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INTRODUCTION:

1.1 Background of the study:


Over the last six years of operation, Grameen Koota has been observing the client exit
from its Micro Credit programme. The dropout trend has remained positive in all the
years of its operation except the year 2003. The client exit has caused much cost to be
borne out by the organization. It not only reduces the client base but has the potential to
affect the sustainability of the organization as well. The reason for dropouts may vary
from personnel to organizational part to Socio-Environmental conditions. However,
getting the right picture was the pillar stone of entire study.
This study seeks to improve the understanding of the levels and structures of client
dropout in GK and the reasons for exit. A clear understanding should help facilitate
efforts to address this problem. Specifically this study seeks:
A) To understand the nature and context of drop out
B) To identify the reasons behind the dropouts
C) Analyze the Socio-Economic characteristics of dropouts
D) Look at the problem critically in terms of its spread and threats
E) To suggest viable measures which will help GK to check the dropout problem

1.2 Methodology and Coverage:


In the study, we largely used qualitative research methods, in particular Interviews with
the dropout members, Focus Group Discussions with the present members and Interviews
with the staffs. The Methodology adopted relied heavily on intensive field investigations
and direct observations. The attempt was to find out the exact reasons behind and
possible solution for the dropouts. We tried to incorporate profile of the members and
some other details in the questionnaire to get the true picture of dropouts.

The work includes:


 Study of secondary sources of GK related to our study.
 Interviews and detailed discussion with 90 dropout members at six different
branches of GK.

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 Focused group discussions and interviews with the present members. The
members here were taken from different groups both age-wise (In GK) and
centre-wise.
 An interaction with GK staffs of different hierarchy, detailed consultations and
focus group discussions with GK staffs (Both in head-office and branch office.)
 Interviews with others: Husbands and other family members of both dropped out
and present clients.

We attempted to capture as much variability in the sample as possible, within the


limitations of resources available. Our work started with formation of three
questionnaires first for dropout members, second for the present members and the third
one for the staffs of Grameen Koota. The pilot survey was done at Kagglipura, the nearest
branch from the head-office where there was the highest numbers of dropouts too. After
the pilot survey, the questionnaire was reframed and some new questions were added. We
selected six branches based on their geographical locations and number of dropouts. FGD
with present members and staffs were held at various centers of these six branches.

Ninety dropout members were selected branch-wise for the interview. The number was
based on the percentage of dropouts. To get a representative picture we included the
members based on durations of relationship with Grameen Koota, amount of loan taken,
and numbers of loan taken. Out of total dropouts, area one alone accounts for 70 percent
of dropouts so in sampling too it has been given the highest representation (72.1%). In
Tumkur the number of dropouts was comparatively less (21). There we took two sample
of dropout members and focused on the interviews with present members. In our survey,
we included six branches of three different areas. Area 3 and area 4 were strategically left
because of their recent formation, similar socio economic conditions, and lesser number
of dropouts.

The sampling plan after the selection of the branches was as follows:

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Table1
Area BRANCH Total No of Percentage Sample Percentage
no Dropout (of these six taken of sample
branches)
1 Kagglipura 1384 758 35.75 30 33.3
1 Channapatna (main) 2430 722 34.05 30 33.3
1 Channapatna(Town) 867 104 4.9 5 5.5
2 Chelur 1366 259 12.21 12 13.3
2 Tumkur 1958 21 0.99 2 2.1
4 Huliyar 1521 256 12.07 11 12.2
TOTAL 9526 2120 100 90 100

We tried to interact with as many members as we could and get their views over
these issues. The study area for branch and village visits was finalized in
consultation with GK. GK personnel also helped us in translation and
classification of the dropout members.

2. MFIs IN KARNATAKA AND GK:


Karnataka is the home for 3.6 millions poor households in the country. The formal credit
system has left majority of the poor household untouched. Even the government
sponsored Bank linkages programmes could reach up to 14.8 lakhs poor. Which clearly
explains that more than two third of the entire poor population of Karnataka will have to
bank upon the credit source other than the formal ones.
The microfinance revolution has not taken a full shape in this state so far. G K is among
the first movers who went ahead with Micro credit programme in the state. Apart from
GK there are few other microfinance institutions, BSS, Bridge foundation etc. which
have made their presence felt. If we consider the scale at which different MFIs are
operating in the state GK has one of the largest member bases.
The big players of microfinance in Andhra Pradesh, Share microfinance and SKS
microfinance are also trying to enter into the state

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If we include the non government and govt. initiatives in this regard we can see lots of
players taking the field, in the days to come, to tap a micro credit market of about
Rs.1800 crore.
When the microfinance market in the state will be seen in totality GK will always be
given more weight to other players simply because of its experience and client reach.

MFIs and their member base in Karnataka


Table2:
MFI Members
GK 22500
BSS 15500
Bridge Foundation 1560 SHGs

3. ABOUT GRAMEEN KOOTA:


Grameen Koota operates through the five districts of south Karnataka and provides micro
credit to the poor in the villages and urban slums falling under its area of operation. It
offers a range of loan and savings product to its clients. Because of legal compulsion, it
doesn’t mobilize deposits.
GK’s mission is to help poor women in rural areas and urban slums with micro-credit, in
order to make them work for themselves and reduce the vulnerability of their families. It
strives to constantly deliver need based financial services in a cost-effective manner and
to become financially sustainable Micro-Finance Institution for the poor.
GK follows the Grameen Bank model of operation.

3.1 Maturity of the Institution:


GK started its operation in May 1999 and since then; it has passed six years of its
operation. Therefore, it can be considered as middle-aged microfinance institution in the
Indian context. Its membership base has grown to over 22500 members till date. It has
more than 17800 active borrowers. Details are shown in the table below.

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Table3
Branches 18
Villages 522
Kendras 823
Members 22461
Active Borrowers 17837
Total savings 138.21 Lac
Total loan outstanding 746.67 Lac
Total Employee 130
(Source: GK glance as on 3rd June 2005)

3.2 Purpose of the Institution:


The objectives of Grameen Koota are
A) To provide poor of villages and urban slum access to credit services
B) To help poor generate surplus income that will enable them a sustained livelihood
C) To develop new financial products targeted at the poor
D) Make the credit available to poor at affordable cost.
3.3 Availability of Finance:
GK is currently operational in four districts of Karnataka namely, Banglore,
Chitradurga,Tumkur, Haasan and Mandya of South Karnataka.It follows the Grameen
bank model of operation.Grameen Koota offers following services:

3.3.1 LOAN
A) Income Generation Loan: It is given for the productive purposes only.
B) Supplementary Loan: This is mainly given to meet working capital need.

C) Welfare Loan: These loans are given for building toilets, houses, acquiring
assets, higher education, etc.

D) Group Fund Loan: Members are eligible to take a loan up to 50% of their
group’s savings (Group Fund Savings) balance with the approval of all the members of
her group.

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3.3.2. SAVINGS
A) Group Fund Savings: This is a compulsory saving done by all the members.
After joining the Kendra, all the group members start saving Rs.5/- (rupees five
only) every week. These savings should be done as long as the members of the
group are in the Kendra
B) Voluntary Savings: This is an optional savings product. Those members who
want to increase their savings can open this voluntary savings account.
C) Kendra Fund: This is also a compulsory saving. All the members on joining the
Kendra should save Re.1/- (rupee one only) every week as long as they stay in the
Kendra
D) Emergency Fund: This is also a compulsory saving. Two percent of the GK loan
taken by the member has to be deposited in this fund, in 50 equal weekly
installments along with the loan repayment
E) Collective Responsibility Fund: This fund is started only when there is a default
in the Kendra and both the Group and the Kendra is not in a position to pay that
week’s defaulted installment.

3.4 Management:
GK has a management team, which is responsible for the effective and efficient
functioning of the programme. It is consist of C.E.O., C.O.O., and Managers (operation,
planning and monitoring, MIS and Finance). The management has the responsibility to
identify the opportunities and act accordingly.

4. DEFINING THE DROPOUTS:


GK considers every exiting member as dropout. It does not make any distinction between
the members who willingly drops out and one who drops out due to some compulsions
like illness, loss in business, natural calamity etc.

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It has been generally seen that dropouts occur in two different ways. First amongst them
is voluntary and the second one is coerced. In the voluntary dropout, members decide to
leave the programme due to various reasons pertaining to their personal will.
Under the voluntary kinds of dropouts, there can be three situations

A) Taking a break: There are certain members who do not want to take the loan for
few months but at the same time do not want to pay the compulsory savings too.
Such members decide to withdraw from the programme for a while and decide to
join later on.
B) Switching over to other MFI: Sometimes members decide to give a test to the
other options available before them. In order to find out which option gives better
return and suits them they decide to leave the present programme and join other
MFI.
C) Withdrawing from the programme: Some members decide to leave the
programme completely and do not wish to come back. It takes place generally in
the case of graduation out of poverty and wrong targeting by the organization. In
both the cases, it has been seen that the credit requirements of member do not
match with the products being offered by the organization. Client exit due to
graduation out of poverty is considered good when it is seen in the light of
mission and vision of the organization.
When a member becomes eligible for bank then also she decides to dropout.

Under the coerced dropouts, there can be two situations:


A) Pushed out by the Group members: When the group members find the fellow
member causing problems they decide to push that member out and ensure
smooth functioning of Kendra. The members perceive the problematic member a
threat to their credit discipline.
B) Pushed out by the MFI: There are certain cases where the MFI view its client non
profitable and problematic and pushes the member out of the programme. It
actually happens when the MFI adopts the policy of anti savings and pro credit
approach.

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5. DROPOUT PROBLEM IN GK:
GK has experienced dropout problems right from the first year of its operation. The data
on dropouts suggest that over the years dropout rates has been increasing. Only in the
year 2003 it showed a downward trend .In the first year of its operation it lost 16
members and thereafter kept on loosing some members. The figure as on 3 rd June stands
4408.Year wise details of dropout has been shown below

Table no. 4
Year 2000 2001 2002 2003 2004 2005
No. of 16 59 225 557 1680 4408
Dropouts
Dropout 8.6% 9.2% 15.17% 13.50% 13.62% 16.40%
rates

The positive dropout has been observed in all the five areas of its operation. Area 1 with
70% of the total drop outs tops the list, whereas its contribution to the total members of
GK is 47%. Branchwise data shows that Kagglipura has the maximum no. of dropouts
both in terms of percentage and absolute figure. Interesting thing about this branch is that
it was the pilot branch of GK. Area wise members and dropouts detail has been shown in
the table below.

Table no. 5
Area Members Dropouts
1 10548 3107
2 5531 591
3 3603 420
4 1701 256
5 1078 34

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The graph below shows the percentage contribution of individual areas in total no. of
members and dropouts respectively.

80%
70%
60%
50%
Members
40%
Dropouts
30%
20%
10%
0%
1 2 3 4 5

Chart 1: Areawise member and dropout share

5.1 Cycle wise Dropouts Details:


A detailed cycle wise analysis revealed that more than 50% of dropouts took place before
or after the first loan cycle. If we take the first two cycles, the cumulative figure comes
out to be around 80%. The records available with GK have validated this further. While
talking to the groups and individuals, we came to know that a group starts with large
number of members and during the course of 1st and 2nd cycle it narrows down.
As per the standard practice of MFI a client becomes profitable for the institution only
after third and fourth cycle. If we see the dropout of G K in this context, it can be said
that GK has paid heavily for the dropout members.

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Number of Loans

60

50

40
Percent

30

20

10

0
Once Twice Thrice Four Times

Number of Loans

Chart 2. Cycle wise dropout

The above mentioned details can be further verified by the fact that majority of dropped
out members had taken a loan of Rs. 5000, the first cycle loan amount.

5.2 Pattern of Dropouts:


We tried to find a pattern of dropouts by doing the seasonal analysis. In the last three
years GK has experienced an increase in the absolute numbers of dropouts in the month
of June over May. A part of it may be attributed to the drought, which took place during

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these years. However, the overall picture that emerged out of this was not showing any
definite pattern.
While talking to the members and staffs, it became clear that there is an irregular pattern
of credit requirements among the members except those who are involved in agriculture
activities. When we see the dropout pattern in totality, no clear picture emerges out of
this.

Dropouts Pattern
No. of Dropouts

300
250 2001-02
200 2002-03
150 2003-04
100 2004-05
50 2005-06
0
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r
r

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eb ry
ve r
be
te t

be

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A ly
il

be

ar
ay

ep us

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a
Ju

m
m

ar
ru
m
Ju

nu
S ug
M

o
A

ct

M
Ja
O

F
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month

Chart 3. Dropout Pattern

6. IMPACT OF DROPOUTS:
The cost of a lost customer is not nominal. . No MFI enrolls any member just to say
good-bye. It invests time, energy, and money in selecting and training them so that it can
have a well-motivated clientele with hopes and determination of overcoming poverty. A
dropout may cost GK as much as a defaulted loan because the organization loses a
lifetime of profits from that customer.
The impact of dropout can be experienced by GK in terms of reduced productivity and
profitability. When a member decides to dropout from the programme it leaves behind an
incomplete group. This incomplete group results in an incomplete Kendra. This in turns

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may lead to the problem of breakdown of credit discipline. And the entire episode has the
potential to lower the productivity.

Dropout members Incomplete group Incomplete Kendra

Low productivity Breakdown of credit discipline

When the impact is seen in the context of reduced profitability what happens that every
exiting members reduces the total numbers of borrowers with GK. As the total number of
borrowers go down it decreases the total amount of loans outstanding and in turn total
operating income. This can make GK financially weak. The whole chain can be depicted
as
Dropping out members Reduces the total no. of borrowers

Reduces the total amount of loan outstanding

Decreases in the operating income

Can make GK financially weak

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In both the cases discussed above a wrong message can go to the existing member and
the community as a whole. We cannot deny the fact that good customers often leave MFIs
because they had bad experiences, such as having to pay for the debts of a group member.
But if the MFI had retained that good customer for five years, then that client might have
generated significant returns to the MFIs, directly in the form of profits, and indirectly
through referrals.

But dropouts can not always be considered bad. There are certain cases of dropouts which
help the organiastion in achieving better results. Dropout taking place because of the
graduation out of poverty is in the interest of MFI especially for those who are working
towards poverty alleviation. Weeding out the undisciplined member is another instance of
positive dropouts. The undisciplined members can rot the entire system and may threat
the credit discipline.
Some amount of dropouts can keep the MFI always awake and can be considered good.
This will allow them to introspect and respond to the client need rather than being
insensitive to the problem and get washed away.

7. SOCIO-ECONOMIC PROFILE OF THE DROPOUTS:


During the course of this study we happen to travel to different branches of GK which are
situated in rural and urban areas. We found that members of GK in urban slums are
relatively better off financially than the one in rural areas, though some members in the
villages can also be termed as relatively better off. If we divide the dropout members of
GK based on their economic status, they may come under three categories
A) Very poor: These members lack the very basic necessities of life and desperately
look for credit. A sizable chunk of dropouts members fall in this category.
B) Poor: Some of the dropped out members fall in this category. These people need
credit in order to make their respective activities sustainable. Any major expense
due to illness or marriage can push them into the category of very poor.

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C) Not so poor: In GK the presence of such members has been noticed. Among the
dropouts, also they have been found. Usually these people need big size loan in
order to meet their credit requirement hence they join the programme. These
members are prone to overlapping. Once they become eligible for bank they
decide to leave the programme.

7.1 OCCUPATIONAL PROFILE:


If we look at the occupation of the dropout members, we find that majorities of them are
involved in micro enterprise and petty business. Around 63% of the dropout, members
are involved in those activities. Micro enterprise includes the activities like Bidi making,
Agarbatti, Bangle making, Broomstick, Wooden tiles and Rope making. Whereas petty
business includes the activities like vegetables and fruit shop, Small kirana shop, Paan

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shop etc. Agriculture and allied activities comes second, followed by animal husbandry.

Occupation

40

30
Percent

20

10

0
Micro Enterprise Animal Husbandry Agriculture and Petty Business others
Allied Activities

Occupation

Chart 4. Occupational details

8. INCOME EXPENDITURE ANALYSIS:


We tried to get an idea about the cash flow of dropout members. Most of the dropout
members are involved in micro enterprise and related activities. They do not get the
steady income over entire period. These members experience fluctuating income. Their

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activities hardly show any variability with a particular period. Some of the dropout
members who are predominantly dependent on agriculture need money during the
monsoon and get good inflow of money in the harvesting season. Those members who
are involved in animal husbandry may experience the inflow of money either daily or at
one point of time. For those who are involved in the activities like selling milks have the
inflow of money on regular basis but for them who are in sheep and goat rearing it is a
sort of one time deal.

All the dropout members, who were interviewed, spend money generously during the
festivals. In urban slums, people were seen making good investment in child education
and hence during the time of admission they need more money. Marriage is an occasion
where people spend huge amount of money. This is a major event in term of the amount
outflow of money.

9. REASONS FOR DROPOUTS:


There are three major elements in micro finance programme first is the member
(client), second is the service provider (the MFIs) and third is the outside interference
by the environment. The reasons for dropouts come from all the three sides, from
members’ side, from the Organisation side and from outside environment. These
reasons can be broadly categorized into three parts 1) Personal Reasons 2) Institutional
Reasons 3) Socio-environmental Reasons. During our field visit, we came to know that
in majority of the cases the reasons for dropout were more than one that too from the
different categories mentioned above.

9.1 PERSONAL REASONS:


Reasons that arise from the client side come under this category.
9.1.1 Lack of ability to gainfully use the loan
Many a times the clients are not aware of the complexity of their businesses and they
find themselves incompetent in utilizing the loan amount properly. This builds pressure

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on the clients to earn on the loan amount so that they can make regular payments to the
MFIs. The repayment schedule is fixed in nature so they cannot skip the schedule. Some
times the clients borrow some amount from other sources for the weekly repayment; this
further adds to their problems. The clients ultimately leave GK by taking her saving
deposits.
9.1.2 Loss in business:
The businesses done by the clients are not always profitable. Only the clients share
any loss in her business. The loss in business reduces inflow of money, which directly
affects the money availability for repayments. Once the repayments schedule is broken,
the pressure increases over the clients. Some clients prefer to leave GK at that situation.

9.1.3 Repayment problems:


This is one of the important reasons for dropouts in GK. Members, who do not have fixed
income, sometimes find themselves unable to continue with the repayment. It leads to
problems like absenteeism. The client initially tries to come up with any solutions but
many times; she fails and ultimately decides to leave the programme. In GK about 26%
of the members cited repayment problems as the reason for leaving the programme. (See
annexure one for details)

How can I repay?

Lakshyamma lives in Anedoddi village of Kagglipura block in Karnataka. She joined Grameen
Koota in 2003. She took a loan of 4000 and invested the amount in purchasing of disc antenna.
Her son looks after this business. The payment done by the villagers for the cable connection was
on monthly basis. The money was collected the villagers and from that money the loan amount
was paid by Lakshyamma. Initially the things were under control but gradually she fined it
difficult to repay the amount weekly wise. At few occasions she was helped by the group
members
9.1.4 too but the problem of repayment continued. She finally left the programme.
Irregularity:
The problem of irregularity arises because of various reasons like loss in business,
repayment problems, and disinterest shown by the clients. The irregular client
sometimes creates problems to the whole group. In GK, there is a rule that at the time
of loan disbursement every member should be present. Sometimes because of the

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irregular member, the loan disbursement schedule gets delayed. It causes
inconvenience to other group members. Many a times fellow group members ask
such member to leave the programme.

9.1.5 Dual membership or overlapping:


Credit needs of some members are not always satisfied by one MFI. Sometimes the
member takes loan from different MFIs simultaneously. Loan taken by the member is not
always productive even used in productive activities the gain is not assured. If there is
any loss or lower return than the estimated one the member finds it difficult to make the
repayment simultaneously. Consequently, either she tries to associate herself with one
MFI only or she leaves both the MFI. In GK, there are several cases (more than 20%, See
annexure one) where the members went to other MFI or SHG bank linkage programme
“Stree-Shakti” ( Stree-Shakti is a state sponsored programme for SHG bank linkage
which provides subsidy and various other benefits to the members for details, see
annexure 5.)

Other programme is more suitable.

Zareen Taj lives in Navgram, a small colony in Huliyar, Karnataka. She joined Grameen
Koota in 2003. She took a loan of 5000 for her bidi business. She got good returns from the
amount invested and had no problem with the repayment too. During the first loan cycle
itself, she came to know about “Stree-Shakti.” She was told about the programme and the
comparative benefits. She compared the programme on every aspects and find state
sponsored Stree-Shakti more suitable for her. She joined Stree-Shakti. After some time she
found it difficult to continue with both the programmes because of two different repayment
schedule and meeting time. She finally left Grameen Koota after successful completion of
her first loan cycle.

9.1.6 Graduation out of poverty:


This is one of the positive reasons of the dropouts. If the member utilizes the loan
amount properly, it improves the overall economic condition of the family and
enables her to achieve sustainable livelihood. Then onwards member starts looking

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for big size loan and in the absence of this, she decides to exit the programme.
About 14% of the respondent from personal reason category left the programme
because of this reason (See annexure 1)

I need more credit.

Razia, a resident of Badamakan slum at Channapatna in Karnataka. Her family is involved in


traditional business of Bangle making. She joined Grameen Koota in 2002 for her credit
requirement. She took a loan of 5000 and invested in the business of Bangle making. She
bought one small machine and raw materials by this loan amount and some previous savings.
The wooden bangles, which she prepares, are highly profitable. She took a loan of 7000 next
years too for the same business. She admits that because of these loans the economic condition
her family improved significantly. Initially her husband was just a worker, working for others
only. Now they own a small workshop. Razia, now needs higher amount of 40,000 or 50,000 as
credit. She is looking forward to link herself to any bank. She finally decided to leave Grameen
Koota.

9.1.7 Migration
The members of GK sometimes migrate to some other place to work as a lobourer
or because of some other reasons. The migrations are of two types one is permanent
and other is temporary. If the member has migrated permanently then she leaves the
programme completely. Whereas the migration is temporary in nature then also the
group members force them out because any irregularity would affect them badly.
One of the important reasons for migration is pregnancy, during pregnancy; they
customarily go to their native place and come back only after the period gets over.
There is provision of three-month leave for pregnancy in GK.

9.1.8 Family pressure


The members in GK are women; their control over the decision-making processes
is limited. Members at some occasions leave GK because of the various family problems
like conflict within the family or any extra work burden over her.

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9.1.9 Health problems
Like everyone else the members of GK also suffers from health problems and if
the problem persists longer then it causes absenteeism. The extra expense made over
the medicines and doctors make them economically more vulnerable. In GK, a good
number of members leave because of the pregnancy alone. During our survey about 11%
of dropped out members cited this as a major reason (For details see annexure one)

Was there any way left for me?

Haleema Bi, resident of Indira Nagar an underdeveloped colony in Huliyar, Karnataka. She
joined Grameen Koota in 2003 for her credit requirements. She took a loan of 5000 and used
the money in her husband’s small cycle repair shop. She used to attend the weekly meetings
regularly and timely. In the repayment, too she had no problems as her husband was getting
regular income from the cycle shop. She successfully completed her first loan cycle after
paying the loan amount plus the interest charged. Meanwhile she became pregnant and found
herself unable to attend the weekly meetings. She took leave for three months. (There is a
provision in GK that a member can take a leave for three months in case of pregnancy.). During
this period, she gave birth to her fourth child. She became weak and had very little time spare
for any other activities. The three-month period finished very quickly. After four month, too she
was not able to attend the meetings. She finally left the programme as well as Grameen Koota.

9.1.10 Death of members:


The death of member permanently ends the relationship with GK.

9.2 INSTITUTIONAL REASONS:


Reasons that arise from the organizational side come under this category. This category
consists of both controllable and uncontrollable reasons.

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9.2.1 Wrong targeting
The nature of credit need differs from member to member. The criterion, which
is seen by the GK personnel before giving the membership to any woman, is the
degree suitability with the programme. Sometimes the staff misjudges and targets
a wrong customer. Wrong customers are those customers who need much higher
loans than what is being provided by GK, or their income is not such that they
could repay the loan properly. In GK, there are many cases of wrong targeting,
(We found about 11% members were wrongly targeted by GK during our survey
for details see annexure two). These clients sometimes leave the programme
within first loan cycle or even without taking any loan from GK.

9.2.2 Mismatch between member’s need and product


The credit and saving options provided by GK should match the customers’
need. The need of customer is not similar, but the product provided by the GK is
standardized. Many clients join GK for saving purpose too, but the compulsory
saving amount is fixed and in voluntary savings, the interest is lower (4%). Therefore,
some of the clients consider this programme less suitable and leave the programme.

9.2.3 Higher interest rates:


The interest charged by GK is 18% flat plus 2% insurance charge. Since the
interest charged here is flat so effectively, it comes around 34% per annum. In SHG
bank Linkages programme interest is charged on the residual amount only. The
interest charged in such programme (like Government sponsored “Stree-Shakti”) is
24% per annum. The comparatively high interest charged by GK also causes some
clients to leave the programme.

9.2.4 Time and schedule of meetings


This is one of the important reasons for dropouts. Time and schedule of the
meeting is decided by the Kendra Manager in consultation with the members and

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branch manager. The constraint here is the timing of banks. The amount collected by
Kendra manager is deposited in the bank on daily basis. The meetings at present are
largely held in morning only (Because of security reasons, Bank timings and
availability of the members). It does not suit all the members, especially for those
who have school going children. GK personnel can entertain this demand only if the
number of such members is significant, for few members they cannot cause
inconvenience to other clients. In many cases, (23.3%) clients leave the programme
only because of the time and schedule of meeting

Change the meeting time

Parween lives in Tipunagar, a semi-developed colony in Channapatana, Karnataka. She


joined Grameen Koota in 2004. She took a loan of 5000 for her business. The weekly
meeting time of the center was 8 A.M. early in the morning. She found this time highly
inconvenient for her. She had to send her son and daughter to school. She was also
supposed to prepare breakfast for her husband and children in morning. She raised this
issue in front of other group members and the Kendra Manager of Grameen Koota; few
other members too had the problems with the schedule timings. However, many of the
members were quite comfortable with the present timings. Kendra manager expressed
his helplessness about any change in the scheduled timings. She left the programme
after first loan cycle.

9.2.5 Delay in approval and disbursement of loans:


The delay in the approval of loan also causes few members to leave the
programme. In GK, the loan is not sanctioned if there is a single case of

22
absenteeism. Sometimes this delay in the loan disbursement led to dropout of
member.

9.2.6 Unfavorable terms and conditions:


The members some times find the terms, condition too stringent, and decide to
leave the programme. This problem is not significant in GK (During the interaction
with dropout members we rarely find this as a reason for dropouts.)

9.2.7 Leadership problems


Every group has one leader. The work of leader is to collect the saving amount
and arrange the documents before the GK personnel. The leader also plays major role
at the time of loan disbursement. In GK, the members themselves decide who will
take the loan based on their requirement; the leader plays an important role here. If
some one feels that, the members and the leader have ignored her genuine
requirement of loan, she opts out from the programme.

9.2.8 Conflicts with group members:


There is always a possibility of conflict when the group members make
decisions collectively. The conflict arises not only because of the group activities but
also due to some other activities that has nothing to do with GK or the programme.
The members are generally from the same locality and they many times have
confrontations over some local issues and which results in conflicts within the groups.
The impact of small skirmish sometimes led to complete center dropouts. During our
survey about 16% of the respondents consider this as an important problem. (For
details, see annexure 2)

I cannot work with my neighbour.

Bashira, a small cloth merchant of Chelur block in Karnataka. She joined Grameen Koota in
June 2004.In her village Bellavi she joined the nearest group where some of her neighbours
were the members. She took a loan of 2000 from GK as IGL (Income generating Loan). She
invested the money in her business. One day her family had a skirmish with the neighbour over
the issues related to drinking water. Her neighbour was also the group leader in GK. She
decided not to have any relationship with that leader. She followed her husband23
decision of
leaving the programme as well as GK.
9.2.9 Lack of mutual trust:
The loan amount given by GK is a group responsibility. The members are
collectively responsible for the amounts. It becomes imperative for any group to have
mutual trust. Some members do not trust the other group member and leave the group
as well as the programme.

9.2.10 Do not want to share the responsibilities of defaulters:


In GK, members do not give any physical collateral. If anyone defaults, the
defaulted amount is being collected from the other group members. There is a special
provision for this in GK; the defaulted amount is collected from the members under
collective responsibility fund. A significant number of members have shown
reluctance for the same. Depending upon the size of default amount, member does a
cost benefit analysis of being in the group. If she finds it less beneficial because of the
extra
Whyamount being
should paid
I pay forby her in the name of CRF she loves to quit the programme.
others?
About 28 % of the respondents consider this problem as an important problem.
Lakshami S. lives in Tarlu village of Kagglipura, Karnataka. She joined Grameen Koota
in 2001. She took a loan of 4000 and used this money in her small vegetable shop near the
highway. She was one of the regular members in her group. In the first year itself, one of
the members left the group. She together with other members was forced to deposit some
amount of money as CRF. (Collective Responsibility fund, which is created when any
member defaults.) In next year too there was a similar case in her group. She completed
two successful loan cycles in GK, and in the third year, she decided to leave Grameen
Koota. Many other members who had similar view followed Lakshami S., because of this;
24 for
there was a complete center dropout in Tarlu. She says how she can be responsible
someone else’s fault.
9.2.11 Lack of proper training:
The compulsory group training (CGT) provided by GK personnel tell the
members about the procedures followed in GK. This training is the initial ice
breaking process. Sometimes few members do not understand the procedures and
have some basic misconceptions about the programme. These members leave the
programme at very early stages (In many cases within the first week itself)

9.2.12 Misbehavior of the staffs:


The behaviour of the ground staff is important for the good and long
relationships with GK. This is not an important reason for client dropouts in GK. (We
never encountered any member who dropped out because of the misbehavior of the
staffs)

9.3 SOCIO ENVIRONMENTAL REASONS:


The reasons that are caused by the outside environment come under this category. In GK,
this type of problem is not significant. (There are very few cases where the members left
because of these reasons.)

9.3.1 Drought or any other natural calamity


Sometimes because of the natural calamity, many families have to leave the place
completely and this migration causes dropouts of the members.

25
9.3.2 Religious influences:
Sometimes religious leader tries to influence the group members and force
them to leave the programme.

9.3.3 Expenses because of various ceremonies:


The members sometimes are forced to bear expenses like marriage and other
cultural ceremonies. This extra expense badly affects the economic condition of
family and their ability to repay the loans.

9.3.4 Class Consciousness if relatives are rich:


If the relatives of any member are, rich then sometimes the member feel shy in
sitting with the poor women and decide to leave the programme.

9.3.5 Culture of relief:


The culture of relief and casual approach also causes some members to leave
the programme.

10. SUMMARAY ANALYSIS AND RECOMMENDATIONS


Based on the findings we can conclude that
A) Dropout was found more during the initial two cycles. No definite seasonal pattern
of dropout was found.
B) The reasons why dropouts occur vary; however, the main ones identified include
repayment problem, overlapping, Health problems, time, and schedule of the
meetings, group conflicts, and responsibility sharing.
C) Members of different socio-economic groups leave the programme for different
reasons. Not so poor Participants dropout either to access more funds or because they
are tired of the meeting requirements. Poorer members dropout largely because they
are unable to cope with business or personal shocks like illness or death and are

26
unable to continue with the programme. Poor members tend to dropout either to get
access to their savings built up over a period or to “rest” and return after some time.
D) Ninety percent of the respondent had credit options available other than GK. The
prominent among them are Govt. sponsored Stree Shakti programme,
Moneylenders and BSS another MFI operating in Karnataka.
E) Weekly repayment has been widely acknowledged by the members but the failure
to take into account the cash flows has caused the discontent
F) Majority of the dropout members view the first and second loan amount bit small.
They are of the opinion that to begin a business or micro enterprise they need
more credit than what they get from GK.

10.1 RECOMMENDATIONS:

10.1.1 Proper selection process of members at the very beginning level:


In our study, one of the main findings was that not all the members are equally
interested in the programme. Some of the members are not the desired customers of
GK. These customers join the programme halfheartedly and show casual approach
from the beginning itself. They either need higher amount or have some problem with
the group members. We found about 11% of the dropout members as wrongly
targeted and 16% were having problem with group members. In GK there is a process
of selection which begins from the village survey and ends with MBDF (Member’s
basic data form). Where the staff goes to the house of the applicant and tries to know
the condition of the family. GK needs to make these processes better so that any
wrong client can be sorted out at very earlier stage.

10.1.2 Increase the Member centrality:


Any member will remain in GK only if her stake is high. GK, therefore, try to
maintain its higher values in the member’s life. If the member feels GK worthwhile
then only she can stay for a long time. GK can increase member centrality of the
clients by these processes.

27
Product diversification (Insurance etc): It is highly recommended to GK to carry on
its insurance project which has been launched in the collaboration with ICICI
Lombard and look for the similar ones. This insurance product will enhance the
image of GK from a loan provider. Those members who may not be fully satisfied
with the loan or saving products may get attracted towards the insurance product. As
significant numbers of GK loans are made towards animal husbandry where the risk
of asset loss is quite high, such product can help the members in reducing the risk.

Linkages with micro-enterprises promoting agencies: In many cases we found that


members were not clear about the nature and viability of their business. They need to
have a source from where they can gather information about various micro enterprise
activity and if necessary the training too. GK need not to provide the training itself,
but it can act as a facilitator. If the members are able to do a viable and profitable
business, it will ultimately help GK in achieving its objective.

Awareness about ongoing project of GK: Many times members are not aware about
the development going in GK and its operations. If the members are regularly told
about the development taking place in GK and about successful members who
utilized the loan amount properly, it will increase the interest of the members. This
motivation will build their relationship stronger.

Big size Loan: This is the most common demand of all the present members as well
as the dropout members. Many members left GK only because of the lower loan
amount provided by GK. During our survey when we asked the conditions of
rejoining from the dropout members most of them said they might consider rejoining
GK if the loan amount is increased. The argument made in this favors was that the
setting up cost for any activity is high. And the first loan of Rs. 7000 is not
commensurable with that.
If we see the repayment rate of GK, it is among the best in industry, so increasing
the loan amount can not be a much risky venture. But what should be the exact

28
amount of first loan cycle need to be studied carefully taking care of the cost and
benefit it will accrue to the organization.

10.1.3 Targeting the Controllable problems

Time and schedule: In our study 23.3% of the respondent said this as a major problem
behind their dropout. There are some constraints in changing the schedule and
timings. But considering the importance of this reason GK has to find some way to
make sure that because of the timing no one should leave.

Health related issues: About 11% of the dropout members left GK because of health
problems. Pregnancy is the main reason for that. However, there is a provision of
leave for such members and they can continue after three months of leave. In spite of
that a majority of them did not rejoin the programme.We found that after pregnancy
period is over very few members are approached by GK staffs. If GK keeps a record
of these members and approach, them after sufficient time they may come back and
rejoin the Programme.

Repayment schedule: During our survey we came across a fact that majority of
present members are supporting weekly repayments. However, among the dropout
members, many were found not comfortable with the weekly repayment system. GK
should look into this issue and see the viability of any programme where some other
repayment schedule could be incorporated.

10.1.4 Comprehensive Database management: It is highly recommended for GK to


have a better database of deserting members. For any MFI retaining the members
is equally important to recruiting new one. We found in GK the database about
dropouts is not being maintained properly. We recommend a good database
management in organization especially about dropouts. That will help the
organization in understanding the nature and pattern of dropouts more
comprehensively thereby enable GK to respond in better-informed way. We

29
recommend GK to use the sample form, which has been prescribed by us (see
annexure 11).

10.1.5 Training: Staffs in GK were not viewing the problem of dropouts as an alarming
one. They were seen more interested in recruiting the new members than making
an attempt to retain the members. Therefore, GK should try to make them
understand the worth of it by means of proper training in this regard.

Aneexure 1
Personal Reasons
Frequenc Valid Cumulative
y Percent Percent Percent

30
Valid Lack of ability to use
1 1.1 1.5 1.5
the loan
Loss in business 3 3.3 4.6 6.2
Repayment Problem 17 18.7 26.2 32.3
Irregularity 2 2.2 3.1 35.4
Overlapping 13 14.3 20.0 55.4
Graduation out of
9 9.9 13.8 69.2
Poverty
Migration 5 5.5 7.7 76.9
Family Pressure 3 3.3 4.6 81.5
Health Problem 7 7.7 10.8 92.3
Death of member 2 2.2 3.1 95.4
Others 3 3.3 4.6 100.0
Total 65 71.4 100.0
Missin System
26 28.6
g
Total 91 100.0

Personal Reasons

Lack of ability to use the


loan
Loss in business
Repayment Problem
Irregularity
Overlapping
Graduation out of
Poverty
Migration
Family Pressure
Health Problem
Death of member
Others
Missing

31
Annexure 2

Bar Chart

14 Institutional Reasons
Wrong Targetting
Mismatch
12 High Interest Rates
Meeting timings
Delay in lending
10 procedure
Leadership
Count

Conflicts (Group)
8
Responsibility Sharing
Training
6 Others

0
Kagglipura Channapatnam Channapatnam Tumkur Chellur Huliyar
(Main) (Town)

Branch Name

32
Annexure 3
Branch wise personel reasons details

33
Bar Chart

10 Personal Reasons
Lack of ability to use the
loan
Loss in business
8 Repayment Problem
Irregularity
Overlapping
Graduation out of
Count

6 Poverty
Migration
Family Pressure
Health Problem
4 Death of member
Others

0
Kagglipura Channapatnam Channapatnam Tumkur Chellur Huliyar
(Main) (Town)

Branch Name

Annexure-4

Branchwise institutional details

34
Bar Chart

14 Institutional Reasons1
Wrong Targetting
Mismatch
12 High Interest Rates
Meeting timings
Delay in lending
10 procedure
Leadership
Conflicts (Group)
Count

8 Responsibility Sharing
Training
Others
6

0
Kagglipura Channapatnam Channapatnam Tumkur Chellur Huliyar
(Main) (Town)

Branch Name

Annexure 5

STREE SHAKTI

35
The scheme was launched during 2000-01 with an objective to empower rural women
and make them self-reliant. Self-help groups are formed at the village level through a
network of 40,300 Anganwadi Centres in the State.
Objectives : 1. To strengthen the process of economic development of rural women and
create a conducive environment for social change.
2. To form one lakh Self Help Women Groups based on thrift and credit principles which
builds self reliance and enable women to have greater access to control over resources.
3. To create self-confidence in rural women by involving them in income generating
activities thereby contributing to poverty alleviation.
4. To provide opportunities to the members of the groups to avail the benefits of other
departmental schemes by converging the services of various departments and lending
institutions to ensure women's access to credit financing.
Target Group: The criteria adopted for the formation of groups are
a) Women living below poverty line
b) Women landless agricultural laborers
c) Women belonging to SC/STs
d) Families having alcoholics, drug addicts, or physically disabled persons.
Training:
Phase -I: Initially an orientation about the scheme was given to all implementing field
functionaries & SHG members.
Phase-II: Training was imparted on diverse subjects-Gender, Communication skills,
Leadership qualities, book keeping to 11lakh members of SHGs and 40000 AWWs
through 'CORE' training team.
Phase-III: As on date 67093 SHGs have been trained in bookkeeping, 58046 Self Help
Groups in credit management and 45177trained in social issues.
Revolving fund
An amount of Rs.38.18 Crores was released as revolving fund for 76355SHGs,at the rate
of Rs. 5000/- per SHG, covering all the districts. In addition, an amount of Rs.569.16
lakhs was released under SGSY scheme of RDPR dept. as revolving fund to 7634 SHGs.
Convergence of services
Under "New Swarnima" scheme, National backward class corporation, has sanctioned an
amount of Rs.14.70 crores as direct loans to 14325women of 11795 SHGs
Dept. made efforts to secure loan amount of Rs. 2.20 crores from SC/ST Development
Corporation to 1555 women from 156 SHG's to take up income generation activities.
Dept. of Animal Husbandry provided 122775 Giriraja birds to 6501members from 11748
SHGs to take up poultry activities.
Stree Shakthi women members of 8 districts are being trained regarding construction
work in Nirmithi Kendras by Rajeev Gandhi housing Corporation and so far 468
members of 52 SHGs have already taken up construction work as their profession.
Members of few SHGs have taken up the sale of products of Hindustan Lever Ltd. on
commission basis as an income generation activity.
Income generating activities During the last 3 years 44609 Stree-Shakthi groups have
taken up following
Income generation activities:
Akshara Dasoha Programme-12630 SHGs are involved
* Dairying,

36
* Poultry farming
* Manufacture of Readymade garments
* Petty shops
* Manufacture of organic manure
* Mat weaving
* Pickles, papads and condiments, etc,.
Incentives to stree shakti groups
An amount of Rs.15, 000/- as incentive to groups with a saving ofRs. 75,000 - 1 lakh. So
far, 189 such groups have been given incentive amounting to Rs. 28.35 lakhs. An amount
of Rs. 20,000/- as incentive to groups with a saving of Rs. 1lakh and above. So far, 30
such groups have been given incentive amounting to Rs. 6 lakhs.
Committees to monitor the implementation
State level committee-headed by Chief Minister.
District level Committee-headed by District Collector.
Taluk level Committee- headed by Executive Officer of Taluk
Panchanyat.
Progress upto march 2004
Number of groups formed 100000
Number of women members

SC 310358
ST 118359
Min 99779
Others 951298
Total 1479794

Number of accounts opened 87636


Total savings Rs.176.60 crores
Credit linkage 30361 SHGs
Bank Loan Rs.101.86 Crores
Source: Gov of Karnataka web site

Annexure 6

37
Loan amount wise details of dropouts

Amount of Loan

50

40

30
Percent

20

10

0
2000 3000 4000 5000 6000 7000 9000 10000 11000 12000 15000 15000 more
to than
20000 20000

Amount of Loan

Annexure 7

Branch wise loan cycle dropout details

38
Branch Name * Number of Loans Crosstabulation

Count
Number of Loans Total
Once Twice Thrice Four Times
Branch Kagglipura 4 16 3 7 30
Name Channapatnam (Main) 17 10 2 0 29
Channapatnam (Town) 5 0 0 0 5
Chellur 10 0 0 0 10
Huliyar 9 1 0 0 10
Total 45 27 5 7 84

Bar Chart

20 Number of Loans
Once
Twice
Thrice
Four Times
15
Count

10

0
Kagglipura Channapatnam Channapatnam Chellur Huliyar
(Main) (Town)

Branch Name
Annexure- 10

Likingsabout Grameen Koota

Cumulative
Frequency Percent Valid Percent Percent

39
Valid Punctuality 18 19.8 36.0 36.0
Loan Product 5 5.5 10.0 46.0
Savings Product 4 4.4 8.0 54.0
Operational Procedures 5 5.5 10.0 64.0
Socialization 11 12.1 22.0 86.0
Pledge 6 6.6 12.0 98.0
Others 1 1.1 2.0 100.0
Total 50 54.9 100.0
Missing System 41 45.1
Total 91 100.0

Likingsabout Grameen Koota

Punctuality
Loan Product
Savings Product
Operational Procedures
Socialization
Pledge
Others
Missing

Annexure- 11
Sample Exit Form

1. Customer Name: 2.Village:

40
3. Staff Name: 4.Date:

5. Total loan taken:

6. A. Amount of most recent loan: B. Loan cycle no.

7. Amount of savings:

8. Duration of relationship with GK:

9. Occupation: A. Micro enterprise B. Agriculture C. Animal husbandry D. Business


E. Others

10 Average monthly Income:

11. Was member asked to leave GK? Y / N


12. Tick the most likely Reasons for Dropping out
1. Repayment
2. Irregularity
3. Dual Membership
4. Migration
5. Health Problem
6. Family Problem
7. Group conflict
8. Do not want to share the responsibility of defaulter
9. Small size loan
10. Time and Schedule of meeting
11. Others if any
13. If member has switched over to other programmes, the most
important reason is:
A) Better staff
B) Better loan product (terms, payments, rate)
C) Better savings product
D) Convenience of location
E) Less restrictions or requirements
F) Other________________________

14. I would rejoin GK if___________________________

Annexure12
QUESTIONNAIRE
(DROPOUT MEMBERS)

41
1. NAME: 2. VILLAGE:

3. OCCUPATION: 4. BRANCH:

5. DURATION OF RELATIONSHIP WITH GRAMEEN KOOTA (IN WEEKS):

6. TRANSACTION DETAILS:

6.1 NUMBER OF LOANS TAKEN:


6.2 AMOUNT OF LOAN TAKEN:
6.3 PURPOSE(S) OF LOAN(S) :

7. REASONS FOR DROPOUTS:

7.1 PERSONAL REASONS:

7.1.1 Lack of ability to gainfully use the loan []


7.1.2 Loss in business []
7.1.3 Repayment problems []
7.1.4 Irregularity []
7.1.5 Overlapping []
7.1.6 Graduation out of poverty []
7.1.7 Migration []
7.1.8 Family pressure []
7.1.9 Health problems []
7.1.10 Death of members []
7.1.11 Others (if any) []

7.2 INSTITUTIONAL REASONS:

7.2.1 Wrong targeting by Grameen Koota []


7.2.2 Mismatch between members need and product. []
7.2.3 Higher interest rates []
7.2.4 Time and schedule of meetings []
7.2.5 Delay in approval and disbursement of loans []
7.2.6 Unfavorable terms and conditions []

7.2.7 Leadership problems []


7.2.8 Conflicts with group members []
7.2.9 Lack of mutual trust []
7.2.10 Do not want to share the responsibilities of defaulters []
7.2.11 Lack of proper training []
7.2.12 Misbehavior of the staffs []
7.2.13 Others. []

42
7.3 SOCIO-ENVIRONMENTAL REASONS:

7.3.1 Drought or any other natural calamity []


7.3.2 Religious influences. []
7.3.3 Expenses because of various ceremonies. []
7.3.4 Class Consciousness if relatives are rich. []
7.3.5 Culture of relief []
7.3.6 Others. []

8 IF MIGRATION, THEN WHY? (Addition to the question 7.1.7)


...............................................................................................................................................
...............................................................................................................................................
...........
9 IS THERE ANY PARTICULAR PERIOD WHEN YOU NEED MORE CREDIT? IF
YES THEN WHEN? (.......................)

10 HOW YOU ARE MEETING YOUR CURRENT CREDIT REQUIREMENTS?


A). MONEY LENDERS B) BANKS C) MFIs D) OTHERS (..................)

11. IF YOU HAVE DECIDED TO JOIN OTHER PROGRAMME, THE


IMPORTANT REASON(S) IS/ARE:
A. Better Operational procedures. []
B. Better loan product []
C. Better savings product []
D. Less restrictions on requirements []
E. Others []

12. I LIKED THESE THINGS DURING MY RELATIONSHIP WITH GRAMEEN


KOOTA:.................................................................................................................................
...............................................................................................................................................
........................................

13. I WILL REJOIN GRAMEEN KOOTA


IF............................................................................................................................................
...............................................................................................................................................
......................................
14. REMARKS:
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
............

Annexure13
QUESTIONNAIRE
(PRESENT MEMBERS)

43
1. NAME: 2. VILLAGE:

3. OCCUPATION: 4. BRANCH:

5 DURATION OF RELATIONSHIP WITH GRAMEEN KOOTA (IN WEEKS):

6 TRANSACTION DETAILS:

6.1 NUMBER OF LOANS TAKEN:


6.4 AMOUNT OF LOAN TAKEN:
6.5 PURPOSE(S) OF LOAN(S) :

7 I AM IN GRAMEEN KOOTA BECAUSE OF THESE REASONS:


7.1
7.2
7.3
7.4
7.5

8. I WANT THESE CHANGES IN THE MODUS OPERANDI OF GRAMEEN


KOOTA:
8.1
8.2
8.3
8.4
8.5

9 MEMBERS LEAVE GRAMEEN KOOTA BECAUSE:

9.1 PERSONAL REASONS:

9.1.1 Lack of ability to gainfully use the loan []


9.1.2 Loss in business []
9.1.3 Repayment problems []
9.1.4 Irregularity []
9.1.5 Overlapping []
9.1.6 Graduation out of poverty []
9.1.7 Migration []
9.1.8 Family pressure []
9.1.9 Health problems []
9.1.10 Death of member []
9.1.11 Others (if any) []

9.2 INSTITUTIONAL REASONS:

44
9.2.1 Wrong targeting by Grameen Koota []
9.2.2 Mismatch between member's need and product. []
9.2.3 Higher interest rates []
9.2.4 Time and schedule of meetings []
9.2.5 Delay in approval and disbursement of loans []
9.2.6 Unfavorable terms and conditions []
9.2.7 Leadership problem []
9.2.8 Conflicts with group members []
9.2.9 Lack of mutual trust []
9.2.10 Do not want to share the responsibilities of defaulters []
9.2.11 Lack of proper training []
9.2.12 Misbehavior of the staffs []
9.2.13 Others. []

9.3 SOCIO-ENVIRONMENTAL REASONS:


9.3.1 Drought or any other natural calamity []
9.3.2 Religious influences. []
9.3.3 Expenses because of various ceremonies. []
9.3.4 Class Consciousness if relatives are rich. []
9.3.5 Culture of relief []
9.3.6 Others. []

10 WE CAN CHECK DROPOUTS BY:


10.1

10.2
10.3
10.4
10.5

11 DO YOU FIND ANY PROBLEM WITH THE EXISTING GRAMEEN KOOTA


PRODUCT? YES/NO
IF YES THEN WHAT ARE THOSE
PROBLEMS?.........................................................................................................................
...............................................................................................................................................
........................
12 REMARKS:
...............................................................................................................................................
...............................................................................................................................................
............................................

Annexure 14

45
QUESTIONNAIRE

(STAFFS)

1. NAME:

2. DESIGNATION: 3. BRANCH:

4 DURATION OF SERVICE IN GRAMEEN KOOTA

5 REASONS FOR DROPOUTS


5.1
5.2
5.3
5.4
5.5
6. NUMBER OF CYCLES OF LOAN AFTER WHICH MEMBERS TEND TO
DROPOUT...............
7. DURATION WHEN THERE ARE MORE CASES OF DROPOUTS (IF ANY)

8. WE CAN CHECK DROPOUTS BY:


8.1
8.2
8.3
8.4
8.5

9. THERE SHOULD BE FOLLOWING CHANGES IN THE MODUS OPERANDI


OF GRAMEEN KOOTA IN ORDER TO RETAIN THE MEMBERS.
9.1
9.2
9.3
9.4
9.5

10 I RECOMMEND THESE CHANGES IN THE EXISTING PRODUCTS IN ORDER


TO RETAIN MEMBERS.

10.1 SAVING PRODUCTS


10.1.1 Group Fund Saving
10.1.2 Voluntary Saving
10.1.3 Kendra Fund
10.1.4 Emergency Fund
10.1.5 Collective Responsibility Fund

46
10.2 LOAN PRODUCTS
10.2.1 Income Generation Loan
10.2.2 Supplementary Loan
10.2.3 Welfare Loan
10.2.4 Group Fund Loan
10.2.5 Emergency Loan

10.3 INSURANCE PRODUCTS

REMARKS:
...............................................................................................................................................
...............................................................................................................................................
...............................................................................................................................................
...............

47