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Interview of end users During my personal visit to MFIs I asked view questions from

the end users (customers) of Microfinance institute. I have taken interview of 25


people and I asked few questions to them. Which are mentioned under:Q.1 Are you regular or new customer?
Q.2 If you are a Regular customer, then can you please tell me your experience?
Q.3 Whats your opinion on interest rates?
Q.4 What you do with that loan amount?
Q.5 Does the Microfinance Institutions provide you any type of other benefits other
than just loan?
Q.6 According to you which is better, loan from local Zamidars or with MFIs?
Q.7 Have you ever faced any violation on you, if you could not able to repay the
loan amount?
The common replies are mentioned under:
Ans.1 Many of the customers are regular and take loan frequently.
Ans. 2 This was the best part and I enjoyed and felt good after hearing their
answers. I was amazed that, how can a mere amount of loan can change the life of
the people. I got many answers on experiences but the best experience I want to
share in this report. There was a woman; her name was Chandrika Ben Jadwa. I
asked her to share her experience before and after the loan taken from MFIs. She
was widow, with 2 daughters. After her husbands death she had taken mere Rs
3000 loan from the MFI and purchased Sewing machine, at that time her daughter
was 13 years old. And now her daughters age is 23. She came with her daughter,
her name was Jaya and when I asked Jaya that what she is doing. I was perplexed by
her reply. She replied me in English, and told that she worked in Baroda at call
centre. She was so confident, that I couldnt believe that time. Her mother told that
she educated Jaya till 11th at Village schools and after that she sent her at Baroda
for further studies and due to Micro loans, she could able to pay her tuition fees.
From that point I realized that what is the power of Micro loans and how it can
change the life of the individuals. Other experience like increase the living standard
of the poor, improve in health condition etc.
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Ans. 3 When I asked them about the interest rate. Then I got the mixed answer.
Some said that rates are high and some said that it is nominal. But one common
answer that I found out that the repayment terms is fair and one can easily
understand. Most of the MFIs charges weekly interest rate, so they said that it is
easy to repay them on weekly basis.

Ans.4 Most of the Micro credit borrower uses there loan amount: Lifecycle Needs:
such as weddings, funerals, childbirth, education, homebuilding, widowhood, old
age. Personal Emergencies: such as sickness, injury, unemployment, theft,
harassment or death. Investment Opportunities: expanding a business, buying land
or equipment, improving housing, securing a job (which often requires paying a
large bribe), etc. When I got this type of reply I thought that the villagers and poor
people can also manage the funds as compared to an urban people.
Ans.5 Interviewer answered, that apart from loan amount MFIs helped them many
ways like: health facility, student education, teach them, help them in their
business, take care of their cattle health, sanitation etc
. Ans.6 When I asked this question, 22 people were voted for MFIs and remaining 3
for local Zamidars. I further asked to that 3 person that why they opted for
Zamidars. They replied that there terms and conditions are much flexible compared
to MFIs i.e. they can give interest on any date. That is after 1 month, 2 month like
that, there is not any uniformity in repayment. Other answer that I got from them
that because of the good relation with the Zamidars they preferred to borrow from
them. And the Zamidars charges low rate of interest compared to MFIs. But many
borrowers opted for MFIs because of less rigorous repayment terms and method.
Many additional benefits are given like education, health advice etc. to the
borrowers apart from loan amount.
Ans. 7 There are some cases of violation on the borrowers for not repayment of the
interest and loan amount. One incident discussed with me by the villagers that,
there was woman, her name was Sukhi Devi . She took loan of Rs.10,000 from one
of the MFI on a condition of repay 20% annually, but she defaulted and was not able
to repay. Actually that loan amount was taken by her husband, and he died. So she
was not able to repay. And the MFI adopted forceful way to regain their loan
amount, and they forced her so much that after sometime she committed suicide.
So according to them (end users) there was only one case where MFI used this
forceful way to regain their amount.