area- 2)
Satpur and Panchavati slum area
Total number of samples
• Satpur-126 households
• Panchavati-70 households
57
Income/ Expenditures Analysis
Satpur (Rs) Panchavati (Rs)
Total annual income 42,270 40,329
Amount of loan taken 456.316 0
Exp food 13,467 11,366

Exp.housing 3876 1702.58
Exp.clothing 1549 1485.35
Exp.health 1844.32 1251.63
Exp.education 1549.8 1808.35
Exp. Religious functions 1721 1221.56
Annual average exp. 22,636 21,918.2

Table 6.4.2 Incomes and Expenditure Analysis of Satpur and Panchavati (Sources:
Primary Survey)
INCOME/ EXPENDITURE (SATPUR)
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
1
43
46
10
13
16
19
22
25
28
31
34
37
40
49
HOUSEHOLDS
INCOME EXPENDITURE
58
Figure 6.4.1 Incomes and Expenditure Satpur (Sources: primary survey)
INCOME/EXPENDITUE (PANCHAVATI)
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
1
4
7
31
10
13
16
19
22
25
28
34
37
40
43
46
49
52
55
58
61
64
HOUSEHOLDS
INCOME EXPENDUTURE
Figure 6.4.2 Incomes and Expenditure Panchavati (Sources: Primary survey)
Dwelling indicators
Satpur (percentage) Panchavati (percentage)
1- 42.6(percent)
No of rooms/ HH- 1- 65.6 (percent)
2-46.8 (percent)
percentage of total 2- 29.85 (percent)
3- 11.1 (percent)
samples 3- 3 (percent)
Iron sheets-9.5% Iron sheets-29.85%

Concrete-16.6% Concrete-10.4%
Roofing material Tarpaulin-53.17% Tarpaulin-23.88%
Brick tiles – 14.2% Branch twigs – 6 %
Stones- 6.3 % Stones- 29.8 %
Walls
Iron sheet- 2.3 %
Brick stones-22.3 %
Mud walls- 20.6 %
Mud wall-71.67 %
Cement plaster- 62.6 %
Cement plaster-5.97%
Brick stones – 11.11%
59
Housing structure
Need repair 82.5 percent 88.02 percent
Sound structure 17.5 percent 11.9 percent
Electricity conn.
Shared 40.4 percent 77.6 percent
Own 54.76 percent 16.4 percent
No 4.84 percent 5.9 percent
Cooking fuel
Gas 77.7 percent 37.3 percent
Kerosene 19.0 percent 32.8 percent
Others (wood) 3.23 percent 29.86 percent
Drinking water Piped public water Piped public water
Toilet facility Public toilet Public toilet
Table 6.4.3: Dwelling Indicators Satpur and Panchavati (Sources: Primary survey)
Asset Profile Matrix (Satpura)
CLOCK FAN RADIO TV GAS

>95.2% >86.5% >41.2% >81.7% >77.7%
COOKER MIXER CUBOARD BED CYCLE

>79.3% > 46.8% > 54.76% > 71.4% > 59.5%
S.MACHI W.MACHI CATTLE GOAT POULTR

>12.6% >2.3 % >0 >.015% > 0%
Table 6.4.4 Asset Profile Matrix (Sources: Primary survey)
60
Asset Profile Matrix (Panchavati)

>88% >68.6% >41.79% >77.6% >50%

>95.5 >47.67% >50.7% > 77.6% >46.2%

>8.9 >4.4 % >3% >3% >5%
Saving Indicators:
Home saving 2.6 28.3
Chit funds 8.7 4.47
Association 8.7 10.4
Bank account 42.8 29.8
Loan (money lender) 2.3 2.9
Loan (fri/rel) 5.5 20.8
Loan (bank) 7.9 8.9
survey)
61
6.5 Observations and findings-3
Area- Anandvalli slum area

•Total number of sample households-100
•Average members/HH = 5
•No. of males = 231
•No of females = 233
•Ratio of male/female = 0.99
•Percentage of females>16 = 68.2
Income/Expenditure Analysis
Amount in Rs.
Average annual income 42,641
Nil
Amount of loan taken
Exp food 13,620
Exp.housing 2261
Exp.clothing 289.41
Exp.health 2100
Exp.education 268.05
Exp. Religious functions 846.15
Annual average exp. 25,497
Table 6.5.1 Incomes and Expenditure Analysis (Sources: Primary Survey)
62
INCOME/EXPENDITURE (ANANDVALLI)
300,000
250,000
200,000
150,000
100,000
50,000
0
1
10
13
25
40
55
16
19
22
28
31
34
37
43
46
49
52
58
HOUSEHOLDS
INCOME EXPENDITURE
Figure 6.5.1: Income and Expenditure Anandvalli (Sources: Primary survey)
Dwelling Indicators
Anandvalli (percentage)
1- 58(percent)
No of rooms/ HH-percentage of total
2-27 (percent)
samples
3- 15 (percent
Iron sheets-2 %
Roofing material Concrete- 60%
Brick tiles – 1%
Stones- 37 %
Iron sheet- 2 %
Walls Mud walls- 36 %
Cement plaster- 62 %
Cememted-64 %
Floor Dirt-10%
Tiles-26%
63
]
Housing structure
Need repair 15 percent
Sound structure 85 percent
Electricity connection.
Shared 59 percent
Own 28 percent
No 13 percent
Cooking fuel
Gas 84 percent
Kerosene 12 percent
Others(wood) 4 percent
Drinking water Piped public water
Toilet facility Public toilet
Table 6.5.2: Dwelling Indicators Anandvalli (Sources: Primary survey)
Asset profile matrix Anandvalli:

>85% >86% >44% >73% >84%

>90% > 56% > 55% > 81% > 65%
>22 % >2 % >3% >.4% 0
Table 6.5.3Asset Profile Matrix Anandvalli (Sources: Primary survey)
64
Saving indicators
Home saving 1
Chit funds 0
Association 1
Bank account 14
Loan (money lender) 7
Loan (fri/rel) 7
Loan (bank) 10
Table 6.5.4 Percentage of People into different types of saving schemes

(Sources: Primary survey)
6.6 Observations and findings
Area covered: Wadalnaka and Rajiv Nagar

Total household samples
• Wadalnaka -13
• Rajiv Nagar –33
Wadalnaka Rajiv Nagar
Average members / HH 5 5
Ratio of Males: Females 1.13 1.21

Females>16 years 73.6 % 49.3%
65
Income / Expenditure Analysis:
Wadalnaka (Rs) Rajiv Nagar (Rs)
Total annual income 41,805 35,359
Amount of loan taken Nil Nil
Exp food 15,367 9,882

Exp.housing 1416 1,000
Exp. clothing 1267 1302.94
Exp.health 2170 876.47
Exp. education 1067 876.647
573.52
Exp. Religious functions 943.43
Annual average exp. 24,052 15138.24
Table 6.6.2: Incomes and Expenditure Analysis (Sources: Primary Survey)
INCOME/EXPENDITURE RAJIV NAGAR
100000
80000
60000
40000
20000
0
1
11
13
15
17
19
21
23
25
27
29
31
33
35
HOUSEHOLDS
INCOME EXPENDITURE
Figure 6.6.1 Income and expenditure Rajiv Nagar (Sources: Primary survey)
66
INCOME/EXPENDITURE WADALNAKA
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
1
15
22
36
29
43
50
57
64
71
78
85
92
99
127
106
113
120
134
HOUSEHOLDS
INCOME EXPENDITURE
Figure 6.6.2 Income and Expenditure Wadalnaka (Sources: Primary survey)
Dwelling Indicators
Wadalnaka (percentage) Rajiv Nagar (percentage)
1- 61.8(percent)
No of rooms/ HH-percentage 1- 100 (percent)
2-30.9 (percent)
of total samples
3- 5.7 (percent
Iron sheets- 80.5%
Iron sheets-96.96%
Tarpaulin-2.15%
Roofing material Tarpaulin-3.03%
Brick tiles – .007%
Stones- 7.9%
Iron sheet- 35. % Iron sheets-93.93%
Walls Mud walls- 46.76 % Mud -6.07%
Cement plaster-12.9 %
Brick stones – 23.02%
67
Housing structure
Need repair 28.7 percent 96.96 percent
Sound structure 71.2 percent 3.03 percent
Electricity conn.
Shared 23.02percent
Own 66.9 percent
No 25.17 percent 100 percent
Cooking fuel
Gas 61.15 percent
Kerosene 21.5 percent
Others (wood) 15.8 percent 100 percent
Drinking water Piped public water Piped public water
Toilet facility Public toilet Public toilet
Table 6.6.3: Dwelling Indicators Wadalnaka and Rajiv Nagar (Sources: Primary survey)
Asset profile matrix (Wadalnaka)

>96.4% >68.5% >26.6% > 74.8% >61.15%
>82.7% > 49.6% > 65.46% > 74.8% > 27.5%
>8.6% 0 0 0 0
Asset profile matrix (Rajiv Nagar)

>18.18% >9.09% 0 15.15% 0
>15.15 0 9.09% >63.6% > 18.5%
0 0 0 0 0
Table 6.6.5 Asset profile matrix (Sources: Primary survey)
68
Saving indicators:
Wadalnaka (percentage) Rajiv Nagar (percentage)
Home saving 0 0
Chit funds 2.8 0
Association 17.26 0
Bank account 0 0
Loan (money lender) 0 0
Loan (fri/rel) 0 0.03
Loan (bank) 28.09 0
survey)
6.7 MAJOR FINDINGS
• All the slum areas are homogeneous in nature either in terms of income or expenditure.
In terms of their living style, food habits, household activities as can be seen from the
tables of different regions.
• Majority of the households are able to generate sufficient income to suffice their
consumption needs. Since most of the women are already into income generating
activities, therefore they will use the loan amount for productive purpose only Its
important that training need to be provided to the women so that those women who are
not into in any kind of activity can also go for it.
•Secondly, I found that most of the households need serious repairs, so if some small
loans for the repairing could be started they can be beneficial both to the bank and to the
members .The house repairing loans will be provided to those groups only whose
repayment has been regular and all the installments repaid
• With respect to collection its important that certain mechanism needs to be made so that
defaulters can be dealt strictly. Strictness should be laid on timely monthly repayments
69
Incentives in form of reduced ROI for the next loan, for those groups who repay the loan
timely. For that if required interest on the loan can be raised depending on the commercial
rates.
•The members should be encouraged to repay the loans before time. The repayment
should be weekly or monthly depending on the situation. Repayment installments should
be determined on the basis of the estimated flow of cash to the borrowing member group.
Any member or two defaulting in the group, the group should be considered liable for it
and rest of the members have to pay their members installment .For it, it’s important that
the group should be trained in repayment ethics. Such a mechanism will also help
mounting peer pressure on the borrowing members for timely repayment.
•Some professionals need to be hired who can continuously monitor and evaluate the
performances of the SHG’S. More and more women should be promoted to small
ventures such as tailoring shops, roadside vendors, beauty parlors, and formation of
bakery products. If possible they should combine together and form a small
entrepreneurship in which they can invest to gain more income. It will also develop
confidence, self-respect, and dignity.
•Mutual confidence and trust among members and peer pressure to substitute collateral
Changes in leadership through periodic rotation. Development orientation in approach
and involve in other socio – economic activities. Next loan to be given to any members of
the group only if the whole SHG has repaid the loan
6.7.1 Proposal of Housing Loan
•As housing is a productive asset for the millions who are poor and work out of there
home access to housing finance at long term, affordable rates is a primary necessity.
Furthermore providing women credit for housing helps empower them and gives them
greater control over their lives, homes and productivity.
• These loans include loans for repairing or replacing a roof, wall, floor or door, for
monsoon proofing, adding a room or kitchen, upgaradation etc. These loans should be
70
long term, with easy and pragmatic installments. These Loan amount may range from
Rs.500-5000. These loans will be given to the members by seeing there previous loan
repayments in Bachat Gad.
6.7.2 Desirable characteristics of the SHG’s
•Homogeneous membership with common socio and economic background, affinity etc.
•Group less than 20 members
•Groups must have set of byelaws and code of conduct for orderly functioning
•Regular meetings (monthly) and good attendance
•Creation of common fund and utilization for internal lending
•Maintenance of simple basic records viz. membership register, savings register, loans
register, proceedings register
•Mutual confidence and trust among members and peer pressure to substitute collateral
•Changes in leadership through periodic rotation
•Development orientation in approach and involve in other socio – economic activities
•Next loan to be given to any members of the group only if the whole SHG has repaid the
loan
6.8 Loan Collection Activities
Decentralizations of activities: The decentralization involves providing freedom to the

Banksathis and field workers to use different mechanism, which they can use for
collection of the repayment. They can judge area wise that whether there is a need of
training to the members regarding rules and regulations, incentives for regular payments
and penalties on members and the group for not abiding by the rules or too use other
mechanisms such as street plays for indulging them in saving habits.
Introduction of doorstep banking: This will help not only in giving personal touch to
the people but will also help in regulating the collection. For members sometimes it
becomes difficult and costly to reach the bank so to reduce there transaction cost its
important to provide them with the doorstep banking. But for that it’s important that the
scale of operations should be large enough to minimize the cost to the bank.
71
6.8.1 Introduction of fieldworkers: They act as an intermediatory between the
institution and the members
Responsibilities of fieldworkers
• Daily travel to designated urban area to collect money from banksathis and individual
bank members
• Advice members on specific questions and/ or concerns
• Teach banksathis how to record accounts and keep a ledger
• Train bank sathis and members on financial counseling, workings of savings, loans
etc.
• Assist members with loan application forms
• Conduct monthly meetings with constituent to answer questions, recruit members and
introduce new projects
• Play role in “parivartan programme” by teaching slum community about the slum
development program and how to apply for it.
• Keep records of there daily saving collections, loan repayment and new accounts
• Record transactions with the central processing desk-stored into bank’s database
• Each field worker can handle repayment and collection of some 75-100 SHG’S
6.8.2 Role of Bank sathis
Bank sathis: The bank members who have a leadership role in their community and can
help members with savings and loans
Responsibilities:
•Collect money from members for saving and loan repayment
•Monitor multi mode repayment especially weekly repayment for those women who are
daily wage earners.
•For that a mechanism of collection of the saving and ensuring that it is securely repaid
•Are responsible for recording payments in their ledgers as well as account books of the
members
•Teach members about the bank savings, loans, etc
•Recruit new members
•Assist bank with problem members that do not repay loans
72
•Participate in bank sponsored training sessions for financial counseling
•Work in conjunction with hand holders
•Offer guidance and leadership to bank clients
•Instill hope and confidence in poor, self employed women
6.8.3 Introduction of training during the loan disbursement activity
Calling for loan

disbursement
Training
10-15 members < Half hour
Final loan disbursement
Figure 6.8.1 Training schedule
Issues to be addressed in training

• Inclination towards saving habits through games or exercises: These exercises or
games should be designed in such a manner so that they can lay emphasis firstly on
what are the benefits of small saving and how that money can act as a safe keeper in
the long run. Secondly, it should also signify that how collective group can play a role
in making that small amount large.
• Information regarding different options for income generation: Several options
such as bakery, cloth weaving, tailoring and other small entrepreneurship which can
play a significant role in making them self dependent can also be made aware to them.
They will not only help them in starting income generation but will also act as making
them more and more self-reliable.
• How saving can benefit in the long run???
73
• Interaction with some NGO’S members who are benefiting from it: If some
interaction programs with other NGO women who are already benefiting from such
schemes are interacted with our members that will make them more confident that
how such schemes benefit them in the long run. It will also improve their self-
confidence and will make them aware about the outside world.
• Developing participatory approach: A reason for forming the groups, is a sense of

collectivism should be imbibed in them so that a mutual trust can be established
which could be later used for building peer pressures, when there is a need for
collection repayments to be made.
• Indicating the benefits of repaying at the right time: Future schemes should be
built in such a way so that can act as incentive for them to repay the loans at the right
time.
• Drive against alcoholism: Since alcoholism is one of the biggest problems with the
women. Which act as a hindrance for going them for savings, therefore it should be
taken care that how to make women aware about a drive against alcoholism in there
households.
• Drive for cleaning their areas: Since health issues are one of the important factors,
and health hazards are maximizing caused due to non cleanliness of the area, therefore
its important that they should be made aware about benefits of keeping there area
clean.
74
List of References
www.nabard.org
www.microfinancegateway.org
www.accions.org
www.cgap.org
www.safesave.org
www.myrada.org
www.microcreditsummit.org
www.alternative-finance.org.uk
75

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PRODUCT DEVELOPMENT FOR MICROFINANCE

(DESIGNING, TESTING AND LAUNCHING)

Gaurav Loomba (25015)

ORGANISATION TRAINEESHIP SEGMENT

MATO SHREE RAM PYARI BAI DHARMIK PRATISHTHAN, NASHIK

INSTITUTE OF RURAL MANAGEMENT, ANAND

I wish to express my deep and sincere gratitude to the Institute of Rural

I am thankful for the guidance and support rendered to me by Mr. Hemant

Gaurav Loomba (25015)

6.7.2 Major characteristics of the SHG’s 75

6.8 Loan Collection Activities 75

Survey Questionnaire Form 78

Table 1.1 Role of MFI’s and its impact on poverty 10

Figure 1.1 Traditional Approaches to Product Development 11

1. Microfinance can be a critical element of an effective poverty reduction strategy.

1.2 Microfinance poverty reduction nexus

Financial Results Impact on poverty

Saving facilities • More financial savings • Reduce household

• Enable consumption smoothening • Greater income

• Enable ability to face external • Severity of poverty is

• Reduce need to borrow from • Empowerment

moneylenders at high interest • Reduce social

• Enable purchase of productive

• Enable taking advantage of

• Reduce reliance on expensive • Severity of poverty is

informal sources reduced

• Enhance ability to face external • Empowerment

shocks • Reduced social

service • Reduce distress sale of

Table 1.1 Role of MFI’s and its impact on poverty

1.3 Objective of the present study

Analysis and Evaluation

Product Funnel Approach

Figure 1.1. Traditional Approach to Product Development

Traditional new product development involves:

• A dynamic process of client based product refinement

1.4.1 Team Building

1.4.2 Buy in Process

1.4.3 Market Segmentation

1.4.4 Market research

Secondary data –general market analysis

2.1 MATOSHREE RAMPYARIBAI SARDA DHARMIK PRATISHTHAN

2.2 Vision of the Organisation

2.3 Mission of the Organisation

2.4 Goals of the Organisation

2.5 Area of operations

3.1 Internal Preparation: Assembling the Development Team

The first step to methodological product development is mobilizing the organization to

3.1.1 Product Champion

SHRILEKHA NAGARI SAHAKARI BANK- ORGANISATIONAL HIREARCHY

CASHIER CASHIER DEFAULT ASSISTANT ASSISTANT

3.1.2 Cross Functional Team

Management information system: The organization has a sound management information

3.2 Institutional Buy In

4.1 Existing procedure for making members involve:

Selecting the concerned location depending on the number of known members in

Fulfilling the entire paperwork requirement and other conditions such as a

Bachat saving account Rs 50

Loan amount Rs.3000

4.3 Case Studies

Name: Nanda Ilma

Steps for conducting the market research: