Tools and Parameters to

Identify Star Borrowers

Faculty Guide: Prof. P.K. Sen

Shandilya Ankur (24002)

Ralhan Joginder (24049)
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Grameen Koota (As on 30th June 2004)
 No. of Branches 12
 No. of Villages 356
 No. of Kendra's 503
 No. of Members 12,092
 No. of Active Borrowers 9,017
 No. of GK Loans Issued 15,359
 Amt. of GK Loans Issued Rs.78,143,320

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Definition of Star Borrower
 Economic Aspect
A member of Grameen Koota who has
utilised the Grameen Koota Loan in
productive purposes in such a manner that
her assets and income has increased
appreciably to become financially self-
sufficient compared to fellow members.

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 contd…
 Social Aspect
Empowered woman who has a positive
impact on the lives of her family members.

 Grameen Koota’s Aspect

A member who has repaid her loan
instalments regularly and in time over the
previous loan cycles.
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Objective
 An assessment of performance of member in
entrepreneurial activity
 An assessment of economic benefits
accruing in terms of increase in asset base,
improvement in standards of living

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 contd...
 Social impact of Grameen Koota’s Income
Generating loans
 Understanding the process of utilisation of
loans/services so as to identify the
exceptional performers

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Purpose
 Expand outreach and deeper market
penetration among the poor to cover 10% of
Karnataka’s poor household by 2008
 Presently,treating client members as
Homogeneous
 Planning to give incentive to Star Borrowers
 Maintaining intra and inter group equilibrium

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Relevance

 Benchmarking for non-star borrowers

 Expansion of Grameen Koota in near
future
 Motivation to other Kendra members
 Driving Force for Grameen Koota

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Methodology Adopted
 Exploratory Research
(Interaction at Kendra, Branch and H.O. level,
inferences from Grameen Koota literature,Case
studies)
 Testing
(Qualitative and Quantitative aspects)

 Case Studies

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Stages
Week 1 2 3 4 5 6 7

Stages of development
Review of literature X
Field exposure X
Interaction with staff X
Designing of form A X
Area level
(SED)workshop X
Designing of form B X
Pilot testing I of form X X
A&B
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 contd.

Week 1 2 3 4 5 6 7

Stages of development
Revision of form A & B X
Translation in Kannada X
Consultation with COO X
Pilot testing II of form X
A&B
Meeting with Kendra staff X
Writing Case Studies X
Final Tools and parameters X
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Units of Analysis

 Individuals
(criteria for members)
 Enterprise

 Household
(Impact on family members)

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Checklist Proposed

 Checklist A
Initial screening of the members based on
guidelines set by Grameen Koota

 Checklist B
In-depth interviews of the borrowers to
assess her financial and social status

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Checklist A
 Minimum of 4 loan cycles
 Attendance more than 95.00%
 No default in the previous loan utilisation
cycle
 Minimum average voluntary savings
 No Irregularity in the loan repayment
 No Migration
 No Absence without intimation
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Checklist B
 Financial parameter
– Increase in Income
– Annual Savings at the household level
– Increase in assets

 Social parameter

 Status of living
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Increase in Assets

 Land/House
 Animal
 Jewellery
 Movable Asset
 Cash
 SocialAsset(Marriage)
 Other Savings
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Social Parameters
Education of the children
Family Planning
Involvement in the Kendra meetings
Participation in social and political
activities
Insurance
Any other Debt Amount

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Increase in Standard of living

Electricity
Water Supply
Sanitation
Cooking
Home appliances
Annexure

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Weightage

 Increase in Income 25
 Annual Savings 8
 Increase in Assets 32
 Increase in social status 20
 Increase in Standard of living 15
 Total Points 100
 Minimum points to be a star borrower: 45
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Concerns

 Grameen Koota’s lending to Star

Borrower
– Lack of social collateral
– Change in group dynamics
– In tune with existing model…?
– Initial screening will be time consuming

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Recommendations

 Need of a Better MIS

– Attendance record
– Repayment record
 Impact assessment should be done
annually
 Training

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Discussion …

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