Industry internship project

2015 17 batch

Title of the project: microfinance and

allocation of micro-credit

Submitted by:
Name of the student: Mohit Katole
Roll no.
: pgdm151701486
Program : PGDM- finance
Batch
: F-3
Name of the faculty guide : Prof. Sharad jh
Name of the company
: World Wide Security
Organization
Name of the company guide
Company guide designation

: Mr. Bhushan bonde

:

Institute for technology and

management
Plot no. 25/26, Institutional Area,
Sector 4, Kharghar, Navi Mumbai

Acknowledgement
I am using this opportunity to express my gratitude to
everyone who supported me throughout the course of this
project. I am thankful for their aspiring guidance, invaluably
constructive criticism and friendly advice during the project
work. I am sincerely grateful to them for sharing their truthful
and illuminating views on a number of issues related to the
project.
I express my warm thanks to Prof. Sharad jha his
support and guidance at world wide security organisation.
I would also like to thank my project external guide Mr.
Bhushan bonde from the world wide security organisation
company and the people who provided me with the facilities
being required and conductive conditions for my MBA project.
Thank you
Mohit katole
(pgdm151701486)
m.katole@itm.edu

Table of contents

Executive summary
The main objective of the internship program is to fill the
gap between theoretical knowledge and practical experience.
This report is the outcome of five month long internship
program that i had successfully completed in world wide
security organisation (WWSO) ltd under several from 12th April,
2016 to 25th August, 2016. My participation allowed me to bring
comprehensive and practical exposure to the field of
microcredit activities under loan operation department of
WWSO.
To realise this it aimed at giving out credits in the form of
loans with relatively low interest to individuals and groups most
especially the women to set up small businesses and projects,
with the ultimate goal of alleviating poverty and improving
household income and consumption. Since its creation, WWSO
has above 30 branches and four regional offices around the
country, with the national head office in Bhopal, Madhya
Pradesh. Work in close collaboration with two financial
institutions i.e. NABARD and RBI
WWSO is headed by a director at the head office in
Bhopal, and the 30 other branches are headed by managers.
There are also occasional experts that WWSO brings into
different offices to boost up the knowledge of its employees, or
to provide specialised knowledge in areas where they are not
competent.
During my internship period, I was engaged in different
responsibilities in the various departments of WWSO ltd. The
organisation commences its operation form micro credit
operation department where they scrutinize the loan proposal
and appraise the proposed investment sectors or their
borrowers from various aspects, organization and management,
technological, marketing, and economic and profitability
indicators. Financial soundness of all mfi depends on the
performance of its disbursed micro-credit on various sectors. It
is closely associated with timely and steady repayment of

interest and principal of a loan. A loan is said to be well

performed when its repayment is duly made. The interest rate
at which WWSO provide micro-credit is 13.6% and to group of
women called Mahila Sanghatan the interest rate is 9%.

Introduction
Todays business world is so dynamic and competitive that
organizations are always looking for talented, skilful and adroit
graduates who belong to high degree of adaptability and
thinking quality. These business graduates will be the core part
of business organization someday. So business graduates need
to have both theoretical & practical knowledge to manage the
business activity properly. In order to be familiar with a MFI
culture and to gain some practical knowledge about it, one
needs to work in those departments. As a micro-financial
institution, world wide security organisation (WWSO) primarily
remains committed to provide micro-credit to the people under
the rules and regulations of the RBI and NABARD.
Microfinance refers to an array of financial services,
including loans, savings and insurance, available to poor
entrepreneurs and small business owners who have no
collateral and wouldn't otherwise qualify for a standard bank
loan. Most often, microloans are given to those living in stilldeveloping countries who are working in a variety of different
trades, including carpentry, fishing and transportation.
The aim of microfinance is to build financial sectors that
are closely interconnected with the local economy thus
facilitating lending to micro and small entrepreneurs, enabling
payment systems to be established and, in particular, creating
new savings opportunities for private households. This
approach which is efficient in many respects enables capital
to be put to productive use in the local economy. In other
words, the microfinance business contributes to the
quantitative growth of other sectors of the economy, such as
small-scale industry, construction and trade. This is accompanied by a process of ongoing formalization, i.e. the numerous
steps that a provider undergoes as it makes the transition from
the shadow economy to becoming a tax-paying enterprise with
contractual commitments, as is the norm in developed
countries. Consequently, financial sector development provides

small enterprises and households with market access leading

to their inclusion in the regional and ultimately the global
economy.
The growth of the financial sector is underpinned by
companies that provide a range of financial services. If we
consider the number of end-consumers that exist, it is clear
that the strongest growth potential is to be found in the lowerincome segment the microfinance segment. The providers
that are active in this segment are known as microfinance
institutions or MFIs. However, this generic term now
encompasses thousands of providers with different legal
statuses that are at varying stages of operational development.

Future of microfinance?

The microfinance sector is changing fast: the supply continues

to grow with $81.5 billion in loans worldwide and a 5% growth
in the number of customers in 2012. Services, actors,
regulation and technologic innovations are changing for
microfinance tomorrow remains an alternative to banking
services for more than 2.5 billion people still excluded from the
traditional banking system globally. The banking sector, the
increasing role of new actors, the expansion of services offered
to clients, but also the importance of control in a maturing
industry will be the big topics of microfinance in the next
decade.

Financial inclusion in 10 years?

The sector of inclusive finance will continue to expand
beyond traditional microfinance institutions. New actors such as
mobile operators and distribution networks will increase the
offers of financial services and products at lower cost to reach
the poorest and most isolated populations.
The online banks and the new technologies will also market
these large scale offers. The regulations will be more focused
on client protection than institutions, processes or products.
The financial inclusion will become a reality in most regions
that are currently excluded, with the exception of a few very
isolated locations.

Structural changes expected

Technological advances will cause major structural changes in
the sector.
Digital finance and mobile banking allow already a larger
number of people to access financial services and products.
Thanks to technological innovations, not only the contribution
of financial services is more diversified - offering credit,
insurance and savings products - but this new low-cost
payment infrastructure also gives other services and public
facilities more accessible to the poor, such as water pumps or
sunlamps.

This type of innovation will rise with the spread of mobile

banking services in the developing countries.
Niche actors, such as small financial institutions and agent
network managers, will emerge and try to get a place among
the big banks and small customers.
Simple and easily marketable products will be needed because
the banks will not be able to train their agents, scattered
throughout the country, with specificities of complex products.
How to increase the impact of microfinance in poor areas?
Better understand the needs of the poor and study their
preferences, their financial behaviour.
Translate this knowledge into products that are better
adapted to their individual needs and affordable. It is also
necessary to ensure that the services available to the poor
enable them to improve their living conditions.
Promote the protection of clients in institutions through a
combination of insurance, savings, retirement products
and develop commitment to customers to develop
financial education.
The changes in the sector of microfinance will be carried by
newcomers and organizations specifically targeting customers
outside the microenterprise segment.
The arrival of these new actors will undoubtedly provide a
broader and more diverse customer base, including the poor
but also the less fortunate who are still financially excluded.
These organizations work with tighter margins than most mfi,
but should be able to manage it thanks to higher volumes.

Task assigned

Expand and increase exposure of microfinance programs

to outlying villages.
Offer marketing, distribution and pwwsoing to local
microenterprises.
Learn about microfinance operation processes,
opportunities and its impact;
Go on project field visits and meet microfinance
beneficiaries
Assist on ongoing projects, help in report writing,
documentation, and other administrative work of the
organisation.
Develop policies, operational manuals and interact directly
with women groups in field level;
Initiate and maintain of self-help groups that offer financial
guidance and credit, promote savings, free members from
unfair debt burdens, and create collective action opportunities
that minimize exploitation of women and other marginalized
groups.

Objectives of the project

Be familiar with the process of finding loan recipients and

delivering a microfinance pitch;
Be knowledgeable about the benefits and controversies of
microfinance in modern economies;
Have a general understanding of measuring the effects
and value of individual microloans to businesses; and
Be acquainted with the WWSO micro financing
Acquire communication and presentation skills to explain
the project to local businesses and identify candidates
Learn how to utilize economics, business and finance skills
to promote small-business success
Learn about effective teamwork
Learn how to implement analytical problem-solving skills
in complex environments

website that is used to fulfil the microloans and its

corresponding application process, with emphasis in public
profile creativity

Organisation details
WWSO is a leading figure in the area of private

security and allied services in India. It was set up in

1994 and has since strived towards providing quality
and reliable security. It has redefined itself continuously
to stay ahead of the ever in flux security scenario.
Driven by integrity, quality control and innovation, we
at WWSO are committed to keeping you and yours' safe.
WWSO was started in February, 1994 under the
leadership of Capt V.P.Singh. Since then, the company
has grown in leaps to reach where it is today. In 17
years, the company has evolved and with the help of a
very powerful management, it has reached out to all
sectors of the society and industry to provide effective
security solutions and protection. World-wide has
ventured to provide the ultimate security solutions to
its clients through proper training, relationship
management, innovation and quality commitment.
It started out in 1994 solely as a company
providing manpower services. Gradually the company
has grown and has now branched out into various
subsidiaries dealing in outsourcing services,
housekeeping services and vocational training.

Their ethos
Vision
To provide a holistic and seamless experience of
integrated security & facility management services to our
clients in keeping with world-class standards and ever-evolving
best practices

Quality policy
We are committed to providing accountable, reliable,
efficient and effective security solutions through continuous
skill enhancement, expansion of product portfolio, welfare of
employees and unquestionable integrity and commitment.
WWSO has above 30 branches and four regional offices around
the country, with the national head office in Bhopal, Madhya
Pradesh. Work in close collaboration with two financial
institutions i.e. NABARD and RBI

The CEO
In 1994, private security as a business was at a primitive stage.
At that time, Capt V.P.Ssingh ( Retd ) decided to penetrate
this field and thus, world-wide securities was born.

Capt. V.P.Singh, with his leadership ability and innovative sense

of direction, has been able to put world-wide on the country's
map as one of the leading private security providers. He has
braved many challenges or difficulties that may have come his
way to make world-wide security organisation such a
respectable name in the private security industry today. Capt
Singh insists that this company is more like a family, where the
need of every personnel, junior or senior is well taken care of
through various welfare measures.
He always puts the needs of his clients before anything else. He
always says that a company needs to "stop selling what you
have, start selling what clients need". At present, he is the
state president (mp) of capsi. His dream is to become a leader
in the private security in India and extend the company's
footprint in entire Asia.

Before world-wide

Capt. V.P Singh hails from Bihar and is an ex-army officer.

He joined the Indian armed force in 1980 and served his
country for 9 years before deciding to test his entrepreneurial
ability. He shifted to Bhopal and worked at Indian institute of
forest management (iifma) as asst. Admin officer for a brief
period before starting World wide securitas in 1994, being its
owner and its employee. Currently he is chairman of m.p
chapter of central association of private security industry (capsi
- www.capsi.in). He has never looked back, leading his company
to great strengths to make it the leading private security
provider in the whole of madhya pradesh.
at world-wide
since feb 1994, capt singh has pooled in his administrative
skills and his defence background to successfully create an
entity which has provided sufficient and top notch integrated
security solutions to all its customers

Products of wwso
Other than providing micro credit to the customer wwso
provides many other services which are as follows:

Facility management
Wwso facilties was set up to take care of the changing
housekeeping landscape, with clients wanting better solutions
to their institutional cleaning needs. Their personnel are trained
on the following aspects:
1. Proper cleaning of office.
2. Use of correct equipment.
3. Soft skills for proper interaction with client.
They stress on the use of eco friendly products so as to
maintain the quality of the flooring and the furniture. Their
personnel follow all sops created by their top management so
that least inconvenience is felt, especially in the industrial
buildings. They also provide faade cleaning for high rise
buildings to keep it free of all pollutants.

Private secutity
Manned guarding services
World-wide security organization is transforming into a major
manned guarding service provider. With its own training
academies in three states and a service network in ten states,
the company is able to give employment to over 6000 security
personnel in various sectors.
The companys usp lies in its abilities to take on the toughest
projects and turn it around though its effective monitoring and
deployment mechanism which assists its clients in striving
forward in growth. Whether its an office building in the centre
of a city or a heavy industry, far away from civilization, the
security personnel are deployed with the sole agenda of
securing the clients assets in the most effective manner
possible.
Vasudha facility solutions pvt. Ltd., a sister concern of
world- wide has garnered many awards for its focus on quality
while training the guards. The quality council of india gave the
firm, its top award, the d.l. Shah award for services in 2014
for its innovation in training.

Electronic security solution

Wwso provide electronic security solutions through our firm
champions integrated facility management pvt. Ltd which was
created with the intent of creating core solutions for our clients
in this vertical. Cifmpl works closely with its partners to provide
the best range of e-security solutions to all their customers. It
gives end to end solutions by assessing, analyzing and
designing the best security system management which is also
cost effective.

Mobile security
In todays time, companies, banks and other institutions are
finding it extremely tough to budget for the cost related to
physical security. To cater to this problem, they recently
introduced the concept of mobile security operations. Under
this, they remove all personnel from the clients site and
instead, bank on their supervisors and gunmen to make regular
checks of all posts of their client 24x7. The supervisors are ably
supported by their cms team which is constantly monitoring the
site via cctv cameras. Their mobile team is tracked via a live
feed at their access control room in each city and the
movement is monitored so that no post goes unchecked for a
long duration. This is a very cost-effective way of securing the
premises.

Cash management services

Wwso secure-cash is the fastest growing vertical of the wwso

group and is a leading player in central india in the cash
logistics segment. Having started operations a few years back,
the vertical offers a complete range of secured cash transport
and has grown at more than 1000% in the last year and
currently, they have over 100 vehicles ferrying money and
money instruments for financial institutions and retail chains
that are our primary client base.
With a young fleet and adequate safeguards in place, they are
able to reduce a lot of the risk associated with money transport.
WWSO secure-cash works with the following mindset

To provide utmost security to the clients assets

To provide honest workmen with the vehicle
1. To act as a pillar of strength for its client
2. To provide quality services to its client

Cash-in-transit services
Providing the youngest fleet for the cash-in-transit model, wwso
secure-cash helps its clients in securely transporting all kind of
money instruments that include bank notes, coins, documents
and other valuable items to varied locations. We ferry cash and
other items intra-city, inter-city, inter-districts as well as interstate depending on the requirements of their clients.
Their vehicles come with some standard and optional fitments

Standard fitments
Vehicle fabrication as per international standards and iba
norms
Alarm system
GPS system
Fire safety
Remote locking mechanism

Optional fitments
Cctv cameras inside and outside the vehicle
Air-conditioning system

Stafing services
blue collar manned power services

Staffing solutions is a never ending task of fulfilling job roles

and requirements set forth by any client. Wwso, through its
staffing vertical, ephemeral staffing prides in having
successfully executed various job role requirements at the blue

collar level in the sectors like, tailoring, manufacturing, services

etc.
These are some strong points that set them apart from other
firms in this sector.
1. They have extensive branch network in over 300
distwwsots of india. This means that they can provide
unskilled manpower from non local areas to assist the
client if so needed.
2. They are a 100% compliant firm and provide complete
transparency in their operations.
3. They provide junior manager at client site at their cost for
a more efficient handling of compliances if the number of
personnel deployed in more than 100.
4. They are able to provide apprentices for factories from
their own itis in Madhya Pradesh.
5. They are able to provide skilled manpower at same cost
with the help of their efficient hiring system which is in
place.

white collar manned power services

Staffing solutions is a never ending task of fulfilling job roles
and requirements set forth by any client. WWSO, through its
staffing vertical, ephemeral staffing prides in having
successfully executed various job role requirements at the
white collar level in the sectors like, tailoring, manufacturing,
services etc.
These are some strong points that set us apart from other firms
in this sector.
1. They have extensive branch network in over 300 districts
of India. This means that we can provide unskilled
manpower from non local areas to assist the client if so
needed.
2. They are a 100% compliant firm and provide complete
transparency in our operations.
3. They provide junior manager at client site at our cost for a
more efficient handling of compliances if the number of
personnel deployed in more than 100.
4. They are able to provide apprentices for factories from our
own itis in Madhya Pradesh.
5. They are able to provide skilled manpower at same cost
with the help of our efficient hiring system which is in
place.

Organisation process
Decision making is a daily activity for any human being.
There is no exception about that. When it comes to business
organizations, decision making is a habit and a process as well.
Effective and successful decisions make profit to the company
and unsuccessful ones make losses. Therefore, corporate
decision making process is the most critical process in any
organization.
In the decision making process, we choose one course of
action from a few possible alternatives. In the process of
decision making, we may use many tools, techniques and
perceptions. Usually, decision making is hard. Majority of
corporate decisions involve some level of dissatisfaction or
conflict with another party. Decision making process which is
followed by wwso is shown below as flow chart
IDENTIFICATON
OFPURPOSE/PROBLEMS
INFORMATION GATHERING

FINDING THE ALTERNATIVES

ANALYSE THE DIFFERENT

CHOICES

EVALUATION OF ALTERNATIVES

SELECT THE BEST

ALTERNATIVE
EXECUTE THE DECISION

EVALUATE THE RESULT

Loan process
To minimize the impact on the organization, WWSO are
committed to remain flexible and able to adapt their processes
to suit the clients. Following is the process followed by WWSO
for providing the loans to the client

LOAN APPLICATION

APPLICATION EVALUATION

LOAN APPROVAL

DISBURSAL AND LOAN

POSTING

FUNDING

FUND TRANSFER

REPAYMENT

Organisation structure
CEO
And
Strategic Business
Unit

Swot analysis of WWSO:

A swot analysis gives a perfect picture of a organisation
performance which is as follows:
Strengths of WWSO:
WWSO is unique in its nature having both specialized and
commercial operation it is regarded as a development bank
as well as commercial one.
OPERATIONS
FINANCE
MANAGER
INTERNAL
AUDITOR
WWSO has skilled financial
management,
good credit
control
MANAGER
and few bad debts.
A strong balance sheet. Access to extensive credit, a strong
credit rating,
relationship
bank AUDITOR
and
ACCOUNT
MANAGER with the
ASSISTANT
AREA
MISand a good
other sources
of finance.
MANAGER
MANAGER
Skilled employees, successful recruitment, and effective
training and development.
BRANCH
Govt. Support and encouragement.
ACCOUNTANT
SUPERVISO
One of the fundamental objectives of WWSO is to boost up
R
small medium industries.
FEILD
FACILITATO
Weaknesses
R

of WWSO:

Decision making process is lengthy.

Lack of promotional activities.
Less diversified product and services line. The salary of
WWSO is not high enough related with other commercial
bank operating in India.
Man/internet/online services in WWSO is not upgraded, many
of their works through manually.

Opportunities of WWSO:
There are huge demand of micro-credit, small and medium
scale finance.
There are opportunities of innovation in the banking industry.
India economy is expanding rapidly, so the need of bank is
growing up.

Threats of WWSO:
.

Due to government institution many of the banking decision

basic by political government
Too much interrupted by national assistance institutions like
sbi, credila.

Task performed to meet the objective

Perfect research work requires accordance with some rules and
methodologies which is maintained in making this report. As a
result, the decision had been taken to collect various types of
primary data and secondary data.
The main technique used is:
Qualitative
In this research method i focused on specific situations in
various departments using research tools like individual
interviews, surveys, and direct observations. I used it to get an
understanding of underlying reasons, opinions, and motivations
of officers. It provided me insights into the problem and thus
helps me to develop ideas or hypotheses for potential
quantitative research.
In order to make the effective and efficient, primary and
secondary sources of data been used.
The primary data have been collected by oral interviewing
the responsible officers and staff of WWSO from mainly loan
operation department and others. Their practical deskwork,
direct observation of the functions of various departments of
WWSO and relevant documents made my insights in this
report accurate enough.
The secondary information comes from annual report of
WWSO, relevant papers/books, articles from web and
periodicals publication and manual of different departments.
In carrying out this research, i made use of some research
method techniques. One of the most important was participant
observation. This was important because the services of WWSO
deals directly with the clients, and in most cases i had to serve
clients at the counter, or during the field trips where we went
for
customers outreach service, property inspection for
collateral. Equally my office duties were an added experience. I
equally used qualitative research method. In this case i
conducted interviews. Those interviewed were MFI staff, clients,
economists, government officials, bankers, employees of
organizations and aspiring clients.

To carry out the interviews I used a tape recorder, but in

some instances I took down notes because some areas were
too noisy like when we got to the market for the outreach
customer service. As is always the case with interviews, some
people felt uncomfortable to speak with a tape recorder
because of the on-going operation sparrow hawk against
corruption. My interviews were done in English and Hindi. But in
all, my maximum interviews were mostly in English. I did not
get much information without difficulties, at times, there were
contradictory information from one MFI to the other, at other
times, and WWSO staff could not release some information to
me which they thought could be controversial to the public. In a
summary, my research plan was respected and i achieved and
acquired the data which I am now using for writing. To add up
to this, i used some empirical data from WWSO offices,
especially about the state of WWSO in Bhopal, WWSO formation
and cases of delinquency of clients. I am thankful, to WWSO for
the were of great assistance to me.
Theoretical framework
Within the spectrum of theories that have been studied in the
past two semesters, i settled on using empowerment theory to
apply in the case of credit allocation to people in Bhopal by
WWSO the choose of this theory could not have been deem
otherwise considering that, this theory addresses some
contemporary issues which affect women nowadays such as
power, control, awareness, community empowerments,
household consumption, poverty alleviation, self reliance and
sustainability. So i will use this theory to explain how credit is
allocated to women by WWSO, and will use it to explain how
the credit acquired helps to empower them.
Empowerment theory
The term empowerment refers to measures designed to
increase the degree of autonomy and self-determination in
people and in communities in order to enable them to represent
their interests in a responsible and self-determined way, acting
on their own authority. Empowerment as action refers both to
the process of self-empowerment and to professional support of
people, which enables them to overcome their sense of

powerlessness and lack of influence, and to recognize and

eventually to use their resources and chances.
The term empowerment originates from American community
psychology and is associated with the social scientist Julian
Rappaport (1981).
In social work, empowerment forms a practical approach of
resource-oriented intervention. In the field of citizenship
education and democratic education, empowerment is seen as
a tool to increase the responsibility of the citizen.
Empowerment is a key concept in the discourse on
promoting civic engagement. Empowerment as a concept,
which is characterized by a move away from a deficit-oriented
towards a more strength-oriented perception, can increasingly
be found in management concepts, as well as in the areas
of continuing education and self-help.
Theory application in the case
People in Bhopal have been subjected to different forms of
hardship, because of lack of credit to better their lives, but with
the presence of credit from WWSO some people have taken up
the challenge to acquire loans for businesses such as trading,
farming, and some have actually recorded great successes and
have been able to run businesses for many years, using their
ides. This indicate that poverty which is usually felt more by the
people in most societies can actually be slowed down if credit
can be allocated to the members of the community that play an
active role. WWSO for over the years have been giving out
small loans ranging from 5000 Rs to 50000 Rs to some people
and they have actually stopped being sole dependent on their
men for survival. Women have been able come up with ideas
that aims to involve other women folks in areas of Bhopal, as
groups, with the idea of forming collective projects which can
improves on their lives.
Since its creation, WWSO has sponsored many projects.
This is a group of women who cultivate vegetable which is a
delicacy in the region especially during the dry season for local
consumption. Their ideas have been to raise their resources
and invest to make profit. To realise a project like the vegetable
cultivation, women needed firstly loans to acquire seeds,
fertilizers, and a means of irrigation of water to their dry farms.

WWSO stood out as the provider of these facilities even though

a financial institution. As was explained in the introductory
chapter, WWSO runs a consultation department which offers
technical knowledge to farmers, and provide suppliers of the
material needed. This strategy by WWSO is empowerment of
the people through material loans. In this situation we realise
that loans were provided by WWSO to these group of women to
acquire technical knowledge supplied to set up their business.
However, in this study, using the two cases of women
groups, the theory limits us to some extent. Firstly, because
WWSO is an MFI with profitseeking agenda, and cannot
empower women and at the same time seek interest from the
loans it provides to them. This was one major problem i got
from women about WWSO. I was made to understand that
loans either in cash forms were placed on an interest of 14%
and at 9% to the Mahila Sanghatan (group of women
registered by govt.), it was difficult to realise cost, make profit
and repay loans. So as a result most loans were never paid in
time and interest kept on accumulating.

Analyses
After I had carried out interviews and through
observations while working as an intern with WWSO, Bhopal, i
realised that micro credit actually was not a cheap source of
finance for poor people who are incapable of making their own
lives. For example WWSO gave out loans to small business
people of various amounts. But these loans sometimes were
used for other purposes. For example, I met one woman who
had contracted a loan from WWSO to run groundnut business,
but she lost her husband just when she acquired this loan, and
the money was rather used for burial, rendering her indebted
and incapable to lift her out of her current situation.
Looking at allocation of credit to people, we will realise that the
amounts of money needed sometimes to bring about change in
the lives of women needs to be a reasonable sum, and for
these poor women to have such loans allocated to them, they
need some form of collateral, such as a house or land, which
most women do not own, thus bias sets in when allocating
credits. Women with securities will have large credits while the
poorest will not be able. Thus WWSO, policy of granting loans
still has a lot to do if its credit can actually help transform the
lives of the women as empowerment theory envisages. In a
nutshell, it was noticed in the course of my research that credit

allocation in WWSO was tied down by bureaucratic practices

that could actually makes its ability to help the people doubtful

Conclusion
In the above presentation we tried to explain how people in
Bhopal in Madhya Pradesh through projects in which they
acquired micro credit from WWSO carried out their projects,
and the limitations which credits have upon them. We outlined
that micro credit could actually be a good means of lifting poor
people out of poverty, but they are restricted by the conditions
of loans. Though this is a limitation, it is not to say that credit
acquired from WWSO cannot produce better success stories.
WWSO has been limited also by the behaviour of clients to
repay, either because their projects were not well thought of, or
because of unforeseen situations.

Limitations of the study

In performing this report my lack of proper practical knowledge
greatly influenced in this performance. Beside this, some
limitations in performing this study and preparing this report
have been faced. The main limitations are as follows:
Lack of available up-to-date information.
Sometime unacceptable feasibility reports are submitted by
sponsors which do not contain enough and dependable
information.
The employees of WWSO had no eagerness to supply more
information because of extra confidentiality.
Too little concentration is given to examine risk and
uncertainties related with the projects means only sensitivity
analysis is done to analyze risk.
Some suffer that lack of an up-to-date project appraisal
booklet.
Lack of sufficient, updated and precise information in the
country. Both primary and secondary data are not readily
obtainable.
Loan sanction process is not always free from political
pressure.
Sponsors always tend to overstate their future cash flow,
revenue and income and understate the risk with capturing
market and expenses.

 Sometimes the amount of loan sanction is more than that is

required by the project because of over invoicing from the
part of sponsors.
Many projects are sanctioned loan due to influence of
political and pressure group.
Lengthy procedure and long time involved in the appraisal of
project.
Inadequate to social cost and benefits.
Another threaten is the technology, the bank must be
adjusted with new technologies and information, otherwise
the profitability of the bank may hamper.
Now WWSO is losing concern, the financial statement
represents tk260 corer as loses during last year.
There is a complex judiciary system.
No eagerness to devote themselves for bank because of
lower benefits is given to employees
Irregular physical verification.
Amortization facilities are not sound.
Lack of co-ordination among the various departments and
divisions.
Inappropriate feasibility study from the managers.
No system of accountability of the appraisal. As a result
the approved projects fail to be productive.
Lack of support from government monitoring body.
Loan sanction procedure is not up to date, effective and
quick.
Lack of incentives to employees.
Lack of financial commitment on the part of the borrower.
Lack of skilled and sufficient manpower.
In case of sanctioning loan, sometimes the procedures of
sanctioning are not followed.

Recommendation
My recommendations will be that, if micro-credit has to help
empower the women, then both the financial institution such as
WWSO and the women seeking credit must come out with joint
ideas that can be sustainable and profitable to bring about
change. Also, WWSO could use the services of development
expert together with financial experts to identify which project
will be good for which category of women and at what time. In
all, working with WWSO, Bhopal was exciting experience, and I
learned a lot from them.