Social Impact Assessment: Muthoot Fincorp

Submitted to:
Muthoot Fincorp, Kochi
Muthoot Chambers’ City Branch,
Opp: Saritha Theatre, Banerji Road, Kochi

Submitted by:
INTELLECASH Microfinance Network Company Pvt. Ltd.
#11 F, Gopala Tower, Rajendra Place, New Delhi – 110008, INDIA
Tel: +91-11-47093361, 45558027, 28, 29 Fax: +91-11-45558026
Website: www.intellecash.com
Mumbai ∙ New Delhi ∙ Hyderabad ∙ Patna

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 Table of Contents
1. Introduction to Muthoot Mahila Mitra ………………………………………………………………………… 5
1.1. Background …………………………………………………………………………………………………………… 5
1.2. Muthoot presence ………………………………………………………………………………………………… 5
1.3. Operational Methodology ……………………………………………………………………………………. 5
1.4. Outreach ……………………………………………………………………………………………………………… 6
2. Introduction to Sthreejyothi training programme ……………………………………………………… 6
2.1. Background …………………………………………………………………………………………………………. 6
2.2. Geographical spread and outreach ……………………………………………………………………… 7
2.3. Methodology ……………………………………………………………………………………………………… 8
3. Background of the impact assessment study ……………………………………………………………… 8
3.1 Objectives of the impact assessment study …………………………………………………………. 9
4. Study phases ……………………………………………………………………………………………………………… 9
4.1. Phase I ………………………………………………………………………………………………………………… 10
4.2. Phase II ………………………………………………………………………………….……………………………… 10
5. Study Design ………………………………………………………………………………………………………………… 10
5.1. Study time frame …………………………………………………………………………………………………… 10
5.2. Research tool ………………………………………………………………………………………………………… 11
5.3. Sampling method: Stratified random sampling ……………………………………………………… 11
5.4. Research questions ………………………………………………………………………………………………… 12
5.5. Sampling design ……………………………………………………………………………………………………… 12
5.6. Data analysis …………………………………………………………………………………………………………… 13
6. Findings and Analysis ……………………………………………………………………………………………………… 13
7. Respondent profile ………………………………………………………………………………………………………… 13
7.1 Age …………………………………………………………………………………………………………………………… 13
7.2 Housing status ………………………………………………………………………………………………………….. 14
7.3 Social status ……………………………………………………………………………………………………………… 14
7.4 Poverty status …………………………………………………………………………………………………………… 15
7.5 Occupation status …………………………………………………………………………………………………….. 15
8. Impact Analysis ……………………………………………………………………………………………………………… 16
8.1 Impact Heterogeneity ………………………………………………………………………………………………. 17
8.2 Insurance coverage (Life, health & vaccination) ……………………………………………………… 17
8.2.1 Life and health insurance coverage …………………………………………………………………. 17
8.3 Member children’s vaccination status ……………………………………………………………………. 18
8.4. Savings trend ……………………………………………………………………………………………………………. 20
9. Participation in community organization trained versus non-trained ………………………… 22
9.1. Differing patterns of change in leadership ………………………………………………………………… 23
9.2. Decision making ability ………………………………………………………………………………………………. 25
10. Impact of income generating loan on business / enterprises ………………………………………… 27
10.1 Impact of IGL on business ……………………………………………………………………………………………. 27
10.2 Self-perception …………………………………………………………………………………………………………… 28
11. ‘Swarnavarsham’ loan ………………………………………………………………………………………………………….. 29
11.1. Rating Swarnavarsham loan ………………………………………………………………………………………… 29
11.2. Utilization of gold coin offered in Swarnavarsham loan ……………………………………………… 30
11.3. Swarnavarsham loan a key attraction? ……………………………………………………………………….. 30
12. Feedback on the services ……………………………………………………………………………………………………... 32
12.1. Client suggestions on Muthoot MMM programme …………………………………………………… 32
12.2. Feedback from non-trained clients …………………………………………………………………………….. 33
12.3. Feedback from Other stakeholders…………………………………………………………………………….. 33
13. Conclusions ………………………………………………………………………………………………………………………….. 34
14. Recommendations ………………………………………………………………………………………………………………. 35

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Annexures

Annexure 1 – Impact Assessment Study – Muthoot Mahila Mitra – Client Questionnaire

Annexure 2 - Impact Assessment Study – Muthoot Mahila Mithra - Stakeholders

List of Tables
Table 1: MMM Clients trained

Table 2: Study phases

Table 3: Phase I survey sampling

Table 4: Phase II survey sampling

Table 5: Profile of the clients covered in sample

Table 6: Change in family level income after MMM programme

Table 7: Life and health insurance coverage

Table 8: Member children’s Vaccination status

Table 9: Saving habits

Table 10: Community level participation

Table 11: Differing patterns of change in leadership

Table 12: Members self-perception

Table 13: Impact of IGL on business

Table 14: Client’s feedback and suggestion

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List of Graphs
Graph 1: Insurance Coverage

Graph 2: Member children’s e vaccination status.

Graph 3: Saving habits

Graph 4: Community level participation

Graph 5: Leadership skill

Graph 6: Decision making ability for trained clients

Graph 7: Decision making ability after MMM intervention – Trained

Graph 8: Decision making ability before MMM intervention –Non-trained

Graph 9: Decision making ability after MMM intervention –Non-trained

Graph 10: Decision making and perception trend of trained and Non-trained clients

Graph 11: Community level participation

Graph 12: Leadership skill

Graph 13: Respondent’s decision making ability-Trained

Graph 14: Respondent’s decision making ability-un Trained

Graph 15: Impact of IGL on business / enterprises

Graph 16: Members Self perception

Graph 17: Rating Swarnavarsham loan

Graph 18: Buying / utilizing gold coins

Graph 19: Swarnavarsham loan a key attraction

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 1. Introduction to Muthoot Mahila Mitra

1.1 Background

Muthoot Fincorp Limited, a subsidiary of Muthoot Pappachan Group (MPG) is a finance company catering to the
financial needs of retail and institutional customers. It is registered with the Reserve Bank of India as a non-
deposit taking non-banking finance company (NBFC).

Muthoot Fincorp Limited focuses on providing an array of financial services through their network of 2,300
branches across India. It has a diverse mix of retail offerings in the areas of consumer loan products. “The
services comprise of a mix of retail offerings in the areas of gold loan & other loan products including Investment
products, Insurance & Advisory Services.”

Muthoot Fincorp designed Muthoot Mahila Mitra (MMM) Programme in April 2010 with special emphasis for
providing microfinance services to women entrepreneurs. It caters to the financial needs of unbanked. Under
MMM programme, Muthoot Fincorp offers loans to economically active women for any declared legal end use,
like business expansion, working capital needs, purchasing raw material, purchasing animals, marriage,
education and debt consolidation.

The lending norms of MMM are based on the profile of the members, their cash flows, income stability,
repayment capacity, business models and group guarantee. Emphasis is laid on understanding the borrowers’
weekly and monthly income, family income, household income, other expenses and the resultant installment
affordability.

1.2 Muthoot Presence

Muthoot is emerging as a leading player in the microfinance space, presently operating in Kerala, Karnataka and
Tamil Nadu. Muthoot Mahila Mitra (MMM) is present in 22 districts with 80 operational branches.

1.3 Operational Methodology

Muthoot Mahila Mitra follows Joint Liability Group (JLG) model of microfinance. Clients are organized in groups
of 5-10 women and each woman takes joint liability for the other members of the group. The clients have weekly
meetings where they pay back the loan installments and discuss other challenges or concerns regarding
members or MMM’s loan products and services.

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 1.4 Outreach

Muthoot Mahila Mitra has reached 2.95 lakh borrowers as on March 31st, 2012 with 100% women clients. The
portfolio outstanding as on March 31st, 2012 was INR 179 Crore with a repayment rate of 99.80%.

2. Introduction to Sthreejyothi Training Programme

2.1 Background

In Collaboration with ACCION1 International, Muthoot Fincorp provides financial literacy and entrepreneurship
development trainings to select MMM clients. Under this programme, women clients are trained on business
acumen and entrepreneurship aspects. This is initiated by the Muthoot Pappachan Group (MPG) under its
Corporate Social Responsibility in partnership with ACCION Dialogue on Business. This is one of the unique
features of the Muthoot microfinance initiative. The programme is branded as “Sthreejyoti”, and was started in
Kerala, Karnataka and Tamil Nadu. Sthreejyothi training programme uses interactive games and role-plays to
solve real life business challenges. The workshops are participatory and reality based, rather than text book
cases, thus it helps people with lower formal education to learn effectively and apply that learning in their
business activities.

The training modules offered are as follows:

 Self-Management for women

 Communication and promotion of business
 Leadership skills
 Feasibility of client’s business
 The Entrepreneur and The Management
 Savings and Investment
 Idea to business
 Cash Management
 Debt Management

Muthoot and ACCION signed an agreement in March 2010 to design, develop, and deliver Sthreejyothi
Programme for a 3 year period. Under this partnership, the role of ACCION is to provide all the training
modules, train the Muthoot team, and also monitor the programme.

1
ACCION International is a microfinance and micro lending organization, giving people the financial tools they need to
work their way out of poverty. www.accion.org

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Participants, after successfully completing the programme, are also certified by the Sthreejyothi team and get
benefits like market linkages and product branding. Sthreejyothi has trained nearly 5,000 women in its first year
of operations and scaled it to 16,000 during the second year. ACCION continues to monitor the members
businesses to ensure success. Along with ACCION’s inputs, Muthoot has also collaborated with many other local
NGOs to organize workshops on soap making, candle making, fabric whitener, phenyl manufacturing, paper bag
making etc. at various centers.

As part of this programme, Muthoot has also collaborated with NABARD2 and other Non-Government
Organizations to deliver the programme and utilize their expertise for forward and backward linkages.

2.2 Geographical spread and outreach

2
National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India

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 Table 1: MMM Clients trained
State Mar 11 Mar 12
Kerala 2587 8563
Karnataka 1185 3051

Tamil Nadu 1220 4682

Total 4992 16296

As of March 2012, a total of 16,296 members have been trained from three different states under Sthreejyothi
programme. This makes around 5% of the total MMM clients to be trained clients.

2.3 Methodology

MMM has gone beyond regular lending, training and has been trying to enable entrepreneurs to either learn or
enhance various skills. Sthreejyothi training programme has trained more than 16000 women entrepreneurs
across three states in South India namely Kerala, Karnataka and Tamilnadu. ACCION’s highly competent and
skilled facilitators act as “Coach” to entrepreneurs. It begins with business counseling followed by customization
of programme which leads to a unique learning experience. The women entrepreneurs with business acumen
are increasingly enrolling for the programme. The programme is not a classroom; it is participatory, fun-to-learn
and applies best practices in business mentoring, conducted by the Sthreejyothi facilitators.

3. Background of the impact assessment study

Muthoot Pappachan Group (MPG), as part of its corporate social responsibility programme, has initiated many
activities and integrated them in their operations. To understand the impact of these changes and also measure
changes in the quality of lives of its customers, over time, Muthoot engaged INTELLECASH3 Microfinance
Network Company (P) Limited to conduct a social impact study for the Muthoot Mahila Mitra programme.

Muthoot Fincorp’s microfinance operations are spread across three states namely Kerala, Tamil Nadu and
Karnataka covering around 295,000 women. Keeping in view the size of the universe and available resources,
Muthoot management felt that a sample size of 360 would be reasonable to get some insights on the impact.
Based on this discussion, INTELLECASH has selected a sample size of 360 covering both Sthreejyothi and Non-
Sthreejyothi members as part of the impact assessment study. The sample set covers all three southern states
and includes 15 districts. Further, it was decided that the sample should cover only 2nd cycle clients, so that
clients who spent reasonable time with Muthoot will be able to share their thoughts on the MMM programme.

3
INTELLECASH is a premier microfinance consulting company specialised in providing wide range of services.

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3.1 Objectives of the Impact Assessment study

 To understand the various activities carried out for Muthoot Mahila Mitra members.
 To measure the knowledge and skills of women group members before and after the intervention.
 To measure the impact of the interventions on the target client’s managerial abilities, and if it has
contributed to an improved quality of life.
 To understand other stakeholders’ view and perspective on the intervention.

4. Study Phases

Table 2: Study phases

Mar Mar Mar Mar Mar Apr Apr Apr Apr May May
Sl ‘12 ‘12 ‘12 ‘12 ‘12 '12 '12 '12 '12 '12 '12
Activities
No Week Week Week Week Week Week Week Week Week Week Week
1 2 3 4 5 1 2 3 4 1 2
Initial Assessment
1
and Tool Design
Field interview
(360 sample size
with 2 ICash and 4
2
MUTHOOT
FINCORP
resources)
Partner interview
(other stake
3 holders like
NABARD and
ACCION)
Data Compilation
4
and Analysis

Detailed Report
5
Preparation

Presentation of the
6
Report

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 4.1 Phase I

In the first phase of the study three resources from INTELLECASH were directly involved in the survey. They also
simultaneously trained the MMM team for the second phase of the study. During this phase total 91
questionnaires were administered.

Table 3: Phase I – survey sampling

State Survey conducted

Kerala 24
Karnataka 17
Tamil Nadu 50
Total 91

4.2 Phase II

MMM’s resources that were trained by INTELLECASH during the first phase carried out remaining part of the
survey and 269 forms were administered in the second phase of the survey.

Table 4: Phase II Survey sampling

State Survey conducted

Kerala 231
Karnataka 13
Tamil Nadu 25
Total 269

5. Study Design

5.1 Study Time frame

The field work/data collection was undertaken in the month of March and April of 2012.

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5.2 Research tool

Data collection tool: Keeping in mind the various stakeholders in the study, INTELLECASH used following data
collection tools.

a) Structured Interview/ Questionnaire schedule ( for clients)

b) Structured Questionnaire ( other stakeholders)
c) Secondary sources namely reports, new letters, case studies, brochures, pamphlets etc.
d) Focused Group Discussion (FGD).
The study combined the application of both quantitative and qualitative tools including questionnaire on
different indicators addressed to beneficiaries and other stakeholders. Qualitative information was collected
through Focus Group Discussions (FGDs), to understand the present situations of the members.

The Social impact assessment study includes the processes of analyzing and monitoring the intended and
unintended social consequences, both positive and negative, of planned interventions (policies, programme,
plans, projects) and any social change processes invoked by those interventions .The subject matter of the
impact is MMM and Sthreejyothi Programme in three states of India namely Kerala, Karnataka and Tamilnadu -
specifically to assess the extent to which these programmes have benefited the target group.

, The study has used client recall technique to measure members’ pre-intervention status.

5.3 Sampling Method: Stratified Random Sampling

The sample was divided into smaller group of trained and non-trained clients based on members'
shared attributes or characteristics like geography, present loan cycle etc. A random sample from each stratum
was taken in a number proportional to the stratum's size when compared to the population.

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 5.4 Research Questions

The key research questions addressed during the study include:

1. Sthreejyothi training programme benefits

2. MMM products and services

3. Change in business income

4. Change in savings, health, and insurance and food habits of the household

5. Change in self-perception, leadership skills etc.

5.5 Sampling Design

A multi-stage sampling design with cluster based sampling was used. Sample of 360 members were selected in
different geographical location, rural/urban presence, and trained & non-trained, on random basis. Under each
state, about 2-6 clusters with at least 30- clients, which included both trained and non-trained members per
cluster were selected, it was decided to cover 50% of sample from trained and 50% non-trained. The sample was
spread across the clusters (10 rural and 19 urban) in 41 districts of 3 states.

The survey was designed to cover the respondents, who have availed loan(s) from MMM and also Sthreejyothi
participants.

The traceable samples of trained members and non-trained members were interviewed through structured
questionnaires to seek information on the change in the household income, savings, meals, health facilities etc.

Table 5: Profile of the clients covered in sample

State Clients Trained clients Non-trained 1st cycle clients 2nd cycle clients
clients
Karnataka 30 22 8 19 11

Tamil Nadu 75 46 29 24 51

Kerala 255 200 55 61 194

Total 360 268 92 104 256

As planned, the sample clearly represents mostly trained and 2nd cycle clients. However, it was noticed that
around 20 members from the first cycle, who are not trained are also covered.

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5.6 Data Analysis

The quantitative data of sample households was analyzed to find out percentages, averages and frequencies for
various indicators. The results were analyzed and compared across trained v/s non-trained. Further, the
quantitative results were supplemented and validated by qualitative aspects like FGDs and field interactions
with clients.

6. Findings and Analysis

This section of the report discusses about the study findings and analyses each indicator in detail. Entire section
is broadly divided into two sub-sections; the first section describes the respondent profile in terms of Age,
social, housing and poverty status, while the second section of the report discusses the impact analysis,
namely family income, savings pattern, children’ education & vaccination and overall well-being of the family.

7 Respondent Profile

7.1 Age
Graph 1 : Respondent profile

Majority of the survey respondents are in the age group of 31-40 years. The average age is 36 years. It
is believed that this age group is the most productive in terms of working and contributing to
household economy.

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7.2 Housing Status
Graph 2: Respondents social status

The social profile of the respondents shows that majority are represented by Other Backward Caste
(OBC) social category followed by schedule caste around 25%. Hence, it is felt that Muthoot can review
its target segment in terms of social profile, in order to have a more diversified client base.

7.3 Social Status

Graph 3 : Respondents housing status

Around 77% of the Muthoot clients own a house. This may be considered quite well, as it ensures that
members are stable and reliable in terms of mobility, and may be considered less risky while lending.
Still, around 20% seem to be staying in a rented house; this is clearly an operation policy deviation.
Muthoot can review this policy and take necessary action.

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7.4 Poverty Status
Graph 4 : Respondents poverty status

Muthoot approach seems to be balanced in terms of client targeting with reference to their poverty
status. Around 55% of the clients are represented by below poverty category. During the field visit and
FGDs it was noticed that Muthoot is targeting economically active population.This confirms that
Muthoot is targeting to address economically active clients and not merely focusing on their poverty
status.However, keeping in view of the recent RBI guidelines on MFIs’, this should be considered a
major gap for Muthoot and should invite immediate policy review, especially if Muthoot wants to carry
out microfinance as an NBFC MFI.

7.5 Occupation Status

Graph 5 : Status on Members Occupation

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 The above tables show that around 85% of the respondents are involved in some kind of
business/enteprise. It is interesting to see that out of 306 members who are engaged in business,
around 57% of the member were running the business before they joined MMM programme while
around 28% of the repondents started running the Business/enterprise post joining MMM programme

8. Impact Analysis

Under this section of the report, the findings on each indicator are analysed in detail, they include both
qualitative and quantitative aspects of impact. The quantitative aspects include change in family income,
savings patterns and insurance coverage, whereas the qualitative aspects include decision making,
participation, leadership, and impact of IGL on enterprise.

Table 6 : Change in family level income after MMM programme

Family level income level after MMM Family Income Level

PROGRAMME – All members

Increased 81%

Decreased 0%

Constant 19%

Graph 6: Respondents family income levels

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 Of the total respondent around 81% reported that their income has increased after joining MMM programme.
This is a very significant achievement for Muthoot. This also confirms that Muthoot’s basic objective of
microfinance is fulfilled. It can also be inferred that the programme has been successful to a great extent.

The impact of the increase income could be seen across other indicators namely improved access to health,
education, insurance etc, which can be considered as the improved quality of life of MMM members.

8.1 Impact Heterogeneity

This section of the report describes the impact of the various MMM interventions on two different sample
groups.
 Trained members
 Non-trained members

It is to be noted that the non-trained members are also part of Muthoot Mahila Mitra programme and have
taken loan from MMM.

8.2 Insurance Coverage (life, health & vaccination)

8.2.1. Life and health Insurance coverage

Table 7: Life and health Insurance coverage

Not insured
Parameters Before MMM After MMM yet
Life Insured – Trained 135 31 102
Life Insured – Non-trained 31 10 51
Health Insured – Trained 74 37 157
Health Insured – Non-trained 22 13 57

Life Insurance: The analysis on the insurance coverage under life insurance indicates that before Joining MMM
programme many of the clients already accessed various kind of insurance.

However, there has been a positive impact of joining the MMM programme, nearly 11% of the clients have
taken insurance for the first time after joining the MMM programme. Further, it clearly shows that the impact is
more among trained (Sthreejyothi) members. Next level of analysis shows that, post joining MMM programme,
members who are trained using insurance are almost three times more than non-trained clients.

Similar trend is observed under Health insurance coverage.

However it’s interesting to observe that the scope for improvement is still very high, nearly 42% of the total
sample size are still not covered under insurance.

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 Graph 7: Insurance coverage (life & health)

Source: Survey Data

Conclusion:

 MMM could look at the option of creating special focus on Insurance education to its clients. The
Training program should have a module on the importance of life insurance.

8.3 Members’ children’ Vaccination status

Table 8: Members’ children’ Vaccination status

Not vaccinated
Parameters Before MMM After MMM yet NA
111
Vaccinated – Trained 99 23 35

Vaccinated – Non-trained 28 9 16 39

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 Graph 8: Vaccination Coverage

Source: Survey Data

Vaccination does not apply to approx. 50% of the respondents as their children are grown ups and does not
require vaccination. Out of the eligible client responses, it is observed that nearly 60% client children are
vaccinated before they joined the MMM programme.

Of the total 23 clients whose children are vaccinated post MMM enrollment makes up around 15%, which is
reasonable impact when compared among the trained Vs. non-trained members.

Conclusion:

 Sthreejyothi trained members are aware about the benefits of vaccination and thus get their
children vaccinated.

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8.4 Savings Trend
Graph 9: Respondents savings trend

Savings trend
Post office / bank Self-help group Private / chits Piggy bank / Home
187
168 174
141
127 127133
111
93 99 92
83 84
70

34
19 11 24 17
9
0 0 0 0

Rs.100 - Rs.500 Rs.100 - Rs.500 Rs.501 - Rs.1000 Rs.501 - Rs.1000 >Rs. 1000 >Rs. 1000
Before MMM After MMM Before MMM After MMM Before MMM After MMM
PROGRAM PROGRAM PROGRAM PROGRAM PROGRAM PROGRAM

The survey figures on savings habit of MMM programme clients reveal that most of them had increased their
savings amount post joining MMM programme. Members are using post office / bank as the most preferred
option to saving their amounts which is in the range of Rs.1000/- and above. The increase in this segment is
most significant after MMM programme. Savings amounts at Self Help Groups (SHG) also increased in the
range of Rs.500/- - Rs.1000/-. Savings at private chits has increased after the MMM programme for the amount
range Rs.100/- - Rs.500/-.

Conclusion:

 MMM intervention has shown a better impact on savings of the clients.

 The level of savings has increased and clients understood the importance of savings much more
than before.
 Members are looking for secured and good returns for their savings. There is a lot of scope for
Muthoot to introduce the products which help the members get good returns for their savings.

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 Table 9: Savings habits

Savings Habits Before MMM After MMM Not Saving

Trained members savings 103 106 59

money
Non-trained members 38 21 33
savings money
Graph 10: Saving habits

Source: Survey Data

It’s interesting to observe that around 35% of the members have either started savings or increased quantum of
savings, when compared to non-trained client; this clearly shows the impact of Sthreejyothi Training.

The graph clearly shows impact on savings after the Sthreejyothi training. The number of clients saving money
after Sthreejyothi training is 5 times more than the members who have not attended training. Training has a
positive impact here. However, there is still considerable scope to include other members who are not saving.

 Conclusion:

 Sthreejyothi training program showed good impact on increase in savings quantum

 After joining MMM and undergoing Sthreejyothi training program, clients’ ability to save money on
monthly basis has gone up.
 About 22% of clients are not able to save money even after receiving Sthreejyothi training because
of household problems which could be higher expenditure of the household, repayment of
previous debt etc.
 It has been noticed that after joining MMM clients very well understand benefits of savings and
inclined to save money on monthly basis.
 Some clients save money and then invest that in mutual fund or gold investments. Muthoot can
track these clients and can offer wide range of products.
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 Box 1: Advantages of MMM loan

 It is available at the doorstep

 Get gold coin as savings/investment
 Involves less paper work
 Accessible to the poor
 No corruption involved
 No involvement of middlemen
The groups expressed that:
 The loans from MMM were far better and cheaper than borrowing from private sources
 The loans were given without delay and the entire processing was completed at their
doorstep
 The repayment was also easy

Source: FGDs

9 Participation in community organization: trained versus non-trained

Table 10: Community level participation

Participation Trained Non-trained

in
Full Partial No Full Partial No
community
participation participation participation participation participation participation
organization
37 71 160 9 25 58

While analyzing the participation level of the members in various community development activities, it is
noticed that there is no significant difference between the groups. Across the scale of participation, the pattern
is same in both groups (trained and non-trained).

Members seem to be not very keen in participating in general community development programme. This also
indicates that either the members are fully engaged with Muthoot initiatives or their own Livelihoods
development. Hence, they are not getting time to involve themselves in the other programme. Additionally,
these are slow moving developments and also largely dependent upon local dynamics and culture.

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 Graph 11: Community level participation

Source: Survey Data

Inner circle represents trained clients and outer circle represents non-trained clients.

Conclusion:

 MMM needs to review its training module on community participation if this is one of their
agenda.

9.1 Differing patterns of change in leadership

Table 11: Differing patterns of change in Leadership

Before joining After joining Not at all

MMM MMM

Differing patterns of changes in leadership 69 48 150

skill – Trained

Differing patterns of changes in leadership 10 12 70

skill – Non-trained

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 Graph 12 : Leadership skill

Source: Survey Data

Inner circle represents trained clients and outer circle represents Non-trained clients

Conclusion:

 Leadership skills show no major improvement for trained and non-trained members.

 In overall sample, it is evident that more than half of the clients surveyed are not showing any
change in leadership skills. However, among trained this percentage is less.

 It is also a time taking process and requires intervention at multiple levels for longer periods.

 MMM should review its training modules to ensure that this particular aspect gets proper
attention in times to come.

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 9.2 Decision Making Ability
Graph 13: Respondents’ decision making ability-Trained

Graph 14: Respondents’ decision making ability-un Trained

Source: Survey Data

Interesting pattern has emerged on the members’ decision making ability on critical aspects. Members’ decision
making ability has improved from less than spouse to equal to spouse scale; this confirms that Muthoot’s inputs
are more on gender balance issues. The members and their spouse are maintaining balance in decision making
process.
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However, this trend is more significant among trained than non-trained. Trained members’ decision making
ability has shown quicker movement than that of the non-trained members’. It can be presumed that the impact
is due to inputs provided during the process of training and also access to credit by members.

Conclusion:

 On almost all aspect, women have shown higher degree of decision making ability after
joining MMM program.
 Especially on money, production material, household goods, loan utilization and earning,
women have got decision making power equal to spouse after MMM intervention. The
change is significant among the trained members where their decision making status moved
from less than spouse to equal to spouse.
 Asset purchase decision still remains with spouse.
 Women intervention is more visible in purchase of production material, household material
and utilization of the loan.
 MMM clients in generally have got significant decision making power. In most of the cases
women have either equal or more decision making powers in comparison to spouse.
 Overall MMM intervention and their trainings appear to have a direct impact on the
decision making capacity of its women members.

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10. Impact of Income Generating Loan on Business/Enterprises.

10.1 Impact of IGL on Business

Table 13: Impact of IGL on business

Increase Increase Expande New Increase No Improve Reduced Hired

in sales in profits d size of products in Change ment in expenses more
business launched producti quality of workers
activity on / the
turnover products

Number 117 40 31 29 28 24 13 10 10

Graph 15: Impact of IGL on business / enterprises

Overall results clearly show that IGL has a positive impact on members’ business and enables them to grow and
sustain their business. Nearly 50% impact is seen in terms of increase in profit and sales, while around 30%
impact is in terms of growth of the business.

Its’ interesting to see that nearly 3% of the members enterprises are creating jobs, which is one of the key
achievements. This essentially means that members are not only growing their business, but also providing
employment opportunities to fellow community members. If the percentage of such member enterprises can
be increased over a period of time, it stands to great a huge impact on the ground.

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 10.2 Self-perception

Table 12: Members’ Self Perception

Particulars Trained Non-trained

Feel more confident to run the business

155 28
Feel more confident as a person
50 6
Customers are happy with my business services
9 2
Feel more happy with my business
17 2
No Change
16 5

Not responded 21 49
Overall self-perception of members is quite high. They responded by saying that they feel more confidence in
their professional and personal life. It is interesting to observe that the trend is more or less similar in both
groups of trained and non-trained.

Graph 16: Members Self perception

Source: Survey Data

Inner circle represents trained clients and outer circle represents Non-trained clients.

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 Conclusion:

 The training clearly has an impact on the confidence level of members in handling business and
taking business related decisions.

 As a person, members feel more confident after getting training

 It seems that the confidence level is more due to be MMM program in general than training
specific inputs. It is believed that access to finance has always proved to be important factor in
building members confidence.

11. Swarnavarsham loan

To understand the impact of Swarnavarsham product --one of the unique products of Muthoot Fincorp
Limited, members’ feedback on was captured both in terms of its benefits and value. The findings are
interesting and encouraging.

11.1 Rating Swarnavarsham loan

Graph 17: Rating ‘Swarnavarsham’ loan

The graph clearly shows nearly 95% of the members liked Swarnavarsham product. Out of the 2% who
suggested for improvement, a majority felt that cost can be reduced.

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11.2 Utilization of gold coin offered in Swarnavarsham loan
Graph 18: Buying / utilizing gold coins

Total 153 members find gold coin as indirect way of savings and 110 members said that they will use the
gold coin for making ornaments, while 50 members see it as an investment. The rest said that they will
use it for marriage; during emergencies or for gift it to somebody. Overall members value this product
very highly.

11.3 Swarnavarsham loan a key attraction?

Graph 19: ‘Swarnavarsham’ loan a key attraction

The finding on the attractiveness of the product is positive. Around 69% of members mentioned that the
gold coin is a key attraction for taking loan from Muthoot,

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 When asked if you would take loan without Swarnavarsham, it is interesting to observe that a high
majority (94%) says that they will still take the loan. This reinforces the belief that members perceive
Swarnavarsham as a value added product but not as the main product.

Out of the total responses, 25% suggested an increase in the loan amount for subsequent cycles. Tenure
increment was suggested by 20% of the respondents, and about 20% wanted to increase the weight of
gold coin (Swarnavarsham loan) from 1 gram to 2 grams.

Conclusion:

 Maximum members are satisfied with the product and services of Swarnavarsham loan.

 Maximum Members are using gold coin as savings, investments and for making
ornaments.

 Though maximum members mentioned that gold coin is a key attraction for taking loan
from Muthoot, they will continue availing loan from Muthoot even if gold coin is not
offered

Box 2: Gold coin scheme: A boon to the women

The reasons for preference of the gold coin scheme, especially by women, were their ability
to:-
 invest in gold at their doorstep
 indirect way to save small amounts on regular basis which was not possible in any formal
financial institution
 create emergency asset to give them some security at difficult times
 contribute to their family or near and dear ones during distress
Members felt that availing gold coin was almost like a panacea as it helped in emergency
situation including medical purposes, children’s education and social and religious functions

Source: FGDs

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 12. Feedback on the services

12.1 Client suggestions on Muthoot MMM Programme

Across the total sample of 360 clients, there was a general satisfaction with the microfinance programme of
MMM. In order to analyze clients’ suggestions and feedback, we have divided their response into three broad
areas: namely product, process and Sthreejyothi training.

Table 14: Clients’ feedback and suggestion

Product Process Sthreejyothi Training

To increase loan amount
To increase repayment from 52 weeks to
60 weeks
To increase gold coin from 1 gram to 2
gram weight under Swarnavarsham loan
To introduce loan product with monthly
repayments
To introduce personal loan, housing
loan, two wheeler loan, rickshaw loan
To decrease interest rates
To reduce the documentation process
for secured loan
To speed up the disbursement process
at branch
To be flexible with center meeting
timings
To provide gold coin at the time of
disbursement under Swarnavarsham
loan
To increase rented house up to 60% in
a group
To give subsequent loan immediately
after completion of a loan
To start skill development trainings
every quarter and refresher trainings
To initiate medical and eye camps
To introduce market linkages
programme
To start self-employment training like
chocolate making, animal husbandry,
jute products, poultry farming
To provide training on value addition
in their current products in terms of
moving to next level.
To start Muthoot provision stores

To start discussions in center meetings

To introduce interest fee emergency loan
which women can benefit from in To arrange job fairs
and festival loan
their personal and social-life

To start Muthoot school and children

To introduce top up loan.
To introduce education loan
Individual Loan product with big ticket
size loans enterprises
To introduce center leader incentives
education scholarships
To introduce Swarnavarsham loan
Training on sales and marketing
without gold coin and interest
To organize seating arrangements and
Awareness on farming and on women
drinking water facility for the clients at
related issues like health and hygiene
branch

To start loan products with fortnightly

To increase business loan up to 1 lakh repayment schedules

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 12.2 Feedback from non- trained clients

To capture the feedback of the non-trained clients, a separate analysis was carried out to understand their
specific requirements and expectation from MMM. Few of the key suggestions are mentioned below:

1. Need Sthreejyothi training.

2. Provide Trainings on Business development including market linkages and cash management training.
3. There were suggestions for: tailoring, designs and embroidery trainings, umbrella making training,
saree designing training, and ornaments and jewelry making.
4. Need Mushroom harvesting training, Bakery items training, Paper bags making training, pickle making
training.

12.3 Feedback from other stakeholders

“MMM understands the importance of financial assistance to the poor and provides timely credit
support to the poor and vulnerable groups who are finding difficult to get loan support from financial
institutions.MMM Team-from all the departments-from the top to the bottom gives the full support
for the implementation of the Sthreejyothi programme”.

Source: Accion

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 13 Conclusions
Based on the above findings and analysis, the following conclusions have been drawn with special focus on
important impact indicators.

 Muthoot Mahila Mitra appears to have achieved most of its microfinance programme objectives.
Evidence of the achievements can be seen under income increase and improved quality of life namely
health, education and children’s vaccination.

 In terms of financial inclusion, the results are mixed; members are fully included on credit services, but
moderately included on savings and very less on Insurance services.

 Muthoot Fincorps’ focus in terms of targeting client segment is also in line with its goals. However, the
Socio-economic profile of the members needs to be reviewed both in terms of economic and social
profile, keeping in view the regulatory aspects that govern the newly formed class of NBFC MFI's.

 Muthoot’s approach of using CSR activities to complement its Microfinance programme is yielding good
results. Its flagship programme “Sthreejyothi” is showing positive results and members perceive the
programme as positive. One of the key achievements of the MMM programme is the impact on
Decision Making ability of its members. The findings confirm that members have started taking equal
position in the family in all major decisions. The results are more pronounced among the trained
clients.

 The impact of Swarnavarsham is also very good. However, this is not seen as the key product but as a
value added product. The demand for Swarnavarsham product is quite high and members wants it to
be packaged along with the regular loan and also increase quantum of the Gold coin.

 Impact of IGL product on the Business is also quite good; nearly 50% of the clients confirm that their
profit and sales have increased. While 30% felt it has helped them to expand and grow their business.

 Though the employment/jobs created by members' enterprises is around 3%, it is considered as very
important indicator in social performance management arena.

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14. Recommendations

Recommendations:

 Muthoot can review the social profile of its clients and needs to focus on socio-economically
excluded segments also.

 Further, keeping in view of recent RBI guidelines on MFIs, it is imperative for Muthoot to review
its client profile in terms of APL. This can be measured through below poverty line (BPL)/above
poverty line (APL), social category and status on house ownership.

 In terms of portfolio segmentation, it can diversify to agriculture and allied to mitigate the risk.
This is also required keeping in view the social performance management. The proponents of
SPM also judge quality of MFI based on the range of products and services that it offers to its
community.

 On the products front, Muthoot can offer more flexibility in terms of tenure and frequency,
especially monthly repayment options. This is also considered as one of the critical aspects of
social performance management.

 Muthoot can review their current operations policy on rented house residents’ eligibility and
allow some rented residents to access credit from Muthoot.

 Muthoot can focus on Sthreejyothi with special attention on selection and screening the right
clients for training. Some kind of screening can be carried out to ensure that inputs goes to the
right members.

 Need based skill trainings can also be offered to clients since it is a very specific and clear demand
from the clients.

 Focus on market linkages needs to be improved, especially post trainings.

 Cost-Benefit analysis can be carried out on the Sthreejyothi programme to explore the option of
institutionalizing the programme over a long term.

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 ANNEXURE 1

Impact Assessment Study – Muthoot Mahila Mithra Clients

Muthoot Finance Corporation intends to understand the impact of its various initiatives under Muthoot Mahila
Mitra. To carry out objective assessment, Muthoot requested INTELLECASH do the study. The details of the
respondent will be kept confidential. Hence, request you to give honest response to the following questions. Your
response and suggestions will help Muthoot to improve the program further and bring better services to all its
members.

Client Name: Age: Caste: ST / SC / OBC / Min

Town / Village: State: (Kerala / Tamilnadu / Karnataka)

House (Own / Rented / Lease / Other): BPL / APL:

Start time of interview:

1. Of the following MMM initiatives which services you have utilized [ ]

a) Education initiative b) Health programs c) Sthree Jyothi
d) All the three e) none of the above

2. Which programs did you OR any of your family members attended? (Please tick)
a. Sthree jyothi training k. Educational Material
b. Medical Camp l. Summer coaching camp
c. Health Insurance m. Seminars for parents and children
d. School Going n. Counseling Program
e. College Going o. Sponsorship for higher education
f. Skill Development p. Skill training
g. Anti-ragging campaign q. Heart to heart orchestra
h. Smiles at Muthoot plaza r. Muthoot Ernakulum cricket club
i. MPG pace setter 2007- Talent hunt s. Bakery making training
j. Mushroom training t. Others, please specify
3. Is your family life is insured? [ ]
a) Before MMM b) After MMM c) Not at all

4. Is your family health is insured? [ ]

a) Before MMM b) After MMM c) Not at all

5. Do you have children who are in the age group require immunization? [ ]
a) Yes b) No

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 6. If yes, are they vaccinated? [ ]
a) Before joining MMM b) After joining MMM c) Not at all

7. Is there any change in your family food habits [ ]

a) Yes after MMM b) No after MMM
c) Yes before MMM d) No before MMM

8. How is your family well being? (Please tick (  ) )

BEFORE MMM AFTER MMM
Able to consult doctor for treatment Able to consult doctor for treatment
Relationship
and get medicines and get medicines
Always Never Sometimes Always Never Sometimes
Self
Spouse
Mother
Father
Mother-in-law
Father-in-law
Child 1
(Male / Female)
Child 2
(Male / Female)
Child 3
(Male / Female)

9. Is there any change in family household income level after MMM? [ ]

a) Increased b) Decreased c) Constant

10. How many of your children are going to?

Line Item Girls Boys Total Boys &
Before After Before After Girls in your
MMM MMM MMM MMM family
Going to School / College
Not going to School / College
Going to labour work
Not going to labour work

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 11. Details of loan from Muthoot?
Purpose Loan amount In which year Loan cycle EWI
Income generation
Household expenses
Asset purchase
Gold purchase
Other specify
12. Do you run any business / enterprises / income generating activity? [ ]
a) Yes b) No

13. If yes, when did you start? [ ]

a) Before MMM b) After MMM c) NA

14. Which activity do you do? [ ]

a) Tailoring / Embroidery h) Business / IGA / Enterprise / Trading / Petty shop
b) Agriculture i) Animal husbandry
c) Hotel / Food items j) Beauty parlor
d) Candle making / Agarbatti making / Beedi rolling
e) Dry cleaners / Washing / Cloths ironing k) Paper plates / cups / bags
f) House wife l) Labor work / Daily work
g) Service / Salaried m) Others, Please specify ___________________________

15. Did you attend any skill training program before joining MMM? [ ]
a) Yes b) No c) NA

16. If yes, please list the name of the training _____________________________________

17. Did you setup the business / enterprise / IGA after attending the skill training? [ ]
a) Yes b) No c) NA

18. Did you start the same activity/trade that you are trained? [ ]
a) Yes b) No c) My old activity

19. Are you able to use the skills that are taught in the training? [ ]
a) Yes b) No c) NA

20. Is there any change in the skills after attending joining MMM? [ ]
a) Yes b) No

21. If yes, please tick the option that is feel most useful [ ]
a) Manage financial transactions b) Maintain books of records
c) Manage stakeholders like creditors / debtors / suppliers / financial organizations
d) Manage the cash flows e) Communication
f) Debt Management g) Leadership h) NA

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 22. Is there any change in business / enterprise / IGA? [ ]
a) Increase in sales b) Increase in production / turnover
c) New products launched d) Launched new business
e) Expanded size of business activity f) Improvement in quality of the products
g) Started new shop in another location h) Reduced expenses
i) Hired more workers j) Increase in profits
k) No change l) NA

23. Is there any change in income and financial resources? [ ]

a) Business is in profits b) Increased expenses
c) Savings initiated d) No Profits / No loss
e) NA

24. Did you purchase any of the following assets after Joining MMM? [ ]
a) Home appliances b) Business related
c) Gold d) Land / buildings
e) Not at all

25. Are you able to run your business independently after MMM programs? [ ]
a) Yes b) No

26. If No, who is assisting in your business? [ ]

a) Spouse b) Parents c) Others

27. Are you confident enough to run an enterprise after attending the skill training program?
a) Yes b) No c) Can’t say [ ]

28. Do you feel the need for any other handholding support other than loan? [ ]
a) Yes b) No

29. If yes, which hand hold support did you need the most? [ ]
a) Financial Linkages b) Marketing Linkages
c) Loan support d) Packing / Transport
e) Quality Check f) Designing / Labeling
g) Registration / Licensing h) Advertisement
i) Others please specify __________________________________________________

30. What change do you feel in your self-perception after training? [ ]

a) Feel more confident to run the business / IGA / Enterprise
b) Feel more confident as a person c) Customers are happy with my business services
d) Feel more happy with my business / IGA / enterprise e) No change

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 31. If you have to rate the difference in decision making power before and after joining MMM,
how would you rate on the following parameters?
Item Before NA Less Equal More Fully
/ After than to than independently
spouse spouse spouse
Real assets (Land, Houses) Before
After
Money (Savings, Cash) Before
After
Livestock Before
After
Production materials Before
(Enterprises, Farm tools) After
House hold goods (Kitchen, Before
furniture, TV etc) After
Use of the loan Before
After
Money earned from Before
enterprise After

32. Do you save money? [ ]

a) Before MMM b) After MMM c) Not at all

33. If yes; where and how much does you do save?

Where Before MMM Savings Amt pm After MMM Savings Amt pm
Post office / Bank
SHG
Private / Chits
Piggy bank / Home

34. Are you participating in any community organizations / civil society groups? [ ]
a) Full participation b) Partial participation c) No

35. Are you holding any leadership position in one or more groups or organizations? [ ]
a) Before joining MMM b) After joining MMM c) Not at all

36. How would you rate the disbursement process at MFL branch? [ ]
a) Excellent b) Good c) Average d) Has to improve

37. If has to improve, kindly suggest the improvements? [ ]

a) Service part b) Quality part c) Cost part d) Others specify

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 38. Have you availed any other MFL Product? [ ]
a) Yes b) No

39. If yes, please give the following details of products and services availed?
Products Amount Charges Turnaround Liked Features
time
Money Transfer
Vehicle loan
Gold loan
Gold coin

40. Do you recommend MFL to your friends / relatives? [ ]

a) Yes b) No c) In future

41. Since when do you know about Muthoot? [ ]

a) After availing loan b)Before availing the loan

42. If before, by whom? [ ]

a) Relatives b) Friends c) Neighbors d) Others

43. Can you differentiate between blue Muthoot and other group? [ ]
a) Yes b) No c) Merely

44. Do you want to continue in this MMM? [ ]

a) Yes b) No c) Can’t say

45. If No, why? _________________________________________________________________

46. How would you rate ‘Swarnavarsham’ loan? [ ]

a) Excellent b) Good c) Average d) Has to improve

47. If has to improve, kindly suggest the improvements? [ ]

a) Service part b) Quality part c) Cost part d) Others specify

48. Why do you want to buy gold coin? [ ]

a) For marriage purpose b) An investment c) As savings
d) Help in critical situations e) for giving as gifts f) for making ornaments
49. Is this gold coin a key attraction for taking loan from Muthoot? [ ]
a) Yes b) No

50. If the gold coin is not offered would you like to take loan? [ ]
a) Yes b) No

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 51. How MFL products / activities / trainings / programs can be improved?

52. Any suggestions / comments?

Name and Signature of the interviewer Date and Place End time of interview

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 ANNEXURE 2

Impact Assessment Study – Muthoot Mahila Mithra

Muthoot Finance Corporation intends to understand the impact of its various initiatives under Muthoot Mahila
Mitra. To carry out an objective assessment, Muthoot requested INTELLECASH to carry out the study. The details of
the respondents will be kept confidential. Hence, we request you to give honest response to the following
questions. Your response and suggestions will help Muthoot to improve the program further and bring better
services to all its members.

Name of the organization:

Details of the respondent:

A) Name
B) Designation
C) Contact number
D) Email id

1) Type of Stakeholder:

1. NGO 2. Accion 3. NABARD 4 Other

2) Did you /organization sign a formal partnership agreement with Muthoot?

1. Yes 2. No

If yes, what are the specific objectives of the agreement?

_______________________________________________________________

_________________________________________________________________

__________________________________________________________________

3) What is the tenure of the agreement /partnership?

a) Less than a year b) 1-3 years c) More than 3 years

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 4) In what specific areas have you contributed to the MMM programme.

_______________________________________________________________

_________________________________________________________________

__________________________________________________________________

5) Do you review the programme progress?

a) Yes b) No c) Sometimes.

6) With whom / which department do you interact in MMM

_____________________________________________________________________

7) What has been your experience with MMM association so far?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

8) What are the challenges you have experienced working with Muthoot
_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

9) What are your expectations from this partnership

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

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 10) Do you feel that the MMM programme intervention is having any impact on the end client?
a) Yes b) No

11) If yes can you list down TOP 3 Impact areas?

__________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________
12) How do you think MMM programme can be made more effective?
a) Yes b) No c) Can’t say

13) Do you intend to continue with MMM over long (5 years) period of time?
a) Yes b) No

14) If yes; would your role remain the same or would you want to expand the scope of the
engagement with MMM

____________________________________________________________________

_____________________________________________________________________

__________________________________________________________________

THANKS FOR YOUR VALUABLE TIME AND SUGGESTIONS.

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