PROJECT REPORT ON COMPETETION IN MICROFINANCE MARKET IN THE OPERATIONAL AREA OF HIH SUBMITTED TO

Under the guidance of

P. JOSEPH RAJ
Chief Manager-Operation HAND IN HAND-KANCHEEPURAM

S.P. JAKHANWAL, IAS (Retd.)

Director General-ASRUM

Submitted by Mohammad Azhar

MBA-Rural Management (2010-12) Amity School of Rural Management Amity University Uttar Pradesh

Acknowledgement
In my venture of writing this report, I have a long list of people to thank for their interaction and help. This includes Mr. Joseph Raj (Chief Manager Operation) & Mr. S.P. Jakhanwal (DG, ASRUM), who really helped and mentored for achieving goals and targets of the study. I would also like to thank all those staff of HAND IN HAND Tamil Nadu who helped me in field for arranging meetings with members, group interactions and take care personally. Namely V. Priyasamy (Regional Manager), and his staff Mr. C.Udayaraj (Branch Manager), Ms. Jareena Beevi (Credit Officer), Ms. K.Ramani (Credit Officer), Ms. Arockiamany (Credit Officer), Ms. Syamala (Credit Officer), Ms.T.Uma (Credit Officer),Ms. D.Illamalli (Credit Officer), and Ms. D.Papitha Ponmalar (Branch Manager). Special thanks to all staff of SHG pillars. Personal thanks to Mr. Devaraj, G.Palanivel and my hearty gratitude to Ms. Mohana for arranging travel; K.Thiyagarajan and N.Rathinasekar for arranging delicious food and thanks to all security staff ,drivers and cleaners. Finally, warm thanks to HAND IN HANDTamil Nadu & Amity University Uttar Pradesh for giving an opportunity to work on challenging objectives.

DATE: August 25, 2011 MOHAMMAD AZHAR PLACE: Noida, India

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CERTIFICATE

This is to certify that Mr. Mohammad Azhar, pursuing MBA-Rural management in Amity University-Uttar Pradesh successfully completed six weeks of summer assignment under Global Leaders Internship program with HAND IN HAND INDIA in Tamil Nadu in May June 2011. .

S.P. Jakhanwal Director General-ASRUM Email - spj@amity.edu Phone India - +91-120-4392228

Contacts; Email id; mba.azahar@gmail.com

azhar.amity@gmail.com

Mob; Blog;

+91-(0)9953151810
http://blogs.siliconindia.com/AZHAR

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TABLE OF CONTENTS Acknowledgement--------------------------------------------------------------------------------------(i) Certificate-----------------------------------------------------------------------------------------------(ii) Table of Contents-------------------------------------------------------------------------------------(iii)

1.0. INTRODUCTION-----------------------------------------------------------------------------6-12 1.1. Salient Features of SHGs-------------------------------------------------------------6 1.2. Status of Microfinance in India -----------------------------------------------------7 1.3. Statement of Problems----------------------------------------------------------------8 1.4. Introduction on Client Retention ---------------------------------------------------8 1.5. Research Objectives------------------------------------------------------------------9 1.6. Research Methodology---------------------------------------------------------------9 1.6.1. Research design-----------------------------------------------------9 1.6.2. Selection of Branches, Staff and Respondents----------------10 1.6.3. Duration of the study----------------------------------------------11 1.7.Significance of the study------------------------------------------------------------12 1.8.Limitations of the study--------------------------------------------------------------12 2.0. Introduction about the organization------------------------------------------------------13-18 2.1 Flash progress Report of HIH------------------------------------------------------18 3.0. Penetration of Various Competitors------------------------------------------------------19-33 3.1.Choice of getting loan at the time of needs in villages ------------------------33 3.2.Level of HIH penetration in village----------------------------------------------33 4.0. To assess the factors that help in client retention-------------------------------------34-55 4.1. Why are HIH SHGs inactive? ---------------------------------------------------34 4.2. Why did HIH member migrated to other MFIs or NGOs? -----------------37 4.3.Causes of desertion on HIH--------------------------------------------------------39 4.3.1. Growing competition-----------------------------------------------40 4.3.2. Product adequacy----------------------------------------------------41 4.3.3. Market adequacy----------------------------------------------------41 4.3.4. Regional and economic factor-------------------------------------42 4.3.5. Product image--------------------------------------------------------43 4.3.6. HIH image------------------------------------------------------------44
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4.3.7. Quality of customer service----------------------------------------48 4.3.8. Emotional involvement---------------------------------------------52 4.3.9. Segmentation variables---------------------------------------------52

5. Customer Retention------------------------------------------------------------------------------55-58 6. Against social perspective---------------------------------------------------------------------------57

7. Frame work on Retention Improvement-----------------------------------------------------58-60 8. Response sheet from best SHG Interviews---------------------------------------------------61-68

8.1. 8.2.

Best SHG in Rural area----------------------------------------------------------61 Best SHG in Urban area---------------------------------------------------------65

9. Conclusion----------------------------------------------------------------------------------------------69 10. Annexure-------------------------------------------------------------------------------------------70-75 Annexure 1.0 (Gram Vidyal Loan card)---------------------------------------------------------70 Annexure 1.1 (Mahashemam Loan card)--------------------------------------------------------73 Annexure 1.2 (Samastha Microfinance Loan card)--------------------------------------------75 References-------------------------------------------------------------------------------------------76 11. Opportunity with HIH--------------------------------------------------------------------------------76 12. Suggestions page--------------------------------------------------------------------------------------77 13. Reader comments-------------------------------------------------------------------------------------78

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1.0.INTRODUCTION Jesus says: man cannot live by the bread alone. Abraham says man lives by bread alone when there is no bread. If a person is starving only food occupies his mind. He needs the bread. It may be not enough he needs many more things, but that many more things come only later on; first comes the bread. It is but natural that as soon as one need is satisfied, a second need becomes apparent. The person forgets that he or she was starving and now starts to be concerned about a need which was formerly of less significance. People are never completely satisfied on any need level, but a reasonable amount of gratification of first priority needs man be forthcoming if they are to perceive a lower priority need. However, it has to be noted that the primary goal of both poverty lending approach and financial systems approach is providing financial services to the poor people.
A poor person has not known what riches are, he is not frustrated. How can he go beyond riches if he is not frustrated with them? A poor man also sometimes comes to me, but then he comes to me for something that I cannot supply. HE ASKS FOR SUCCESS.

(Rajneesh: The Guru of Self-help Movement)* What is Microfinance? The Microcredit Summit 2007*** defines microcredit as the extension of small loans to entrepreneurs too poor to qualify for traditional bank loan. It has proven as an effective and popular measure in the ongoing struggles against poverty, enabling those without access to lending institutions to borrow at affordable interest rates and start small business. The key implication of microcredit is in its name itself micro. A number of issues come to mind when micro is considered: The small size of loans, small size of savings, the smaller frequency of loans, shorter repayment periods and amounts, the micro/local level of activities, the communitybased proximity of microcredit, etc. The Bangladesh experience has shown that programmes that empower women at the bottom can make a real difference to the quality of life of the poor even under conditions of mass deprivation. This is reflected in the steady progress front. In a way, this represents a culmination of the growing recognition of micro-credit as an instrument of poverty alleviation, the world over. Thirty years ago, the concept of micro-credit was unknown. Since then, its role in poverty alleviation and empowerment of the weaker sections has gained recognition in many developing countries and even in a few developed ones. Today, it is active in more than 100 countries and is said to have helped more than 125 million people take their steps to reduce poverty.** The biggest challenge to any civilized society is the economic deprivation of its bucolic part. The most potent tool against human deprivation is building human capital among the deprived, through the sustainable development initiative which is taken by the deprived themselves. Selfrealization and self initiative are the two most powerful weapons to wash poverty from the world map this dynamic quotation of worlds greatest economist Chanakya was translated to one word that is SHG.***
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1.1. Salient Features of SHGs: 1. It is a homogeneous group of people of similar economic status and interest and an affinity group. 2. It is small in size and membership of one SHG is in the range from 10-20 people. 3. Non-political and voluntary and follows democratic culture. 4. SHGs have the transparency among themselves and they have the collective accountability of financial transaction in the group. Mohammad Yunus (2004) stated that loners from the experience of other developing countries like Bangladesh, Indonesia, Bolivia and Philippines motivated India too to start experiencing innovative scheme of SHGs which are also called as thrift and credit groups http://www.asienkunde.de/content/zeitschrift_asien/archiv/pdf/Schrader94.pdf. The SHG is a brain child of Grameen Bank of Bangladesh which was founded by Prof. Mohammad Yunus of Chittagong University in the year 1975. In India NABARD initiated it in 1986-87, but the perceptible progress was made after 1991-92 from the linkage of SHGs with the banks. Of late, some of the leading commercial banks such as ICICI bank, HDFC bank, UTI bank and the State Bank of India, have begun focusing on this sector rather aggressively, may be, under the pressure from the RBI and governments. Even some of the multinational banks operating in India, such as ABN Amro, Standard Chartered, HSBC and Citi- bank, have moved into the sector. Not to be outdone, the old generation banks located in south India, particularly Kerala based, Dhanalakshmi Bank have taken a great stride in meeting the aspirations of the poor and have carried the mantle of microfinance across the state of Kerala. In Tamil Nadu, Indian Bank plays a very vital role in financing SHGs. 1.2. Status of Microfinance in India. India has one of the largest networks of bank branches in the world, but the hundreds of millions of poor in the country are largely out of it. Banks were nationalized three and half decades ago with the hope and promise that their products and services would reach the poor. But that goal is not even close to being met today with 52,000 commercial bank branches, 14,522 branches of Regional rural banks and 1, 00,000 Cooperative bank branches. The country is teaming with institutions that should be able to meet the credit needs of the people. But if you are poor, you are also probably out of luck with the banks; it is tough persuading them to ever let you open a bank account. The consequences have been devastating. Consider these numbers; 75 million households in India depend on moneylenders to meet financial needs; almost 90% of people in rural India have no access to insurance; 50 million households are landless and need small credit to start some economic activity. And even families earning Rs 5000-6000 a month in urban areas spends huge portions of their earnings to service their never ending debt.*****

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But out of necessity and enterprise, those located out of the banking world have found a way out. It is called microfinance- the enterprise of small loans to individuals who are too poor to qualify for traditional bank loans, as they have no assets to be offered as guarantee. In India microfinance has been working largely through SHGs. Predominated by women, these are formed with simple rules---save, accumulate and give loans to each other and also get loans from financial institutions. Indias demand for microfinance is Rs.500 billion, and only Rs.31 billion of this amount has been generated so far; these is still a long way to go. Nearly 7.5 million poor households in India desperately want access to financial services to meet immediate needs. Almost 36% of the countrys rural households have to look for credit outside the formal sector. A World Bank study of over 6000 families in Andhra Pradesh and Uttar Pradesh, two of Indias largest states, shows that 87% of them have no access to credit, 85% had no access to insurance and 56% borrow from moneylenders. For addressing this problem NABARD and lot of NBFCs, NGOs, and voluntary organization come to address it.****** Top NBFCs in India are as under:
SKS Microfinance Ltd (SKSMPL) Spandana Sphoorty Financial Ltd (SSFL) Bandhan Grama Vidiyal Micro Finance Pvt Ltd (GVMFL)

Top NGOs in India are as under:

HAND IN HAND Tamil Nadu MIMO Microfinance Dehradun PRADAN

1.3. Statement of Problem Excessive competition in market creates multiple borrowing, huge cash flow, over dues, excess pressure on members to repay loan, wrong practices in lending money and making over SHGs groups are mainly causes of competition in between microfinance companies. Unfortunately the microfinance industry is losing customers, mainly as a result of the MFIs approach and strategies. In many cases focus on credit sale, expansive marketing and bottom line results loses customer preferences. In Microfinance, credit is only a means to satisfy their goals and not an end in and of it. 1.4. Introduction on Client Retention The study of client retention provides insight into how to improve products and services offered to the targeted market by developing effective retention programs and consequently creating long term relationships between MFIs and their clients. But why is relation so important? It is not only because retaining a customer is less expensive than acquiring a new one or because of the necessity of retaining customer until they are profitable? Rather, client retention is improved because it is a value generation strategy for the MFI; that is the MFIs value is not only related to bottom line of its financial statements but also to the present value of its future revenues. Guaranteeing the MFIs future revenues greatly depends upon strengthening its customers loyalty. For this reason, two MFIs with the same number of customers may have different revenue-streams. As such, customer retention is not only necessary for MFI sustainability but it is also a value generation strategy of the organization and shareholders.

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1.5. Research Objectives: The objectives of the study given by organization are: 1. To determine the level of penetration of various competitors in the study area. 2. To assess the main factors that help in client retention. 3. To identify the problems that excessive competition may lead to like multiple borrowing, over indebtedness. 4. To identify the unmet needs of clients. 5. To suggest strategies to retain and increase current client base/market share.

1.6. Research Methodology; Components of research methodology used in the present study are given below:

1.6.1. Research Design Desk research It was undertaken to explore the current status of international microfinance market and also to collect information about technologies available for client retention. Desk research aims at searching for information from the available sources such as press, internet, analytical reports, and statistical publications. Observation It was undertaken to know the study area, culture of study area, time table of village respondents, suitability of urban respondent, COs availability etc. Prepare questionnaire Four type of questionnaire prepared for HIH staff members, three year old HIH SHGs, migrated drop out, inactive, dysfunction SHG of HIH and other MFIs members. Personal interviews It was for three year old SHGs and dropout members, personal interview of staff as well as some other NGOs founder. Group discussions This was adopted for knowing common problem of three year old SHG members. Hypothesis tested: Does training help in client retention?

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1.6.2 Selection of Branches, Staff and Respondents The following three branches were selected in Kanchipuram district of Tamil Nadu to receive the response of clients: Table-1 Branch selected for research S.V Chatram Chinna Kanchipuram St. Thomas Mount

Category of Respondents
3- year old SHGs members covered (Nos) 20 Migrated, Dropout & Inactive covered (Nos) 10 Other MFI members covered (Nos) 7 Total respondent selected for research (Nos) 37

S.V CHATRAM

CHINNA KAANCHIPURAM

20

20

45

St. THOMAS MOUNT 20 (CHENNAI)

20

10

50

TOTAL

60

50

22

132

Source- field survey Internship period 16th May 24th June 2011 (6-Weeks)

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The following categories of staff were selected for responding:Table-2 DESIGNATION Credit Officer Branch Accountant STAFF TOTAL RESPONDENTS 13 2 TOTAL COVERED 13 2

Branch Manager 4 4 Regional Manager 2 2 Chief Operating Officer 1 1 Training Department 3 3 Chief Manager 1 1 Legal Advisor 1 1 Credit Monitoring Manager 1 1 Management Information 1 1 Department HR Manager 1 1 Project Developer 1 1 HO 1 1 TOTAL 32 32 nd th Note: - On 2 & 6 June 2011, gave midterm presentation in Kanchipuram head office. Note: - May 23rd, 24th, 25th & 26th 2011 I observed field, members and did some auditing work on field with my mentor. Started field work on 27th with translator and one field staff like Credit Officer, Branch managers etc. 1 We started field work from (27-05-11) 2 Total fifteen day we worked on field. 3 Total 164 respondent covered. [Members+Staff] 4 Average 11 respondents covered per day. 5 Last four days we spend in making report. Note: - Taken interview of VEED NGO founder at her home. 1.6.3. Duration of the study The period of study was from 16th May 2011 to 24th June 2011.

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1.7

Significant of the study

This study would be helpful to HIH to adopt new strategy (see page no.40-57) in working area. This study also brings out the level of penetration of other MFIs, NGOs and other individual lenders with impact in working area. This study also helps to develop new MIS and monitoring system because in this report mainly focuses on problems of clients and critical evaluation of these problems. The hypothesis shows the importance of training and internal loan in working area because this report is totally based on primary data. The suggestions are made on the basis of market needs.

1.8. Limitations of the Study; Time was not enough for working and making report. Only three branches selected for field study. Small number of respondents chosen because of time limitation.

References *Microfinance redefining the future book written by V.S. Somanath and published by Excel publication in 2009.
**Sam Dalley- Haris (2007) State of the Micro Credit Summit Campaign Report 2007 ***Microfinance through SHGs: A Boon for the Rural Poor a research paper written by Rimjhim Mousumi Das and published by DEEP & DEEP Publications Pvt. Ltd. in 2009.

****Microfinance redefining the future book written by V.S. Somanath and published by Excel publication in
2009

*****Microfinance redefining the future book written by V.S. Somanath and published by Excel publication in
2009.

******Microfinance redefining the future book written by V.S. Somanath and published by Excel publication in
2009.

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2.0 HAND IN HAND in brief (as in the organizations MOA) Hand-in-Hand is a Public Charitable Trust registered in the year 2002 with an initial focus on education and the elimination of child labor. HIH worked for economic and social empowerment of women and thus of society by creating enterprises and job. In 2005 more than 115,000 women have been organized into, over 7,336 SHGs in 5 district of Tamil Nadu.* It is recalled that year 2005 was observed as the International Microfinance Year (IMY) with the objective of eliminating poverty by creating enterprises and jobs. Objective To eliminate poverty by creating enterprises and jobs. Vision To alleviate poverty through job creation and integrated community development. Mission To work for the economic and social empowerment of women, and thus of society, by creating enterprises and jobs. To follow with this an integrated development programmed that creates sustainable communities. Five year goal ending 2013-14 To create 1.3 million jobs. Strategy adopted to fulfil objective Introduce five-pillar activities for holistic development of poor people especially women. This five-pillar activity is follow: 1. Job creation 2. Education 3. Health 4. Environment 5. Citizen centers. Apart from these five pillar activities, HIH has village uplift program. Out of these five only jobs creation is discussed below because during my research I worked with SHG-pillar, mainly focus on Job creation. Job creation HIH is the only NGO in Tamil Nadu to create job with follow up and take care of SHG members. HIH provides training to all its members the most famous training by HIH is skill training like computer class, tailoring, glass paintings, embroiling and many more. Through training women learn accounting, saving, borrowing & group coordination etc.

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Microfinance In Tamil Nadu, HIH one of the biggest NGO which provide loan on lowest interest rate and because of this International Financial Cooperation (IFC)*** invests more in Hand in Hand. HIH lend to only women and ensures that the loan is used only for investment and creating enterprises, not for consumption. HIH five-pillar model has been successfully replicated in South Africa, Afghanistan and Brazil. Encouraged by these success stories, Prof. Kasturi Rangan, a leading academic at Harvard Business School, who also chairs the HBS-ACCION microfinance program is leading a course on HAND IN HAND Social Entrepreneurship Program on the pattern of HBS. Village Uplift Program (VUP)**** The Village Uplift Programmed is an integrated project in which HIH has adopted all five - pillar program simultaneously in one village. Each village is supported by one exclusive donor, who adopts the village for two years for $ 35000. The village uplift program symbolizes practical application of HIH integrated development approach in one village at a time.

Note: Up to June 2011 more than 674,432 women have been organized into over 46,923 SHGs in Tamil Nadu.*****

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HIH growth and global presence Public Charitable Trust. Registered in the year 2002. Focus on child labor elimination, education, and the empowerment of women. Kalpana Shankar is Chief Executive Officer for HIH. In India, HIH currently active in 17 districts in Tamil Nadu, 6 districts in Madhya Pradesh, 3 in Karnataka, Orissa, Maharashtra, as well as in the Union Territory of Pondicherry. Hand in Hand is also a consultant for the Inter American Development Bank and a partner with World Vision.

HIH Growth
http://www.hihindia.org/handinhand/facts_and_figures/annual_report/ Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Women organized

10,000

115,000

206,664

304,000

450,000

609,027

6,74,732

SHGs

500

7336

13,962

21,184

42,169

46,923

New Enterprises

300

60,779

161,000

248,000

539,094

685,316

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Overall Growth up to July 2011 Jobs created through SHGs 801,842 Child - Friendly Panchayats 798 NRM Projects 14 Medical camps held - 1913 Camp beneficiaries - 178,860 Children enrolled in the school - 97,280 Village Upliftment Programs 64 Waste collection (house hold) - 219,580 Trained in Job Oriented IT 5,458 Total number of CCEs - 2,883

HIH Global Presence

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2.1.

Flash progress report of HIH**

Resource *http://www.hihindia.org/handinhand/facts_and_figures/reports/annual_report_2005-2006/
**http://www.hihindia.org/handinhand/facts_and_figures/annual_report/ ***http://www.indiaprwire.com/pressrelease/financial-services/2009111237457.htm ****http://www.hihinternational.org/what-we-do/programmes/village-uplift-programme/ *****http://www.hihindia.org/handinhand/facts_and_figures/monthly_report/

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3.0 Penetration of various competitors:

In project area different types of MFIs are working with full potential. These all are in the form of Non Government Organizations (NGO) as well as Non Banking Financial Companies (NBFC). NGOs & NBFCs were studied in three categories. Semi-urban NGO (1) + NBFC (5) = 6 Urban area NGO (2) + NBFC (5) = 7 Rural area NBFC (4) = 4

Semi-urban: In this area mainly one NGOs and five NBFCs are working with different
attractive strategies. The details of these MFIs are mentioned below: -

Ragini NGO.
Average group size Training Product ------15 No loan (Only bank linkage) Credit Officer Meetings Group coordination Loan period --------One man NGO Twice in a month Very strong First loan is provided after six month and next loan after the repayment of first loan Installment Average Interest rate Document charges Member getting loan Money collection Internal savings ------------Monthly Depend on Bank Rs.1500-Rs.2500 per SHG All members of SHG getting equally By SHG leader Rs.100 per member SHG per month

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Findings: - Total 180 SHGs are with Ragini NGO in CHENNA KAANCHIPURAM area. Members join this NGO because of lower interest rate; easy maintenance of books of accounts and not forcing anyone to attend meetings. This NGO provides loan to its members through Central Cooperative Bank. Group gets Rs.60,000+Rs.1,00,000+Rs.2,00,000 in four and half years. The most attractive strategy in Ragini which is missing in HIH is that all loans are distributed equally to all members. Members of this group indulge in multiple borrowing because of huge demand in market, as respect of demand they borrow loan from Gram Vidyal and paid Rs. 270 per week installment for 50 weeks on Rs 10,000 to Gram Vidyal.

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Bandhan (NBFC)
Group size Training Loan size Credit Officer Meetings Group coordination Loan period --------------Depend on member availability No loan up to Rs 20,000 minimum is Rs 6,000 Only for collection money No No, very weak 50 weeks, and depend on suitability of Borrowers or loan will provide after completion of first loan Installment Interest rate ----Weekly Rs.(225+25)* on Rs 10,000 25%

Document charge Member getting loan Money collection Internal savings

---------

Yes, taken but not clarify All member getting loan By COs No

Findings: - Majority of members in this group is above 60 years of age & they all are having self enterprises. Bandhan has no restriction on age in giving loan. It gives loans to those members who already have enterprise. Bandhan attracts borrowers by adopting following strategy if you repay Rs 10,000 within 10 weeks then we shall give Rs 6,000 on weekly installments of Rs. (132+18) installment for 50 weeks. Bandhan give up to Rs 15,000 to its SHGs for education purpose. In CHENNA KAANCHEEPURAM 5% of borrowers belongs to Bandhan Microfinance. * Rs. (225+25) in this Rs. 25 is security money which will be given back to borrowers after completion of loan.

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Gram Vidyal (NBFC)

Group size Training Loan size COs Meetings Group coordination Loan period --------------15-20 yes, depend on member demand loan up to Rs.25,000 minimum is Rs. 9,000 Only for collection money No No, very weak 50 weeks, and depends on suitability of Borrowers or loan will provide after completion of first loan Installment Interest rate Document charge Member getting loan Money collection Internal savings ------------Weekly Rs.225 on Rs.9,000 approximately 18% Rs.500 on Rs.9000 All member getting loan By Credit Officer (CO) No

Findings: - Gram Vidyal provide social services to their client and in every 10th week provision to less Rs.9 from interest, one of the most positive points of Gram Vidyal is that, not charging any money in the name of security. GV has provision to give Rs.12,000 to their members as education loan. For attracting borrowers GV approach members by giving extra loan if you repaid Rs.9,000 in 10 weeks then GV gives Rs.3000 for 20 weeks on the installment of Rs.75 per week. GV target those borrowers who already have small enterprises and those who willing to start new small enterprises. Members like GV because of easy suitability of getting loan and no force to attend meetings. In CHENNA KANCHIPURAM lot of members having loan by GV, approximately 20% of total borrowers in particular area. 20%-30% HIH members having loan from GV (Gram Vidyal). Note: For Gram Vidyal loan card see annexure 1.0.
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Mahashemam (NBFC)
Group size Training Loan size COs Meetings Group coordination Loan period --------------Up to 30 No loan up to Rs.25,000 minimum is Rs.10,000 Only for collection money No very strong 50 weeks, and depend on suitability of Borrowers or Loan will provide after completion of first loan Installment Interest rate Document charge Member getting loan Money collection Internal savings ------------Weekly Rs.459 on Rs.20,000 approximately 18% Rs.1000 on Rs.20,000 All member getting loan By COs No

Findings: - In every 5 week provision is to reduce Rs.5 from interest and collect Rs.10 with weekly installment for insurance. Mahashemam said to borrowers that we will give back insurance amount to members after cylinder or dysfunction of groups. They charge Rs.1 every week in the name of trust. The maximum members of Mahashemam are not indulging in multiple borrowing because Mahashemam take care of customer needs. As compare to others MFIs Mahashemam members having less overdue in group because of good group coordination and selection of members. All members of this group have enterprises like Embroiling and grocery, fruit, flower shops. Approximately 5%-10% borrowers belong to Mahashemam Microfinance from total borrowers of this particular area. Approximately 20% of HIH borrowers have loan from this NBFC in this particular area. Note: For Mahashemam loan card see annexure 1.1
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Ashirwaad (NBFC): - On Rs.10,000 Ashirwaad charge Rs.560 for document procedure and
take weekly installment of Rs.225 for 50 weeks.

Samastha Microfinance an NBFC: - On Rs.15000 they charge Rs.500 to Rs.700 for

document procedure and charge 13% interest on loan amount. Overall view of semi urban area: The impact of HIH in semi urban area is very strong. However, heavy demand of loans, wrong selection of clients, lack of HIH awareness in SHGs and undue emphasis on attending meetings/training are main causes of borrowers joining other MFIs. Borrowers general perception is that these organizations are liberal than HIH in the requirement of training and meetings. Chart-1.0

Peneteration of MFI's in Semi-Urban areas

HIH GRAM VIDYAL MAHASHEMAM BANDHAN Others

HIH- 55%. Gram Vidyal-21% Mahashemam- 9% Bandhan- 8% and Others-7%

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Urban: - In project area different type of MFIs working with full potential. These all are in
form of NGOs as well as NBFCs. In urban area mainly two NGOs & five NBFCs working with different attractive strategies. The full details of these MFIs are mention below.

Swathi Vaazga Valamudan Welfare Association (P. Leelavathi) (NGO)

Group size Total SHGs Training Product Different in loan period Meetings Group coordination Loan period Installment Interest rate Document charge Member getting loan Money collection Internal savings --------15 400 Yes, on demand mainly skill training loan through Bank linkage

--- In 2008 Rs.1.5L, in 2009 Rs.3L, in 2011 Rs.4.5L ----------------Monthly one meeting (80% attendances) Very strong (only one SHG dysfunction) Depend on loan amount and bank Monthly depends on bank 2% on loan amount All members getting loan By leader & representatives

--- Yes, strongly believe on this Rs. 110 per month

Findings: - This is a one man NGO managed by P. Leelavati (founder) and her daughter. Total 400 SHGs are managed by this NGO mainly in Kanchipuram and St. Thomas Mount. Members like to join because of lower interest rate, cooperative style of P.Leelawati, only one meeting in a month, P.Leelavatis helping nature, more emphasis on internal savings and segmentation. At the time of migration, death or late repayment, the responsibility of clearing overdue falls on the shoulders of all members not only on the group leader. It adopts strategy to provide small loan of Rs.4000 to each of 15 members at initial level for learning how to manage? At initial level P.Leelavati focuses on learning, group coordination, increasing internal savings, leadership and book maintaining.

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NWTWS (NGO)

Group size Total SHGs Training Product Different in loan period Meetings Group coordination Loan period Installment Interest rate Document charge Member getting loan Money collection Internal savings

-----------------------------

12 - 15 More than 200 No loan through Bank linkage In 2009 amid get Rs.1.5L, in 2011 get Rs.4.5L Every Sunday Very strong Depends on loan amount and bank Monthly depends on bank 2% on loan amount All members getting loan By leader & representatives Yes, strong commitment, Rs. 210 per month

Findings: - Through bank linkage, members get more loans from bank and equally distribute amongst all members. The most noticeable part of this organization is that members have adequate knowledge about NWTWS, majority of group members go to branch office weekly. Internal savings are one of the strong reasons for group coordination. Because of this they accumulate and deposit large amounts of money in Bank and distribute to every members on the basis of priority. Members recieve internal loan up to Rs.5000 in a month. According to members of NWTWS, staff did not charge any fees or bribe. Credit Officers attends meetings regularly.

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Mahashemam (NBFC)
Group size Training Loan size COs Meetings Group coordination Loan period --------------Up to 50 No Loan up to Rs 25,000 minimum is Rs. 5,000 Only for collection money No very strong 50 weeks, and depends on suitability of Borrowers or Loan will provide after completion of first loan Installment Interest rate Document charge ------Weekly Rs 459 on Rs 20,000 approximately 18% Rs.1000 on Rs. 20,000, Rs. 700 on 10,000 Rs.380 on Rs. 5,000 Member getting loan Money collection Internal savings ------All member getting loan By COs No

Findings: - Members like lending process and after the death of husband member get Rs. 2000. Every year give Sari & Calendar to members and provide scholarship to those members childrens who hold first position in board exam (Rs. 5,000), second position (Rs. 3,000) and third position (Rs. 2,000). In every 5 week the provision is to reduce Rs.5 from interest and collects Rs.10 every week for insurance and said give back insurance amount to all members after cylinder or dysfunction of group. Mahashemam charge Rs.1 on the behalf of trust. HIH should be consider How Mahashemam retain his client? Mahashemam retain clients through business of take care of his client needs. No overdue in group because of good group cooperation and selection of members at the time of building SHGs. All members of this group have small enterprises. Approximately 15%20% is Mahashemam borrowers from total borrowers of this particular area. Approximately 20% of HIH borrowers have loan from this MFI in this particular area.

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Gram Vidyal (NBFC)

Group size Training Loan size Credit officer Meetings Group coordination Loan period

---------------

Up to 25 Yes, on demand. Handloom, bag and tailoring Loan up to Rs 25,000 minimum is Rs. 75, 00 Only for collection money No Moderator 50 weeks, and depend on suitability of Borrowers or Loan will provide after completion of first loan

Installment Interest rate Document charge Member getting loan Money collection Internal savings

-------------

Weekly Rs 250 on Rs 10,000 approximately 18% Rs. 570 on Rs. 10,000 All member getting loan On Saturday in home By COs No

Findings: - On the loan lending day all borrowers get day meal in office. Members get loan in the order Rs.75, 00+10,000+10,000+25,000 in one year by GV. Majority borrowers of GV are micro entrepreneur and they have flower shops, Tiffin, Vegetable shops and Sari business. GV loan disbursement strategies are on the basis of need and requirement of borrowers. GV always confirmed that borrowers have ability to repay the loan amount or not, when GV satisfied then they continually provide loan up to Rs.25000. More than 50 active groups of GV in St. Thomas Mount but majority are not satisfied.

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Equitas (NBFC)

Group size Training Loan size COs Meetings Group coordination Loan period

---------------

Up to 20 No Loan up to Rs 20,000 minimum is Rs.10, 000 Only for collection money No moderator After two year and depend on suitability of Borrowers or Loan will provide after completion of first loan

Installment Interest rate Document charge Member getting loan Money collection Internal savings

-------------

48 times, half monthly Rs 400 on Rs 15,000 approximately 28% Rs. 250 on Rs. 15,000 All member getting loan In home By COs No

Findings: - Equitas is an MFI, charge highest interest rate in Tamil Nadu. Equitas members get loan in order to Rs.10,000, Rs.15, 000 and Rs.20, 000 in one year. Its target members are not poor. Equitas provide money to those persons who already have a self micro business. In urban area people need more money because they have good earning and thats why borrowers do not worry on interest rates. One misunderstanding is in between borrowers that Equitas charge 10% of interest but in actual they approximately charge 28%. How Equitas approach it should be consider for HIH.
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Overall view of urban area: More than 25 MFIs actively working in urban area in this some NGOs provide only bank linkages and some are provide only self credit amount. HIH is far better than these NBFCs & NGOs by providing both with credit plus activity. Heavy demand of loan and enterprise size attracts MFIs in urban area. Urban client did not want any training and credit plus activity, this is the main reason behind to inter all MFIs in urban area because operational cost is less. They demand only money and market linkage. The regional economy depend on Sari business, vegetable shop, flower shop, hand looming, leather product, perfume cover, show ribbon, tailoring, fish merchant, Tiffin business & ice-cream shop. Chart-1.1

Share of MFI's
HIH GRAM VIDYAL MAHASHEMAM EQUITAS Others

In urban area mainly in St. Thomas Mount Mahashemam impact is very strong. People are attracted towards Mahashemam because they give gifts and scholarship to their group members. They target the psychology of the borrowers, maximum borrowers attract because of its loan installment process. In the case of Gram Vidyal; good loan size, easily availability of loan and no interest in last week on capital attract borrowers. Provision of insurance is also one of the strategies in making sound brand of products by NBFCs. HIH impact in urban area is good. The only reason to take loan from other companies is excessive demands of loan, lack of awareness about HIH and gap between first loans to second loan. In urban area 50% of total borrowers belong to HIH, in this 30%-40% members involve in multiple borrowing. The most interesting part is multiple borrowers have full trust on HIH. They all are not like other MFIs because of high interest but high demand of money and for survival in the market attracts members to borrow loan from other MFI.
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Rural
In project area different types of NGO & MFI play role as a lender. In village ASEFA, FFASL Ashirvadam, & Mahashemam working with different attractive strategies which is mention below:

ASEFA
Group size Training Product COs Meetings Group coordination Loan period Installment ------Up to 20 Provide to good SHGs & on demand Bank loan, group loan & individual loan

--- Different COs for individual loan & group loan --Monthly once (member not attended)

--- Moderator (One SHG inactive out of total two) ----After completion of loan Monthly for group loan & weekly for Individual loan

Interest rate Document charge Member getting loan Money collection office Internal savings

--- On 10,000 they provide 9,500 and charge 12.5% ------Rs. 30-200 on Rs. 10,000 All member getting loan Leader collects and pays in

---

Yes, Rs. 100 per month

Findings: - Members attract towards ASEFA because it provide both group loan and individual loan in the same time period. ASEFA still in this area because of its group leader. Group leader and group members knows staff with name, it shows staff actively involved in group. Group loan distributed equally among all members. ASEFA approach group members to join training but member did not like to go for training because of good enterprises. Reason for continue: - Members replied that, ASEFA did not force to attend meeting and in other hand HIH force to attend all meetings. According to leader we know ASEFA charge more rate of interest but we all are not worry about rate of interest because we all are having good earning. Note: - Total 14 SHG of HIH and only one SHG of ASEFA in particular area.
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Ashirvadam
On Rs.10,000 they charge Rs.160 as document procedure and take Rs.960 as weekly installment. Overall interest is 16.8%.

FFASL:
On Rs.10,000 they charge Rs.1000 as security and adopt weekly installment payment system. 12.5% interest rate charge on 10,000 except security.

Mahashemam: On Rs.10,000 they charge Rs.700 as document procedure and have 50 week
installment payment system. They charge Rs.15,00 interests on Rs.10, 000. Note: Kaveri Finance also active in village area of Kaancheepuram. Overall view of rural area: - In rural area HIH impact & image is very strong but because of less awareness and more demand especially education loan, people like to borrow loan from other MFI. Chart-1.3

Share of other MFI

HIH AHRUWALI ASEFA MAHASHEMAM Others

Ahruwali (the State Government initiative scheme) having good impact in rural area. People believe on this scheme but lack of follow up create members migration to other MFI and mostly members are joined or willing to join HIH. In the name of competition no MFI exist in rural area. Members borrow loan from other MFI just because of buying cow and for submitting education fees.
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3.1. Choice of getting loan at the time of needs in the villages (three year old SHG)
Jewel loan Individual loan Other MFI loan Internal loan Bank Member know other MFI ------------6% 40% 3% 99% 10% 30%

Reason: -Borrowers bound to take loan because of children education, marriage, medical, maintenance of house etc. Note: - Government allotted houses in rural area is not in good condition. In every year at the time of rainy season borrowers invest more in house maintenance. Impact: - Multiple borrowing increases, overdue in between group members, pressure of excess loan and group coordination. Internal loan demand increases because of paying overdue and this is the main reason for group inactive.

3.2. Level of HIH penetration in village

% of three year old SHG members know HIH vision & mission % of Staff know HIH mission & vision % of three year old SHG members know about product of HIH % of three year old SHG members went to branch office --------60% 50% 65% 70%

Findings: - Majority of respondent belong to 5 year old SHG but 40% are totally unknown about HIH vision & mission and other side HIH staff statement was we discuss mission and vision in every group meeting. Only Credit Officers going to attend group meetings and other hand only 40% of Credit Officers know exactly HIH mission & vision. At the time of interview with some staff members use dairy to reply HIH mission & vision. HIH is famous for its products and social services but this is also one of the fact is that 35% of three year old SHG members did not know about HIH all products. If we talk about social services then only 40% of three year old SHG members know HIH social services. One of the main reasons of dysfunction SHGs is Credit Officer resignation and after Credit Officer resignation particular SHG members face problem in running SHGs. This problem exist because of members are unknown the address of branch offices and staff names. In this point of view 30% members did not visit branch office.
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4.0 To assess the factors that help in client retention

Causes of desertion of the HIH can be categorized in five groups, which in combination determine customer satisfaction levels:

Satisfaction with the product Quality of customer service HIH image Emotional involvement and The profile of customer.

Careful analysis of each of these factors reveals major dissatisfaction with product features. Quality of customer service is a complementary source of dissatisfaction, but to a lesser extent, emotional connection the customer possesses with the HIH mitigates most weaknesses in customer services. Competition and the pressure of growth goals make the HIH define a broader market and develop more credit products, with little differentiation among them, diluting its market focus and complicating the administration with limited retention results. Similarly, HIH emphasizes improving customer service, to gain a competitive edge; yet, this does not necessarily diminish attrition, given the limited window the HIH has for innovation.

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4.1. Why HIH SHGs are inactive? Some of the important reasons are: Multiple borrowing; SHG members migrating to any other area; SHG members leave the place after borrowing HIH loan; SHG members leave the area after borrowing internal loan; After leaving members from SHG all responsibility is on leader; Loan amount is not distributed equally; Out of 12-15 group members only nine members get first Grameen loan; Members have overdue; Lack of leadership quality group; Leaders and representatives do not rotate their position in group ; Lack of group coordination; Leaders and representative get more internal loan; In maximum cases leader and representative of a group get first loan, second loan& third loan; loan size; Illiteracy among members; Marriage of leaders and representatives; When SHGs Leader getting better job; Problem not solved in meetings and Meetings are not arranged properly.

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Findings: - Multiple borrowing is the main cause of dysfunction in SHGs. In urban areas borrowers do not want huge amount of money in one installment, they want amount in a few installments. For example; a borrower has an ice-cream shop. In Tamil Nadu demand of ice-cream depends on seasons (consumption rate of ice-cream is high in May and June) So, in the month of March demand of loan is almost nil but in April it increases, in May demand increases further, June is the peak month for ice-cream business so the shop keepers want loan to fulfill the demand and this is the time to earn more. Migration of SHG members is one of the main causes of SHGs becoming inactive. Sometimes members migrate from one place to another because of her husbands job, relatives call, members marriage, family migration, and for sons or daughters education etc; after migration the whole calculation of internal savings and the loan amount is affected negatively. If leaders and representatives migrate, probability for group becoming inactive is very high. 99% chance to group will become inactive when members leave the place after getting loan. In this condition all responsibility would come on the shoulder of leaders. Leader is only member who has to pay all over dues of migrated members. Group coordination or less coordination is also one of the major factors which force group to become inactive at the time of loan distribution. Main reason in lacking group coordination is HIH not providing loan to all members. Leaders & Representatives want to tag more loans. So, the ego problems between them creates problem in group coordination. Illiteracy is one of the major problem in all SHGs, most of the SHGs are inactive because of only one member is educated in the group; and when she dies, migrates, gets job or because of any other reason she leaves the group, then the whole group becomes inactive. All information and calculation will go with migrated member who manages all books of account. Uneducated SHG members are totally blank about their internal savings & how much they get bank loan or HIH loan. Problems of group member are not sorted out easily because of improper arrangement of meetings. Members have problem like 1) overdue, 2) who will be going to branch office to pay installment? 3) Internal loan distribution and; 4) Book keeping. Because of these four problems lot of SHGs deactivate. Last and valid reason of group becoming inactive is:Credit Officers resignation or non availability of Credit Officers.

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4.2. Why HIH members migrated to other MFIs or NGOs? Inadequate loan size from HIH; Delay in providing loan; Demand of money; For education loan; Wrong selection of members; Monthly installments; Misunderstanding between members at the time of loan distribution; Multiple borrowing by clients; When groups called inactive, then inactive group members migrate to borrow loan; In HIH, members gets Grameen loan after six month of joining not on emergency time; HIH inspect that member start business or not and Members did not get services and training. After area migration, all responsibility of overdue comes on the leader shoulder. Findings: - The main reason of migration is loan size; near about 70% of weightage of all problems is loan size of HIH. In urban area borrowers want current loan because they have daily business activity and they earn on the basis of daily business thats why borrowers choose other MFIs because maximum of NBFCs provide loan on current demand and on weekly payment of installment. The time gap between HIH first loan to second loan also affects borrowers. For example: a borrower having tea business (supplies tea in offices) and her daily expense in making tea is Rs.1,000 means Rs.26,000 is the total expenditure in a month. In tea business borrowers get money from offices in the form of cheque at the end of every month. In this situation borrowers need to get urgent loan and this time Gram Vidyal, Mahashemam & Equitas stand outside the doors of borrowers with money. Majority of members in villages work on daily basis that is why they refer to pay weekly payment.

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Overall view of 4.1 &4.2 Four major reasons behind HIH SHGs being inactive are (a) Lack in group coordination, (b) Migration of members, (c) Illiteracy among group members and delay in loan disbursement. Graph-1.0
45 40 35 30 25 20 15 10 5 0 Group cordination Members migration Illiteracy loan delay Group coordination Members migrated illiteracy loan delay

Findings: - Above graph shows that 40% of group migrated or became inactive because of not having sound group coordination. 25% of SHGs became inactive and migrated because of migration of other group members from one place to another place. 20% of group migrated or became inactive because they did not have any criteria or management to follow those SHGs who have only one educated women and 10% of HIH SHGs migrated in any other MFIs just because of delay in loan disbursement. Note: - Loan size of HIH should be taken into consideration because in both, rural as well as urban areas borrowers dislike loan size.

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4.3. Causes of desertion in HIH;

STRUCTURAL

DESERTION

SEGMENTATION

CUSTOMER SATISFACTION

STRUCTURAL

CUSTOMER SATISFACTION
HIH image

SEGMENTATION

Growing competetion

Product adequacy

Product image

Customer profile

Geogrphical factor

Market adequacy

Regional factor

Economic factor

Customer service

Emotional value

Self esteem

Behaviour patterns

Psychogrphic segmentation

Life style

To improve retention, HIH needs to review the causes of desertion. Causes of desertion are numerous and sometimes inter-related, as below: -

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4.3.1 Growing competition:In the same target market 5-6 big names create face to face competition. For instance: Mahashemam, Spandana, Gram Vidyal, ASEFA, Equitas and lot of one man NGOs. In general, all these MFIs & NGOs operate in fragmented market, in which diverse participants in nature and size compete; as a result, the market share of HIH is diluted. Even the leader of the market (like HIH) will fail to reach to 30% market participation. The small MFIs & NGOs compete with large NGOs (like HIH). For example: some places in St. Thomas Mount, an NGO named Swathi Vaazga Valamudan Welfare Association did microfinance business with clients and this small NGO reduced the positional advantage of HIH. Human Resources: - Moreover, having a credit evolution methodology is not an entry barrier for new competitors since it is based on the expertise of its human recourses, which can be captured by a new entrant by hiring away the competing MFIs and NGOs staff. Indeed, this aggressive competitive strategy is taking place, evidence by high levels of loan officer turnover in the microfinance industry. Impact of growing competition: 1- Attractive offers by other MFIs easily attract consumer & HIH members. 2- People easily understand difference between two MFIs, this may create problem or may increase the trust level of HIH. The loan size of HIH is less than the other MFIs, according to this point of view borrowers make negative perception in mind and on other hand HIH provides trainings & social services, this should make positive perception in the mind of borrowers. 3- Multiple borrowing, because of increasing competition, members easily borrow loan from other MFIs. 4- Overdue, by increasing multiple borrowing overdue also create problems for borrowers. 5- 30%-40% group coordination is affected by increasing competition.

Note: - see 3.0 for knowing the penetration of other MFIs & NGOs in working field.

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4.3.2. Product adequacy: The basic credit product proposition, with stepped lending amounts, does not fit with the client that has already learned and evolved in members credit needs, where microcredit is not necessarily the most adequate product, resulting in high attrition levels due to the lack of sustainability that small loans produce or due to the vulnerability of customers being approached. For expansion of credit portfolio or for credit renewal HIH will adopt Consumer Confidence Index (CCI). CCI measures how optimistic or pessimistic consumers are with respect to the economy in the near future. Note: - HIH does not have any study on product adequacy and this is the main reason behind the gap between the first loan to second loan and size of loan. By field: % of three year old SHGs know HIH products % of staff know about HIH products (COs & BMs) --------35% 100% 80% 10%

% of staff believe that the HIH loan size is good % of SHGs inactive and migrated because of only loan size 4.3.3 Market adequacy: -

The basic microfinance model assumes, a market that has to be developed and HIH develops market with positive impact in urban as well as in rural areas. Lot of potential customers who took loan from individual person on high interest rate, now maximum of them have become HIHs good clients. This type of clients are continuing with HIH and because of these clients market expands like anything, up to June total 6,43,633 number of enterprises have been created so far. HIH start SHGs with training without charging cost, this is a very attractive part to catch market. HIH follows the famous quotation First impression is the last impression thats why at the time of introducing SHGs they provide training to group members on how to manage internal savings and loan. Note: - HIH does not have any study on market adequacy and this is the main reason of a gap between the loan period, loan size and COs resignation.

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4.3.4 Regional and economic factor: Regional economic factor is one of the most influencing factor for desertion. On the basis of regional economy micro entrepreneurs project the future sale. The regional economy is an essential consideration in the decision to renew credit, regardless of the quality of credit offer.

In HIH working area 80%-90% of regional economy is based on milk business, embroiling, zarf, silk sari production, leather made products, flower shop, agriculture, aquaculture, Tiffin business, tailoring, small grocery shop, tea business, ice-cream sale and vegetable shops. If, HIH focuses to promote these business by providing loan then client will find it easy to repay the loan amount and then no overdue on group members, no training would be necessary only follow up and take care of product will be required . In rural area; mainly milk business, agriculture and embroiling work is done by micro entrepreneurs and these three micro business shares approximately 90% of regional economy. In urban area; zarf work, sari sales, leather, flower shop, Tiffin business, tailoring, small grocery shop, tea business, ice-cream shops and vegetable shops share 80% of borrowers regional economy. Note: - Regional economy study provides to learn client unmet needs. HIH does not have any study on client unmet needs. % of three year old HIH borrowers has own enterprise % of borrowers spend money in their family business % of HIH members has multiple borrowing because of expansion in regional business ---70% ---20% ---20%

Findings: - Total 70% of HIH borrowers have own small enterprises and 20% is spent in their family business. HIH has to maintain this pattern and take care. HIH needs strategy to provide loan at the time of emergency otherwise these borrowers will be indulging in multiple borrowing.
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4.3.5 Product image: HIH has five types of loan products. 1- Grameen loan a) first installment of Rs.7500 b) Second installment of Rs.10,000 c) Third installment of Rs.15,000 SHG members will receive first installment loan after six month of formation, then second and third installment loan will get after the completion of first and second loan simultaneously. % of minimum three year old SHGs member get third loan --% of three year old SHGs member unlike Grameen loan in urban area --% of staff believe that loan size is main cause of multiple borrowing --% of COs have problem in approaching client because of loan size % of SHGs inactive and migrated because of loan size ----63% 80% 30% 40% 10%

2- Through Bank linkage member receive loan up to Rs.5,00,000 and minimum is Rs.60,000. % of minimum three year old HIH SHGs members like bank linkage --% of minimum three year old HIH SHGs member satisfied --80% 80%

3- Educational loan Rs.7,500 to Rs.12, 000 per member. (all for three year old SHG) % of three year old HIH SHGs want education loan --% of HIH SHGs member already have education loan from other MFIs--% of HIH SHGs members using internal loan for education purpose --50% 15% 85%

4- Water loan 5- Toilet loan

-----

Rs.3000 in rural area and Rs.6000 in urban area Rs.7500 in both area

Interest rate: - 15% per annum excluding bank linkage. HIH SHGs members who are worried about interest rate --12%
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Findings: - In urban area 80% of borrowers not like Grameen loan because of its size and time period. All SHG members did not get first loan (only 9/15 get) and if member having Grameen loan then they will not apply for bank linkage. Education loan is one of the most demanding products in between HIH SHG members because mostly members depend on daily wages, thats why at the time of school reopen demand of education loan increases. 4.3.6. HIH image: - Depend on follow up No doubt is being made on HIH image, but this image needs to be converted into trust. The main reason of migration is losing trust, whether from the side of staff or by products. HIH is famous for its social services. This is one of the most eminent Trusts in Tamil Nadu which provides lot of social services as credit plus activity like health camp, eye camp, environmental camp provide education to SHGs member children etc. % of 3 year old HIH SHGs member knows about social services % of 3 year old HIH SHGs members benefited % of HIH inactive & migrated SHGs members knows social service ------64% 29% 50%

HIH image also depends upon Credit Officers (CO) behavior on field and the way she approach, solve disputes in meetings, attend meetings, politeness at the time of overdue and help in book maintaining etc. Note: - One of the branch manager told in interview that COs approaching style is not good some time it hurts and give suggestion to HIH for build up new strategy on COs. % of COs attend group meetings (as per the COs) --100% % of COs behavior change after overdue --50% % of groups inactive because of lacking weekly meeting --30% % of three year old SHGs member like their COs --100% % of 3 year old SHGs members knows BM & RM --20% % of 3 year old SHGs member visited branch office (except leaders) --20% % of migrated, inactive members disputes not solved by staff --0% % of inactive members want to become active if problem solved --60% Note: - 100% member like COs but after overdue 50% members not like COs

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4.3.7. Quality of customer service: Though HAND IN HAND still has lots of grounds with respect to improving customer services, since HIH customers have lower expectation about service, except training, this makes it less important cause for desertion. In addition, the personalization and emotional involvement of the customer frequently replaces the service weakness of the HIH. Quality of customer service based on three types; 1- Training; 2- Social services; and 3- Follow up. Training: Issue: Does training help for client retention?

HIH provide four types of training to SHGs members namely; a) Animator & Representative training: - This training is for animators, leaders & representatives. Branch Managers and Credit Officers give A&R training at the time of starting SHGs. The objective of this training is to provide full knowledge on book keeping and account maintaining. b) M-1 training: - This training is for all group members. The objective of this training is to maintain group coordination among SHG members. M-1 training is compulsory for every group member after one month of starting of the group. c) M-2 training: - This training is compulsory for every member. The main objective of M-2 training is to provide basic concept of micro business or micro enterprises. d) M-3 training: - This is not compulsory, it is given on demand of members. The main objective of this training is to develop skills in group members for starting enterprises. The main component of this training is tailoring classes, computer classes, and hand loom product making techniques, glass paintings and many more.

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My field interviews through up the following patterns in training:In Rural Areas: % of three year old members who did not get skill training % of members who want skill training % of members like skill training % of SHGs inactive because of not getting skill training % of members who got skill training but not using it % of inactive members who did not get skill training In Urban Areas: % of members who did not get skill training % of members who got skill training but not using it % of three year members who want skill training % of members like skill training % of SHGs inactive because of not getting training % of inactive members needs training % of inactive members who did not get training In both areas: % of staff who thinks training is very useful for client retention % of other MFIs & NGOs like HIH training (total 10 members know HIH) ----50% 50% --------------85% 20% 23% 80% 0% 10% 20% ------------50% 60% 80% 0% 25% 40%

Findings: - No group migrated to other NBFCs or NGOs & became inactive because of not getting training. HIH services are very active in rural area. 60% rural SHGs member wants skill training. HIH training and services are liked by majorly all borrowers where as other MFIs members also like HIH training. In short training does not play very important role to stop group or members migration.

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Social services: HIH is well known for its social services. This is an NGO in Tamil Nadu which provides a number of social services like health camp, eye camp, and environmental camp. HIH provides education to children of SHG members and many more. % of COs and Branch Manager (BM) who are aware of social services % of three year old SHG members who are aware of social services % of three year old SHG members benefited by social service ------100% 62% 33% 50%

% of inactive & migrated SHG members who are aware of social service ---

Findings: - All Credit officers (CO), have knowledge on social services but they do not like to share it. Social service is a type of weapon which can be use only for sound not for shoot. When I was takin interview of Mahashemam, I saw her eyes full of emotional attachment with Mahashemam because every year Mahashemam provide her a sari and give scholarship to the children of SHGs members. Follow up: Group follow up is very important to know a) client needs, b) client problems, c) special issues, d) problem in distributing internal savings, e) building trust and proper group coordination. This work should be done properly by Credit Officers & Branch Managers. After COs resignation SHGs members do not know the staff and liable to be inactive, follow up is only the solution to this problem. 60% of inactive SHGs will become active if group coordination is maintained and they solve their internal group problems. Note: -1 - In St. Thomas Mount 10 HIH SHGs are inactive because of two Credit Officer resignation. Note: -2 - HIH needs to provide training to COs and Branch Managers on how to follow groups? Only attending meeting is not enough, must share & care with SHGs. This is the sure way to build trust. Note: - 3 - % of three year old SHGs members know mission and vision of HIH --- 50%

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4.3.8 Emotional involvement: Emotional involvement plays a crucial role to coordinate in between both sides. As Shown in the diagram below, this is not a one way approach.

Staff

Staff

Lower Staff

Upper staff

Staff

SHGs member

Staff

HIH

Emotional involvement in between Staff & SHGs builds trust. Sometimes clients expectation is high from the side of staff, wants to indulge in between them and wants a relation. Client knows very well that only staff will help in providing loan and help us at bad time. HIH is internationally famous for its five-pillar activity and on the basis of this Dr. Ranjan started programme on social entrepreneur. Credit Plus program is totally based on five-pillar activity so, its very necessary to maintain good coordination between all pillar staff. HR manager plays very crucial role for doing this job. HIH Credit Officers have inhibition to discuss the problem with Regional Managers and RMs have inhibition to discuss with the COO. To address this problem, first kill fear and make friendly atmosphere in working place. For instance; Play Rajnikant movie and invite higher as well as lower staff of all pillars in Kanchipuram head office.
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Techniques to build emotional involvements: 1- TAKE CARE

STRATEGY MAKERS

TRAINING TEAM

HIH SHG members

: - Through example the above diagram should be clear. HIH plan to disburse loan for buying Sewing Machines because of heavy demand and regional economic factor. This information is sent to all branches of HIH. Regional Managers and Branch Managers provide information to Credit Officer and set target of giving loan to 100 members. Credit Officer collects all information and application of 100 members. After analyzing all the factors of 100 applicants, strategy makers found that 50 applicants did not know tailoring. Strategy maker passed order to training department to provide training on tailoring. Borrowers were so happy because they got training as well as loan. In the eye of borrowers HIH is called as parent (HIH builds attachment here) and Credit Officers are very good according to borrowers.

Cont..

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All borrowers bought sewing machines and they continually earn money and every month they paid installment on time. After 6 months HIH found that 20 borrowers did not pay the 7th installment. Credit Officers found that these 20 borrowers sewing machine did not worked properly. At the beginning stage machine performance and output was very good but after 6 months machine performance decreased in absence of maintenance care. Borrowers did not know as to, when machine required servicing, after how many days handle should be greased and all small-small factors which were directly responsible to decrease the performance of sewing machine. Out of these 20 borrowers, 10 borrowers machine stopped working and they spent Rs.1000 in repairing sewing machine, means, an amount equal to two installments. At last borrowers were not able to pay the loan installment.

Effects: a) b) c) d) e) Overdue on borrowers; Increasing pressure to pay overdue on borrowers; Because of overdue Credit Officer got pressure from RMs and BMs; Resignation of Credit Officer; Credit Officers behavior and attitude changed at the time of approaching borrowers after over dues; and Note: - 50% Credit Officers behavior change after overdue f) Lacking group coordination in between group members.

Results: - a) Multiple borrowing b) If 20 members belong from five different SHGs, it means 4 members per SHG have this problem. So, may be out of this five SHGs two SHGs will become inactive. c) In short, out of 100 members 8 members will face trouble and because of these 8 members 2 SHG will become inactive and two SHG inactive means 24- 32 members will not be empowered. Overall: - 24% to 32% of members out of 100 are inactive just because of HIH did not have appropriate strategies to take care of borrower asset (sewing machine). Solution: a) At the time of giving M-3 training, HIH must provide training on how to take care of borrower assets. b) Introduce COMMUNITY RADIO http://en.wikipedia.org/wiki/Community_radio in village area. This is 100% subsidy scheme announced by Central Government.
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2- ROLE OF OPERATION / HR MANAGER FOR EMPLOYEE RETENTION Note: - Because of two Credit Officers resignation 10 SHGs migrated and became inactive.

A) Review meetings must be arranged in proper management with certain objective and should adopt strong MIS for analyzing performance of staff, particularly Credit Officers, Branch Managers & Regional Managers. B) Find the factors & solutions of releasing the target on the staff.

C) Motivational activities should be organized at the work place with certain objectives. D) Right recruitment, because some Credit Officers do not have the extent level of understanding and cannot solve the dispute among members. Dispute is one of the biggest factors responsible for the lack in group coordination.

Findings:1) 40% of SHGs became inactive and migrated because of inadequacy in group coordination. 2) According to HIH Human Resource Manager; employee retention is directly proportional to client retention & SHGs are inactive mostly because of lack of monitoring and lack of staff participation with groups. 3) HIH SHG operation department does not have any training on client retention. Interaction between staff is not sound.

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directly y related to client retention 4.3.9. Segmentation variables which directl

Clients may be analyzed from various perspectives, called segmentation variables. In the case of inactiveness & migration, it is very important to note that segmentation variables must be based not only on elements related to credit credit, , but also on behavior patterns, like psychographic (i.e. life style) segmentation that will provide in in-depth depth insight as to the reason for migration and inactive inactiveness.

Segmentation variables involved in retention retention: Customer should be analyze analyzed by----------------Six perspectives or segmentation variables Stability of family income

Borrowers have confidence

Tention free at the time of overdue

Microbusiness level income

Knows current business

Need only monitoring & follow up

Attitude towards loan

On the basis of caste

Age and experience as a micro micro-entrepreneur entrepreneur

Intensity of doing work

Find out members goals

What they knows about work

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At the time of forming an SHG, always remember the following:

Do not allow unmarried girls to join and if other members of SHG select them, then never give them big responsibilities (i.e. leader & representative) In group, atleast 2-3 members should be educated and have training for book keeping through HIH. Members are only from local area. Government working women should not be a leader of a group. Leader of a group should not be working in any private job. Ensure that before joining SHG, members did not have any multiple borrowings. If applicant migrated from any other area and wants to join SHG in present living area, then find out the reason of migration.

Supportive arguments: - In fig. 85% member migrated or inactive just because of

wrong segmentation. Graph- 1.1
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Group cordination Members migration Illiteracy loan delay Group coordination Members migrated illiteracy loan delay

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The picture shows the home of an inactive SHG leader. She have all luxurious items (i.e. LCD TV, AC, Branded sofas, very good interior etc.)

Findings: - If you give loan to these members then they will go against Microfinance business
and because of having all facilities they will not join and arrange meetings. The main reason behind this group becoming inactive was death of leaders husband. After the husbands death, her daughter did not give permission to run SHG, because her daughter is working in good MNC & mother (leader) also has good income. Note: - According to my study, 2-3 similar cases have same problem in St. Thomas Mount.

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5.0. Customer Retentions

Without discrimination, most of the MFIs wish to retain all their customers. However, HIH should consider only those who efficiently use HIH resources; focus is required to retain better customers who are at risk of leaving. In choosing how to focus its effort on, the MFI faces dilemma of identifying who are the most valuable customers the most profitable customers or the poorest (the HIH mission). By combining variables listed below, one can identify a valuable customer: -

Determine the algorithm of customer revenues minus costs to serve members. The main available information is the loan amount, interest rate, service costs, funding costs, and delinquency among others. The customer revenues provided by each client are projected by the numbers of years that the customer will probably be in the HIH, then calculate the present value of these future revenues with an adequate discount rate, to estimate a Life Time Value (LTV) of each customer. Probability of leaving, establishes a method which is a mixture of qualitative and quantitative analysis. The main quantitative information is the time; the client spends with HIH, the accumulated delinquency days, and his business activity. The following table shows some considerations that should be factored in when deciding whom to retain as a priority.

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Table-1.0 Strategic importance Profitability Loyalty Life time value (LTV)

Opinion leaders, those belonging to the segment that fits well with the competencies of the HIH, or other potential growth segments.

Customer relevance often follows the Pareto rule, whereby 20% of the customers provide 80% of profitability. It is important to differentiate whom to retain versus whom to reward. Retention and rewarding strategies are not equal. One could be necessary, the other being optional.

Some customers are inherently more loyal than others, for reason having to do with their profiles rather than something attributable to the HIH (e.g. young microentrepreneurs tend to test more options before staying with one).

The customer value is measured with respect to its future sale potential and not to the current potential.

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6.0. Against social perspective

I have chosen three inactive HIH SHGs whose members migrated or vacated the place after taking internal loan as well as Bank loan. Respondent was the leader of the inactive group.

Question: - What is the main reason of your SHG being inactive?

When I asked this question, she simply turned off. What I saw in the eyes of leader was a big shamefulness for any microfinance institution. After seeing her eyes and what she told me, I also felt ashamed and cursed myself, why I chose a career in Microfinance but then I realized that, I will change this scenario* in microfinance business and I will be proud to make my career in Microfinance. *Scenario is, after taking loan members migrate or vacate the place of living, so all responsibilities come on the shoulder of the leader. At the time of sharing responsibility no member stands with the leader. Representatives said, You make this group, you are the only person who has responsibility to pay Bank loan, HIH loan and if you want to run SHG then pay group internal savings which was taken by migrated members. At this moment of time leader becomes hopeless and attempts to suicide.

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FRAMEWORK ON RETENTION IMPROVEMENT

1.

DIAGNOSIS

Table-1.1
INFORMATION SOURCES Secondary sources; HIH database Suggestion box Competitor research MARKETING CAUSES OF DESERTION INTELLIGENCE Causes; Where clients going and what are their new financial Structural sources. Customer satisfaction Rejected clients for Segmentation renewal by credit officer. Clients in rest Desertion curve Satisfaction level with the HIH value offer.

offer

Primary data; Marketing research with clients and former clients Traffic study from agencies

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2. SEGMENTATION

Table-1.2 INFORMATION SOURCES Segmentation variables found on HIH database; Age Activity Place of residency (urban-rural) Income level or poverty level Caste Husband activity Early clients Amount credit Delinquency Cost by customer CUSTOMER SEGMENTATION Social status Best customer to hold Clients at risk of leaving Loyalty Life time value(LTV) Profitability SEGMENT BY PRIORITY on the priority of availability after finding and analyzing

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3.
Table-1.3

SOLUTION

CHOOSE RELEVANT CAUSES The 20% of the causes that are provoking the 80% of desertion.

GENERATE SOLUTIONS Techniques to generate ideas (i.e. brain storming, problem reversion, random entrances.etc.)

PRIORITIZE SOLUTIONS Costs versus perceived value (see 5.0)

4.

MONITORING

Table-1.4 DEFINE GOALS AND MEASURE Goals by segment Adequate measure Benchmark PERFORM ACTIVITIES MONITORING

For each segment For the whole client base With a pilot in a branch With a pilot in a specific segment

Pilot protocol Set up measures Adjusting on the go

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HIH BEST SHG WE EVER MET DURING STUDY IN CHINNA KAANCHIPURAM

SHG name: - Kalpana Chawla Area name: - Mallingal Shreeniwarn (village) Respondent:-Leader SHG Formed: - In 2005 Note 1- Regional economic depend upon milk business. Totally, 150 HIH SHG members doing this business in particular area. Note 2- We met two members from same group to counter the leader answer but all are same. Note 3- This conversation shows the emotional touch in between HIH and clients thats why grammatical error is not consider. When you joined HIH? What is your responsibility in SHGs? In 2005, I am leader.

1. How you know about HIH? She started group saving by 2002 but I joined HIH in 2005 because of Ms. Kalpana (CO)

2. Do you know about HIH vision and mission? Please brief about? Job creation & women empowerment.

3. You know the loan product of HIH? If yes which loan product is most useful for you? Yes, I know Garmin loan, milk animal loan & toilet loan. I like milk animal loan and toilet loan but milk animal loan like most.

4. Have you visit your branch, regional & head office? And where it is located? Yes, I visited branch office and know Branch Manager & China Murugan sir.

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5. What is your opinion about your Credit Officer and Branch Manager? They help me in book maintaining because my members are uneducated. BM visited two times in a month, she is also good.

6. What is your opinion on HIH? HIH is Helping Hand they fulfil our needs.

7. Have you attended any training? (Need brief explanation). Is training help you? You want more training? Milk animal training, how to run business, how to produce agriculture products. I get more benefited by milk animal training.

8. Have you received any loan from HIH? What is the loan size? Rs.50,000 / 10 members Rs.1,00,000/ 10 members Rs.1,50,000/ 10 members Milch animal loan Rs.25,000 * 10 = Rs.2,50,000 Toilet loan Rs. 6,000 * 6 = Rs. 60,000

9. Is loan enough for you to run to your enterprise? Or start the enterprises? Enough but starting time not enough.

10. If no, where will you get amount for fulfil your demand? From the group means internal loan.

11. Do you happy with the loan lending process of HIH? She happy the loan lending process.

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12. Is there any force to start and run any enterprises from HIH side? You want any training or loan to enhance your enterprise? No force, no need to training & in emergency veterinary doctor is available.

13. Is HIH support your enterprises? For ex. Training and marketing? No market linkages.

14. Have you used the loan amount only for the enterprises or any other purpose? (state all purposes) Only enterprise purpose for other purpose we use internal loan.

15. How many times you and your group are getting loan from HIH? And how many times you use these loan for enterprising? Five times through HIH. Every time we use this loan to buy cow.

16. What are the loan products of other MFI in your area? Please brief about. No other MFIs.

17. Do you have any need or suggestion to HIH for launching new product? What you want? I do not know. She wants to reduce the interest rate and provide market linkage.

18. Do you have any unmet needs in HIH? No

19. How many times HIH support to get loan from bank for your group? What is the amount? Two times. Rs. 4,00,000 / 20 and Rs.40,000

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20. How many times you and your group members got the loan from other MFIs? And how many times you use it for enterprise. (know for multiple borrowing) No, I did not get any loan from other MFIs because group saving is fulfill the demands and no other MFI in my village.

21. Any prohibition of getting loan from SHG at the time of your emergency? Yes, from internal loan.

22. At present have u need any loan for your enterprise or any other purpose? After completing current loan I will approach for next loan.

23. If no, from where you getting loan at the time of emergency or special needs. (to know the penetration) From group savings.

24. What are the special features of HIH? Staff behavior, Good cooperation with HIH.

25. What are all the MFIs working in your villages? No other MFIs working in my village.

30. Before joining the HIH are you the member of any MFI? If yes why you leave that MFI? Give reason? NO

31. If any other MFI approach you to join their MFI. What will you do? Strongly against to join other MFIs

32. After joining SHG, have you feel empowered or not? More empowerment, I know bank loan. 100% get empowered. Thanks to HIH.

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BEST SHG WE MET DURING STUDY IN St. THOMAS MOUNT

SHG name: - Selapathygaram Area name: - Pammal (urban) Respondent:-Leader & member SHG Formed: - In 2007 Note: - Regional economic depend upon sari sales, tailoring, water supply, Tiffin business & other small business.

1. When you joined HIH? What is your responsibility in SHGs? In 2007, I am leader.

2. How you know about HIH? 3. Credit Officer approach to join HIH.

Do you know about HIH vision and mission? Please brief about? Create job opportunity for women.

4. You know the loan product of HIH? If yes which loan product is most useful for you? Do not know about products.

5. Have you visit your branch, regional & head office? And where it is located? Yes, I visited branch offices. St. Thomas Mount.

6. What is your opinion about your Credit Officer and Branch manager? They are all cooperative, on one call she came. If she resigns I am with HIH.

7. What is your opinion on HIH? It provides all facility, we are happy.

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8. Have u attended any training? (Need brief explanation). Is training help you? You want more training? A&R training, no skill training get. I do not want training.

9. Have you received any loan from HIH? What is the loan size? Group received Rs.30, 000 & Rs.1, 05,000.from HIH. From bank Rs. 60,000 (Relief fund) and Rs. 1, 80,000 for enterprise.

10. Is loan enough for you to run to your enterprise? Or start the enterprises? Yes. I do not want loan.

11. If HIH plan to give loan to your other family members then how many your family members will apply? Two, because both have enterprises.

12. If no, then from where you will receive amount for fulfil your demand? From the group, means internal loan.

13. Do you happy with the loan lending process of HIH? Yes! Happy and I know bank lending process. a) Compulsory meetings; b) 80% attendance; c) Documents; like family card, ID card etc.; d) Internal savings in bank and e) Having enterprise

14. If happy please brief about. If not happy brief about.

Rate of interest less. Documentation procedure good.

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15. Is there any force to start and run any enterprises from HIH side? You want any training or loan to enhance your enterprise? No one force, I want market linkage, first give training on market linkage.

16. Is HIH support your enterprises? For ex. Training and marketing? NO

17. Have you used the loan amount only for the enterprises or any other purpose? Only enterprise purpose. I used internal loan for other purposes. Other purposes like education etc.

18. How many times you and your group are getting loan from HIH? And how many times you use these loan for enterprising? Two times, two times.

19. What are the loan products of HIH? Do not know about products.

20. What are the loan products of other MFI in your area? Please brief about. Do not know. Mahashemam & Gram Vidyal working in my area. One member of my group has a loan on weekly payment by individual person. On Rs.5000 she gets Rs.4750 and every week paid Rs. 625 for 10 weeks. She does not have any problem in repaying amount.

21. Do you have any need or suggestion to HIH for launching new product? What you want? (for knowing actual needs) She wants market linkage.

22. Do you have any unmet needs in HIH? No

23. How many times HIH support to get loan from bank for your group? What is the amount? Two times Rs. 60,000 & Rs.1, 80,000.

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24. How many times you and your group members got the loan from other MFIs? And how many times you use it for enterprise. Did not get. Only one member. 25. Any prohibition of getting loan from SHG at the time of your emergency? Yes, every member gets internal loan.

26. At present have u need any loan for your enterprise or any other purpose? No 27. If no, from where you getting loan at the time of emergency or special needs. By internal loan. 28. What are the special features of HIH? Good staff behavior. 29. What are all the MFIs working in your villages? Mahashemam, Gram Vidyal.

30. Please tell about their special features? Dont know.

31. Before joining the HIH are you the member of any MFI? If yes why you leave that MFI? Give reason? No this is the first.

32. What is the difference between HIH and other MFIs? HIH- low interest, like a joint family, basically it takes ID proof. Other MFIs has weekly installment and more interest.

33. If any other MFI approach you to join their MFI. What will you do? No, do not want to join other MFIs. Because they have come and go strategy.

34. After joining SHG, have you feel empowered or not? Feel empowered, before joining HIH no friends; do not know about the outside the home and now empowered.

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IMPORTANT CONCLUSIONS
The desertion endemic throughout the microfinance industry is a forewarning about the mismatch between the value offers delivered by the MFIs and the expectation of the micro entrepreneurs. The HAND IN HAND market share is very strong in rural as well as urban areas. HIH fivepillar activities make it different from other MFIs and this is the strongest reason behind HIH success. It is important to keep in mind that successful micro entrepreneurs are people who choose financing options based on the relative cost/ benefit of any offer. Their intuitive rationale takes into consideration the convenience of credit renewal. Internal and external monitoring means comprehensive monitoring track desertion and effective change. The present study by me shows that the dissatisfaction issue is more related to core credit features that are ultimately translated in the total effective price. For improved retention, customer service features are less important than improving the core product features. Finally, retention in a competitive market depends on the help to the customers to grow. The success of the SHGs is dependent on the success of the HIH. In this sense, micro business consulting, networking, training and financial literacy, among nonfinancial services, must be included in the scope of HIH, if it wants a sustainable and substantial market share in the long term. In next 4 to 5 years HIHs impact in rural as well as in urban areas of Tamil Nadu may exceed 80%, if it works on structural changes, customer satisfaction and segmentation, as explained by me in this report. (Page 39)

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ANNEX 1.0 GRAM VIDYAL LOAN CARD

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Cont.

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Cont..

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ANNEX-1.1. MAHASHEMAM LOAN CARD

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Cont.

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ANNEX 1.2. SAMASTHA MICROFINANCE LOAN CARD

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REFRENCES

Microfinance redefining the future book written by V.S. Somanath and published by Excel publication in 2009. Sam Dalley- Haris (2007) State of the Micro Credit Summit Campaign Report 2007 Microfinance through SHGs: A Boon for the Rural Poor a research paper written by Rimjhim Mousumi Das and published by DEEP & DEEP Publications Pvt. Ltd. in 2009.

Microcredit and Rural Development book written by Anil Kumar Thakur and Praveen Sharma. Microcredit Summit 2006. All SHG pillar staff of HIH (OFFICIAL) http://www.hihinternational.org/ http://www.hihinternational.org/NewsItems/social-entrepreneurship-program.aspx http://www.hihindia.org/handinhand/facts_and_figures/annual_report/

Opportunity with HIH 1) For Internship

http://www.hihindia.org/handinhand/get_involved/internship/

2) For Volunteer
http://www.hihindia.org/handinhand/get_involved/volunteers/

3) For Careers
http://www.hihindia.org/handinhand/get_involved/careers/

4) For Donors
http://www.hihindia.org/handinhand/get_involved/donate/

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ANY SUGGESTIONS
(Suggestions should be considered to edit the report)

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READERS COMMENTS

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