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CHAPTER 1: INTRODUCTION

Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services.

More broadly, it is a movement whose object is "a world in which as many poor and nearpoor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers." Those who promote microfinance generally believe that such access will help poor people out of poverty.

Microfinance is a broad category of services, which includes microcredit. Microcredit is provision of credit services to poor clients. Although microcredit is one of the aspects of microfinance, conflation of the two terms is endemic in public discourse. Critics often attack microcredit while referring to it indiscriminately as either 'microcredit' or 'microfinance'. Due to the broad range of microfinance services, it is difficult to assess impact, and very few studies have tried to assess its full impact.

With the boon of rapid GDP growth that India has witnessed in the past decade, it has also experienced the bane of increased socio-economic inequality among different sections of the society. Thus, economic independence of the lower section is the key driver towards eradicating this inequality and establishing an inclusive growth model. In a country like India with a large rural, agro-dependant population, micro finance has emerged as a viable means of economic upliftment.
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A large majority of the Asian population still lives under $2 a day and in extremely poor conditions. Sustenance of this inequality could trigger tensions among different groups and may result in armed conflicts. This section of the society urgently needs to be brought into the economic main stream to achieve inclusive growth. The role of the financial sector in achieving this inclusive growth comprises of providing financial services to this segment and this is where micro finance plays a crucial part.

Using the $2-a-day poverty line, the level of poverty has only declined from 86.5% to 79.8% between 1990 and 2005, suggesting that more than half of developing India still lives in very poor conditions, is vulnerable to shocks, and may easily slip into extreme poverty.

To address such risks, India's development agenda will need to be expanded to include not only the eradication of extreme poverty, but an inclusive growth strategy to address the legitimate concerns of this large segment of the population. The ultimate outcomes of inclusive growth are sustainable and equitable growth, social inclusion, empowerment and security.

Although the banking sector has made significant developments in many areas of their performance, there still exist large portions of the population which are yet to be brought under the umbrella of banking services. Financial inclusion efforts are essential to bring those portions of the population into the mainstream. This would enable banks to expand their market share but expand the overall market, in the process of tapping the Bottom of Pyramid (BoP).

1.1 SUCCESSFUL INTERNATIONAL MODELS

To set up successful models for microfinance in India, experience can be drawn from the various microfinance models set up internationally.

Multiple international experiences of successful inclusive banking indicate that it is useful for banks to deal with groups of customers organized in the form of Self-Help Groups rather than trying to approach and attract customers individually. In Bangladesh, Grameen Bank offers small-sized loans to groups of customers. This helps in better recovery as the group ensures that its members maintain the credit discipline. Many other countries have adopted innovative models to achieve the same.

Credibanco, the Visa franchise holder in Colombia, has adapted its technology and service infrastructure to help the country's banks reach low-income customers and equip small merchants like grocery stores, pharmacies and gas stations with point-of-sale devices.

Tameer Micro finance Bank Limited of Pakistan, since its inception, has aimed to be a pioneer and trendsetter in terms of deploying innovative, economical and user-friendly technologies in order to provide easy access of financial services to its customer base across the country. It has installed Pakistan's first biometric ATMs.

1.2 MICROFINANCE MODELS FOR THE INDIAN CONTEXT

Any robust banking model for financial inclusion in India must take into account the perceived issues in doing business with the target group. These include:

1. Small-sized transactions 2. Geographical spread of customers 3. Absence of well-defined propriety rights 4. Absence of well-defined property rights 5. Risks faced by small producers to be factored into product pricing.

The models described below can resolve the major issue of Geographical Spread of customers. The possible solutions for the same can be:

1. Taking the bank to the customers 2. Setting up proxy branches at customer locations

Taking the bank to the customers: Mobile Banking

This model proposes a commercial banking service to rural communities to enable rural people to better manage their money and to make informed choices on the best use of the new banking service.

As the name suggests, the model will comprise of a fleet of mobile banks that travel on a regular schedule to a designated set of villages within a defined geographical area. Mobile banks will essentially be large vans modified for the purpose and connected to the main bank by a satellite network. The size of the fleet should vary with the number of villages and rural population under each district.

A similar model has been very successful in penetrating the rural markets of countries like Fiji in the South Pacific. However, since India is a large country with higher degree of diversity, a more complex hierarchical system of mobile banks will emerge.

Setting up proxy branches at customer locations: Branchless Banking

This model focuses on the use of technology to set up bank terminals close to the customers. Technology infrastructure like ATMs and biometric finger print scanners are high costs solutions. However, if network infrastructure is already available at customer locations, then terminals such as bankcard readers can be set up at very low costs.

A tie-up with an organization like the ITC to leverage the strength of its rural supply chain network e-Choupal can be a viable solution for the same. Bankcard readers can be installed at e-Choupals and the choupals can work as an intermediary between the bank and the customer. The bank can pay a fee to ITC on a per transaction basis in order to utilize its network.

1.3 STATUS IN PUNJAB

Punjab is one of the most peculiar states of India, both for its social composition and economic structure. This peculiarity could be the main cause which prevented the traditional Microfinance model from taking roots in Punjab, while it developed at exponential growth rates in the rest of India (where it is based on joint as well as severally liable groups of women).

Various Microfinance Institutions carried out feasibility studies on the possibilities to enter the Punjabi market, but results have been discouraging so that MFIs did not persist with their purpose.

The few examples of Microfinance in Punjab are linked to government programmes which so far couldnt not prove to be economically sustainable and therefore have not reached dimensions of scale that could change the situation for the poor.

1.4 ROAD AHEAD

The move towards inclusive financing is a big challenge for the financial system. At the all India level, less than 5% of poor rural households have access to microfinance as compared to 60% in Bangladesh. The southern states account for almost 75% of funds flowing under microfinance programmes. By far the most successful model of microfinance in India in terms of outreach is SHG Bank Linkage.

However, a lot needs to be done to achieve the benchmark levels in terms of Banks' outreach and deposit ratios. Banks would need to adopt an innovative, customer-friendly approach to increase their effective reach so that share of organized finance increases. Banks have a critical role to play in inclusive growth and thus reaching the BoP customers.

1.5 INDUSTRY PROFILE


A Co-operative bank, as its name indicates is an institution consisting of a number of individuals who join together to pool their surplus savings for the purpose of eliminating
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the profits of the bankers or money lenders with a view to distributing the same amongst the depositors and borrowers. The Co-operative Banks Act, of 2007 (the Act) defines a co-operative bank as a cooperative registered as a co-operative bank in terms of the Act whose members 1. are of similar occupation or profession or who are employed by a common employer or who are employed within the same business district; or 2. have common membership in an association or organisation, including a business, religious, social, co-operative, labour or educational group; or 3. have common membership in an association or organisation, including a business, religious, social, co-operative, labour or educational group; or 4. Reside within the same defined community or geographical area.

CO-OPERTIVE BANKING - AN INTRODUCTION: Co-operative bank, in a nutshell, provides financial assistance to the people with small means to protect them from the debt trap of the moneylenders. It is a part of vast and powerful structure of co-operative institutions which are engaged in tasks of production, processing, marketing, distribution, servicing and banking in India. A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. These banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts). Co-operative banks differ from stockholder banks by their organization, their goals, their Values and their governance.

The Co-operative Banking System in India is characterized by a relatively comprehensive network to the grass root level. This sector mainly focuses on the local population and micro- banking among middle and low income strata of the society. These banks operate mainly for the benefit of rural areas, particularly the agricultural sector. ORIGIN AND OPERATION OF COOPERATIVE BANKING The beginning co-operative banking in India dates back to about 1904, when official efforts were made to create a new type of institution based on principles of co-operative organization & management, which were considered to be suitable for solving the problems peculiar to Indian conditions. The philosophy of equality, equity and self help gave way to the thoughts of self responsibility and self administration which resulted ingiving birth of co-operative. The origin on co-operative movement was onesuch event-arising out of a situation of crisis, exploitation and sufferings. Co-operative banks in India came into existence with the enactment of the Agricultural Credit Co-operative Societies Act in 1904. Co-operative bank form an integral part of banking system in India. Under the act of 1904, a number of co-operative credit societies were started. Owing to the increasing demand of co-operative credit, anew act was passed in 1912, which was provided for establishment of co-operative central banks by a union of primary credit societies and individuals. Co-operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Cooperative Societies) Act, 1965.

OPERATION OF CO-OPERATIVE BANKING: Establishments: Co-operative bank performs all the main banking functions of deposit mobilisation, supply of credit and provision of remittance facilities. Co-operative Banks belong to the money market as well as to the capital market. Co-operative Banks provide limited banking products and are functionally specialists in agriculture related products. However, cooperative banks now provide housing loans also. UCBs provide working capital loans and term loan as well.

The chief functions of Co-operative banks are: a. To attract deposit from non-agriculturist, b. To use excess funds of some societies temporarily to make up for shortage in another, c. To supervise and guide affiliated societies.

The basic principles on which a Co-operative bank works are: A co-operative character of activities and trait of mutual aid of credit granted. Catering for collective organizations and their members. Restriction on the number of individual votes. As a result, during 2007-08, the Primary Cooperative Agriculture and Rural Development Banks have again started lending for the Non-Farm Sector including Jewel Loans. Aiming at high rates on deposits and low rates on lending. Limitation of dividends out of profits and bonus to depositors and borrowers or grants to cultural or co-operative endeavour.

These banks are constituted of voluntary association, self-help and mutual aid, one share one vote and non-discrimination and equality of members. The co-operative banks are the organizations of and for the people.

ROLE OF CO-OPERATIVE BANKING IN INDIA: Co-operative Banks are much more important in India than anywhere else in the world. The distinctive character of this bank is service at a lower cost and service without exploitation. It has gained its importance by the role assigned to them, the expectations they are supposed to fulfill, their number, and the number of offices they operate. Cooperative banks role in rural financing continues to be important day by day, and their business in the urban areas also has increased phenomenally in recent years mainly due to the sharp increase in the number of primary co-operative banks. In rural areas, as far as the agricultural and related activities are concerned, the supply of credit was inadequate, and money lenders would exploit the poor people in rural areas providing them loans at higher rates. So, Co-operative banks mobilize deposits and purvey agricultural and rural credit with a wider outreach and provide institutional credit to the farmers. Co-operative bank have also been an important instrument for various development schemes, particularly subsidy-based programmes for poor. The Co-operative banks in rural areasmainly finance agricultural based activities like: Farming Cattle Milk Hatchery

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Personal finance The Co-operative banks in urban areasfinance in activities like: Self-employment Industries Small scale units Home finance Consumer finance Personal finance Some of the forward looking Co-operative banks have developed sufficient core competencies to such an extent that they are able to challenge state and private sector banks. The exponential growth of Co-operative banks is attributed mainly to their much better contacts with the local people, personal interaction with customers, and their ability to catch the nerve of the local clientele. The total deposits and lendings of Co-operative banks are much more than the Old Private Sector Banks and the New Private Sector Banks.

IMPORTANCE OF CO-OPERATIVE BANKING Co-operative bank forms an integral part of banking system in India. This bank operates mainly for the benefit of rural area, particularly the agricultural sector. Co-operative bank mobilize deposits and supply agricultural and rural credit with the wider outreach. They are the main source for the institutional credit to farmers. They are chiefly responsible for breaking the monopoly of moneylenders in providing credit to agriculturists. Co-operative bank has also been an important instrument for various development schemes, particularly

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subsidy-based programmes for the poor. Co-operative banks operate for non-agricultural sector also but their role is small. Though much smaller as compared to scheduled commercial banks, co-operative banks constitute an important segment of the Indian banking system. They have extensive branch network and reach out to people in remote areas. They have traditionally played an important role in creating banking habits among the lower and middle income groups and in strengthening the rural credit delivery system.

HISTORY OF CO-OPERATIVE BANKING The origins of the cooperative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany, such societies were set up in India. Now, Co-operative movement is quite well established in India. The first legislation on cooperation was passed in 1904. In 1914 the Maclagen committee envisaged a three tier structure for co-operative banking viz. Primary Agricultural Credit Societies (PACs) at the grass root level, Central Co-operative Banks at the district level and State Co-operative Banks at state level or Apex Level. In the beginning of 20th century, availability of credit in India, more particularly in rural areas, was almost absent. Agricultural and related activities were starved of organised, institutional credit. The rural folk had to depend entirely on the money lenders, who lent often at usurious rates of interest.
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The co-operative banks arrived in India in the beginning of 20th Century as an official effort to create a new type of institution based on the principles of co-operative organisation and management, suitable for problems peculiar to Indian conditions. These banks were conceived as substitutes for money lenders, to provide timely and adequate short-term and long-term institutional credit at reasonable rates of interest. FEATURES OF CO-OPERATIVE BANKING 1.Co-operative Banks are organized and managed on the principal of cooperation, selfhelp, and mutual help. They function with the rule of "one member, one vote". function on "no profit, no loss" basis. Co-operative banks, as a principle, do not pursue the goal of profit maximization. 2. Co-operative bank performs all the main banking functions of deposit mobilisation, supply of credit and provision of remittance facilities. 3. Co-operative Banks provide limited banking products and are functionally specialists in agriculture related products. However, co-operative banks now provide housing loans also. 4. Co-operative banks are perhaps the first government sponsored, government-supported, and government-subsidised financial agency in India. They get financial and other help from the Reserve Bank of India, NABARD, central government and state governments. They constitute the "most favoured" banking sector with risk of nationalisation. For commercial banks, the Reserve Bank of India is lender of last resort, but co-operative banks it is the lender of first resort which provides financial resources in the form of contribution to the initial capital (through state government), working capital, refinance.

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5. Co-operative Banks belong to the money market as well as to the capital market. Primary agricultural credit societies provide short term and medium term loans. 6. Co-operative banks are financial intermediaries only partially. The sources of their funds (resources) are: (a) Central and state government, (b) The Reserve Bank of India and NABARD, (c) Other co-operative institutions, (d) Ownership funds and, (e) Deposits or debenture issues. 7. Some co-operative bank are scheduled banks, while others are nonscheduled banks. Cooperative Banks are subject to CRR and liquidity requirements as other scheduled and nonscheduled banks are. However, their requirements are less than commercial banks. 8. As said earlier, co-operative banks accept current, saving, and fixed or time deposits from individuals and institutions including banks. 9. In the recent past, the RBI has introduced changes in interest rates of cooperative banks also, along with changes in interest rates of commercial banks. The interest rates structure of co-operative banks is quite complex. The rates charged by them depend upon the type of bank, the type of loans, and vary from state to state. 10. Since 1966 the lending and deposit rate of commercial banks have been directly regulated by the Reserve Bank of India. 11. Co-operative banks (COBs), in short, have played a pivotal role in the development of short-term and long-term rural credit structure in India over the years. The co-operative credit effort is said to be the first ever attempt at micro-credit dispensation in India.

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Co-operative Banks share some common features for their customer benefit: Customer's owned entities: In a co-operative bank, the needs of the customers meet the needs of the owners, as cooperative bank members are both. As a consequence, the first aim of a co-operative bank is not to maximize profit but to provide the best possible products and services to its members. Some co-operative banks only operate with their members but most of them also admit non-member clients to benefit from their banking and financial services. Democratic member control: Co-operative banks are owned and controlled by their members, who democratically elect the board of directors. Members usually have equal voting rights, according to the cooperative principle of "one person, one vote". Profilallocation : In a co-operative bank, a significant part of the yearly profit, benefits or surplus is usually allocated to constitute reserves. A part of this profit can also be distributed to the cooperative members, with legal or statutory limitations in most cases.

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CHAPTER 2: PROFILE OF COOPERATIVE BANK

THE PUNJAB STATE COOPERATIVE BANK LTD.CHANDIGARH ORGANISATION The Punjab State Cooperative Bank Chandigarh was established on 31st August 1949 at shimla vides Registration No.720 as a principal financing institution of the cooperative movement in the state. It has 19 branches and 3 extension counters in the city of Chandigarh. 20 Central Cooperative Banks having 788 branches and 19 Extension Counters in the State of Punjab are affiliated with the bank. In the Cooperative banking structure the position of the Punjab State Coop Bank is extremely important as a the whole short term credit system revolves around it. This bank ensures that its member central cooperative banks follow sound banking practices and observe strict financial discipline. The Central Cooperative Banks are financing the farmers through PACS at the village Level. There is no arena of life where this premier institution has not played its part. From a farmer, artisan to traders/businessman, everybody has been covered in the fold of this institution. The green, white and sweet revolutions in the state of Punjab are some of the major achievement in which this institution has plays a vital role. The Punjab State Cooperative Bank has already been awarded "BEST

PERFORMANCE AWARD" from NABARD and NAFSCOB. For the year 2003-04, Punjab Cooperative Bank has been selected for NABARDs Best Performance Award which is based on performance of all the SCBs in the country. Similarly our Jalandhar
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DCCB has also been selected for NABARDs Best Performance Award out of all the DCCBs in the country for the year 2003-04. OBJECTIVES

To serve as a Balancing Centre for Cooperative Societies in the State for Cooperative Societies in the State of Punjab registered under the Punjab Cooperative Societies Ac, 1961 for the time being in force.

To promote the economic interest of the member banks and cooperative societies in the state in accordance with cooperative principles and to facilitate the development and funding of any cooperative society registered under the said act.

To carry on banking and credit business.

MANAGEMENT The present Board of Directors was constituted in May 2005. Now the management of the bank is being looking after by the elected BOD.
Chairman Mr. Avtar Singh Zira Managing Director Mr. G.S. Mangat Additional Managing Director- Administration Mrs. NishaRana Additional Managing Director- Banking Sh. Udham Singh General Manager (Operation and Accounts) 17

Sh. J.K. Bansal General Manager (Non-Farm Sector) Sh. Bachhitar Singh Tiwana Deputy Registrar (VIG) S. Manjeet Singh Establishment Officer Sh. Harish Chander

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AWARDS AND ACHIEVEMENTS


AWARDS The Punjab State Cooperative Bank has already been awarded BEST PERFORMANCE AWARD from NABARD and NAFSCOB. For the year 2003-04, Punjab Cooperative Bank has been selected for NABARD's Best Performance Award " which is based on performance of all the SCBs in the country. Similarly our Jalandhar DCCB has also been selected for NABARDs Best Performance Award out of all the DCCBs in the country for the year 2003-04.

ACHIEVEMENTS

1.

S.T. AGRI. LOAN

The Cooperative Banks in the State have advanced Rs.5894.28 Crores as ST Agri. Loan during the year 2008-09 as compared to Rs.5828.28 crore during 2007-08. Similarly during 2009-10, Rs 7147.26 crores stand disbursed till 26.02.10 against the target of Rs.6800.00 Crores.

2.

R.C.C. LIMIT

During 2008-09 the Central Coop. Banks in Punjab have sanctioned R.C.C limits worth Rs.2091.75 crores as compared to Rs.1919.55 crore of 2007-08. During the year 2009-10

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the bank has sanctioned RCC limits worth Rs.2207.94 crore against the target of Rs.2265.78 crores (up to January ,2010).

3.

TWO WHEELER LOANS TO AGRICULTURISTS

Under Two Wheeler Loan Scheme the farmers can take loan up to 75% of two-wheelers cost or Rs.50,000/- whichever is lower from the Central Cooperative Banks. During the year 2008-09, the Bank has advanced a sum of Rs.34.42 crore. Similarly, during 2009-10, Rs.26.05 crore has been advanced against the target of Rs.40.00 croreuup to January ,2010.

4.

HOUSING LOANS

During the year 2007-08 Central Cooperative Banks in the State have advanced Rs.101.38 Crores against the target of Rs.80.00 crores. During 2008-09, Rs.88.32 crores has been disbursed against the target of Rs.100.00 crore. During 2009-10 Rs.70.69 crore has been disbursed up to January ,2010.

5.

NON FARM SECTOR LOANS

During 2007-08 Rs 49.50 crores were advanced under the scheme by DCCBs in the State of Punjab. During the year 2008-09, Rs.42.32 crores has been advanced. Similarly during 2009-10, Rs.31.68 crore has been advanced against the target of Rs.50.00 crore up to January ,2010.

6.

LOAN FOR CONSUMER DURABLES


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Under Consumer Durables Loan Scheme, Rs.68.58 crores has been advanced during 200809 against the target of Rs.72.00 crore. Similarly, during 2009-10, Rs.59.25 crore has been advanced up to January ,2010.

7.

PERSONAL LOAN SCHEME

Under Personal Loan Scheme, the Bank has advanced Rs.133.89 crore during the year 2008-09 against the target of Rs.120.00 crore. During 2009-10, Rs.107.91 crore have been disbursed up to January ,2010 against the target of Rs.125.00 crore.

8.

DEPOSIT MOBILIZATION

The deposit of Punjab State Coop. Bank and Central Cooperative Banks were Rs.7343.49 crores during the year 2007-08 whereas during 2008-09, the deposits were Rs. 8668.59 crores. During the year 2009-10 the deposits are Rs.8864.21 crore.During the year 20092010 the deposit of PSCB+CCBS ARE rS 9475.71 crore

9.

PROFITS

During 2008-09, there was a profit Rs.44.42 crore whereas 1 DCCB, namely; Amritsar was in loss.

10.

REDUCTION IN THE RATE OF INTEREST

Rate of Interest on Crop Loan has been reduced to 7.00% w.e.f. 01-04-2006.

FUTURE PLANNING

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Cooperatives are not unaffected by structural adjustments and globalisation of commodity market. As a result, Cooperative Banks are required to redesign their strategies for sustainability and growth. The economic reforms initiated by the government of India in 1991 have affected the Financial Institutions including the Cooperative Financial Institutions. These reforms aim at liberalisation and deregulation of Indian economy.

The Cooperative Banks of Punjab have accepted the reforms in Indian economy, especially, the financial reforms in right spirit. Since these Banks have mainly been providing credit to agriculture sector, changes in agricultural economy affect them more closely. The Banks envisage following scenario as a result of liberalised agricultural policy :

Liberalisation of agricultural policy would result in greater capital intensity and borrowed capital requirements of agriculturists. In order to induce diversification and produce quality products for international market. For this purpose, Punjab farmers would need greater credit support for improved technology, seeds and agro-inputs.

Liberalised agricultural policy would reverse the process of fragmentation of land holdings and would result in exodus of employment opportunities from agricultural sector to other sectors of economy. Such as small business enterprises, services and industrial sector.

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Liberalisation of agriculture would professionalise and modernise agriculture, thereby earning a status of industry attracting high skilled professionals in agriculture sector.

Liberalised agricultural economy would lead to a greater role of private research and development institutions in improving the productivity and quality of agricultural operations.

The liberalised agricultural policy would result in greater thrust on value addition in agriculture. Therefore, a great deal of thrust would be on agro-processing units.

The liberalised agricultural policy would bring greater thrust on export of raw and value added agro-products.

The liberalised agricultural economy would lead to sowing/planting of new crops. Leading to a great deal of crop diversification.

With this perspective, the Cooperative Credit Policy, both for short-term and long term requirements of the farmers, needs to be restructured. Accordingly, the Cooperative Banks in the State resolve to pursue credit policy in keeping with the following.

Vision

We will force the future challenges with grit and take every possible step for the development of our institution.

More steps will be taken to provide efficient services.

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Present customers will be retained and other customers will be attracted to increase market share.

Bank will attract maximum deposit (especially low cost deposit) to strengthen its financial resources so as to reduce its dependency upon NABARD.

Bank while diversifying its loan portfolio will provide medium term and long term loans to the maximum extent.

Every effort will be made to open account of all the farmers of the State. Bank will receive deposits from Farmers and meet all their credit needs.

Bank, for the sake of development of State, will strive hard to provide maximum and better services to customers especially farmers and for this wherever necessary, every effort will be made to modify the schemes.

Bank will prepare its business plan every year and by implementing it, goals set will be achieved.

Bank will professionalize and modernize the business.

DATA CENTER
A dedicated data Center is set up at Chandigarh for core banking solution to run continuously 24 x7 days with specific norms, specialized precision air- conditioning, gaseous fire fightingequipments, dedicated uninterrupted power supply, specific data cabling & internet connectivity, easy emergency services support, control panels ,Security System and monitoring systems. This Data Center is providing 24 x 7 days service to Apex Bank Chandigarh and all District Central Cooperative banks in Punjab State, where there are sophisticated servers and networking equipments are installed and will also provide
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service for ATMs to facilitate their customers. Bank has built a robust Data Center of the size of 1200 sq. ft (approx) that is sufficient to manage the 800 branches.

INTEREST RATES
Interest Rates on Term Deposits with effect from 23rd July 2011 Interest Rates on Term Deposits with effect from 19th May 2011 Period 7 Days to 14 Days 15 days to 45 days 46 Days to 90 Days 91 Days to 179 Days 180 to <1 year 1 year and above* Below Rs. 1.00 crore Rs 1.00 crore& above 3.00% 3.50% 4.25% 5.50% 6.50% 7.25% 3.00% 3.50% 3.50% 4.25% 6.50% 7.75%

*Interest Rate @ 0.50% over and above these rates to the Senior Citizens will be admissible on single Fixed Deposit Receipt of Rs. 5000/- and above for one year and above.

SCHEMES
DIFFERENT TYPES OF DEPOSIT ACCOUNTS Saving Bank A/C

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A Saving Bank A/c can be opened with an initial deposit of Rs.500/- without Cheque Book facility and Rs.1000/-with Cheque Book facility.

Eligible categories to open SB A/c

1. Any individuals 2. Joint A/c with others in the form of 'either or Survivor', 'Former or Survivor', and 'joint' etc. 3. Minors 4. Illiterate persons. 5. Blind Persons. 6. Joint Hindu family(HUF) 7. Coop Societies, Clubs, Societies, Associations etc.

The intending customer should visit the bank to fill in A/c opening forms with complete particulars such as parentage, occupation, address, latest two passport size photographs, residence such as copies of Voter card, Passport, Telephone/Electricity bill etc. and PAN or form No.60. The accounts are required to be introduced properly by the existing account holder of the bank or any person known to the bank.

Only 30 withdrawals are allowed per half year for a saving Bank A/c exceeding which service charges are levied by the bank.A minimum balance of Rs.500/- (without Cheque Book) and Rs.1000/- (with Cheque Book) has to be maintained in the account, otherwise services charges are levied on monthly Basis.At the time of opening the account, pass book is issued to the customer, which needs to be accompanied every time when payment is

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drawn through a withdrawals form. Maximum limit of withdrawl form is Rs. 20,000 with pass book. Nomination facility is also in these accounts. A depositor or depositors can nominate one Person only

Current A/c
A Current A/c can be opened with the initial deposit of Rs.5000/-. It can be opened in the name of individual, a Sole Proprietary Concern partnership firm, club, Religious Institution, Association Govt/ Semi Govt. Deptt., Local Bodies. As usual, all prospective applicants need to fill in the Account opening forms wherein following documents are required to be attached

1. Sole Proprietary Concern - Declaration of Sole Proprietorship 2. Partnership firm - Partnership Deed duly attested 3. Clubs, Schools, Societies, Association. 4. 1. Certificate of Registration 2. Copy of Bye Laws. 3. Memorandum of Association, if any. 4. Resolution of Board of Directors. 5. Limited Companies, Pvt. Ltd. Companies a. Certificate of incorporation b. Certificate of commencement of business c. Memorandum & article of Association

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d. Resolution of board. e. Latest Audited Balance Sheet & P&L Account Trusts . Instrument or Document of Trust

a. Resolution b. Certification of registration.

Introduction All Current A/c need to be introduced properly from another current account A/c holder only. Staff members are not allowed to introduce a Current A/c.

Minimum Balance A minimum balance of Rs.5000/- has to be maintained.

Photographs Recent Passport size photographs of the operator/s need to be affixed on the AOF. All payment is made by Cheques only. There is no restriction on the number of withdrawals unlike that in SB A/c Pass Book is issued at the time of opening of account. Statement of account can also be got issued.

Recurring Deposits A/c


A Recurring Deposit A/c can be opened with a certain initial deposit wherein a Depositor needs to deposit money by way of monthly installments over stipulated period. The period may be 2, 24, 36, 48, 60 month etc. On the expiry of the period, the accumulated amount

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along with interest is paid in lump sum. All individuals, jointly with others minors, blind/illiterate person etc. can open the A/c. Rate of interest on Recurring Deposits for various period will be the rate applicable on term deposit for that period.

Minimum monthly installment- Minimum monthly installment of the A/c is Rs.100/Maximum period is 10 years.

The intending customer should fill in A/c opening form with complete particulars such as parentage, occupation, address etc. Two passport size photographs are required to be affixed along with furnishing of residence proof such as copies of ration card, Voter card, Passport, Telephone/Electricity bill etc. and PAN or Form No.60. The account is required to be introduce properly by the existing A/c holder of the bank of any person know to the bank. On the expiry of the stipulated period, accumulated amount is paid to the customer.

Term Deposit A/c

Term Deposit is a deposit received by the bank for a specific fixed period which is withdraw able after expiry of said period.

Eligible categories to open Term Deposit A/c


Individual Joint A/c with other in the form of Either or Survivor , Former or Survivor, any one or survivor jointly etc.

Minors Illiterate persons

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Blind person Joint Hindu Family (HUF) Coop. Deptt, Clubs, Societies, Associations etc.

The intending customer should fill A/c opening form with complete particulars such as parentage, occupation, address etc. Two passport size photographs are required to be affixed along with furnishing of residence proof such as copies of Voter Card, Passport, Telephone/ Electricity bill etc and PAN or Form No.60. The account is required to be introduced properly by the existing A/c holder of the bank or any person known to the bank. Minimum Amount A minimum of Rs. 1000/- can be placed in a term deposit. Period Minimum & maximum period for which the amount is place in a term deposit are fixed by the bank from time to time. In a fixed deposit A/c, it usually ranges from 7 days to 120 months whereas in Long Term Deposit, The minimum period is 12 months.

Rate of Interest As fixed by the bank from time to time, keeping in view the market trends.

Mode of Payment of Interest Interest on Fixed Deposit can be fixed quarterly, half yearly or yearly etc. But in Long term deposit it is cumulative with quarterly rests with the result that is paid only on maturity. After opening the account in Computer, FDR is issued to the customer. A TDS is to be

30

deducted at source as per Income Tax Act; The mode of operation should be clearly mentioned while opening the A/c. Term deposit A/c can also be opened with Cheques drawn on the same branch or other banks.

Payments of FDR on due date After getting proper discharge on the back side of the FDR from the depositor payment can be made on due date.

Payment before due date For payment before due date, The FDR has to be discharged on the back side by all the operators.

Renewal of FDR FDRs can be got renewed on due date by mentioning the period for which they are to be renewed on the back side. TDS is deducted if interest is Rs.10000/- and more in a financial year prohibition for payment in cash The payment of FDR is prohibited to be made in each if the amount of the FDR along with interest exceeds Rs.20,000/- . So usually thepayment of FDR should be made either by way of Bank Draft/ Pay order or through an a/c.

Term Deposit A/c


Term Deposit is a deposit received by the bank for a specific fixed period which is withdraw able after expiry of said period.

Eligible categories to open Term Deposit A/c

Individual

31

Joint A/c with other in the form of Either or Survivor , Former or Survivor, any one or survivor jointly etc.

Minors Illeterate persons Blind person Joint Hindu Family (HUF) Coop. Deptt, Clubs, Societies, Associations etc.

The intending customer should fill A/c opening form with complete particulars such as parentage, occupation, address etc. Two passport size photographs are required to be affixed along with furnishing of residence proof such as copies of Voter Card, Passport, Telephone/ Electricity bill etc and PAN or Form No.60. The account is required to be introduced properly by the existing A/c holder of the bank or any person known to the bank. Minimum Amount A minimum of Rs. 1000/- can be placed in a term deposit. Period Minimum & maximum period for which the amount is place in a term deposit are fixed by the bank from time to time.In a fixed deposit A/c, it usually

ranges from 7 days to 120 months whereas in Long Term Deposit, The minimum period is 12 months. Rate of Interest As fixed by the bank from time to time, keeping in view the market trends

32

Mode of Payment of Interest Interest on Fixed Deposit can be fixed quarterly, half yearly or yearly etc. But in Long term deposit it is cumulative with quarterly rests with the result that is paid only on maturity.After opening the account in Computer, FDR is issued to the customer. A TDS is to be deducted at source as per Income Tax Act; The mode of operation should be clearly mentioned while opening the A/c.Term deposit A/c can also be opened with Cheques drawn on the same branch or other banks. Payments of FDR on due date After getting proper discharge on the back side of the FDR from the depositor payment can be made on due date.Payment before due date For payment before due date, The FDR has to be discharged on the back side by all the operators. Renewal of FDR FDRs can be got renewed on due date by mentioning the period for which they are to be renewed on the back side.TDS is deducted if interest is Rs.10000/and more in a financial year prohibition for payment in cash The payment of FDR is prohibited to be made in each if the amount of the FDR along with interest exceeds Rs.20,000/- . So usually the payment of FDR should be made either by way of Bank Draft/ Pay order or through an a/c.

Saving Bank No Frill A/c


The No Frill A/c can be opened by any person without furnishing any resident proof or any proper introduction. The A/c Can be opened with a minimum amount of Rs.10 /- only. In such accounts, the Balance should not exceed Rs. 50000/- otherwise, it will become an ordinary SB A/c. No

33

cheque book is allowed to be issued to the customer. The condition of maintaining any minimum balance in this A/c is waived off. Lockers A/c

Facility of Lockers Lockers of four different sizes viz. small, medium, large and extra-large are available in the bank which can be hired by any prospective customer for safe custody of their articles.

A prospective customers who wants to hire a locker, has to fill in embossing form and specimen signature card. He can hire a locker either in his individual capacity or jointly with others. For getting a locker, the locker hire must open a SB A/c with the bank so that annual lock rent can be charged by debiting that A/c . He has to keep a lien or minimum balance in that account depending upon the size of the locker hired. The annual rates of Locker rent and the lien are as follows. Size Small Medium Large Extra Large Locker Rs. 500/Rs. 1000/Rs. 2000/Rs. 4000/Rent Lien Rs.1500/Rs.2500/Rs.5000/Rs. 10000/-

34

Penalties for default in Locker Rent Small Medium Large Extra Large Rs. 50/Rs. 100/Rs. 150/Rs. 300/Per quarter do do do

Term Deposit for Locker A minimum of Rs. 10,000/- has to be placed in Term Deposit bya locker hirer as per RBI guidelines.

Nomination must for Individual Locker Holders A Single locker holder must nominate someone in his locker A/c to receive the articles lying in his locker after his/her death.

35

CHAPTER 3: REVIEW OF LITERATURE


Microfinance, according to Otero (1999, p.8) is the provision of financial services to lowincome poor and very poor self-employed people. These financial services according to Ledgerwood (1999) generally include savings and credit but can also include other financial services such as insurance and payment services. Schreiner and Colombet (2001, p.339) define microfinance as the attempt to improve access to small deposits and small loans for poor households neglected by banks. Therefore, microfinance involves the provision of financial services such as savings, loans and insurance to poor people living in both urban and rural settings who are unable to obtain such services from the formal financial sector.In the literature, the terms microcredit and microfinance are often used interchangeably, but it isimportant to highlight the difference between them because both terms are often confused.Sinha(1998, p.2) states microcredit refers to small loans, whereas microfinance is appropriate where NGOs and MFIs1 supplement the loans with other financial services (savings, insurance, etc). Therefore microcredit is a component of microfinance in that it involves providing credit to the poor, but microfinance also involves additional non-credit financial services such as savings, insurance, pensions and payment services (Okiocredit, 2005). Microfinance has a very important role to play in development according to proponents of microfinance. UNCDF (2004) states that studies have shown that microfinance plays three key roles in development. It: _ helps very poor households meet basic needs and protects against risks, _ is associated with improvements in household economic welfare,

36

_ helps to empower women by supporting womens economic participation and so promotes gender equity. Otero (1999, p.10) illustrates the various ways in which microfinance, at its core combats poverty8. She states that microfinance creates access to productive capital for the poor, which together with human capital, addressed through education and training, and social capital, achieved through local organisation building, enables people to move out of poverty (1999). By providing material capital to a poor person, their sense of dignity is strengthened and this can help to empower the person to participate in the economy and society (Otero, 1999). The aim of microfinance according to Otero (1999) is not just about providing capital to the poor to combat poverty on an individual level, it also has a role at an institutional level. It seeks to create institutions that deliver financial services to the poor, who are continuously ignored by the formal banking sector. Littlefield and Rosenberg (2004) state that the poor are generally excluded from the financial services sector of the economy so MFIs have emerged to address this market failure. By addressing this gap in the market in a financially sustainable manner, an MFI can become part of the formal financial system of a country and so can access capital markets to fund their lending portfolios, allowing them to dramatically increase the number of poor people they can reach (Otero, 1999). More recently, commentators such as Littlefield, Murduch andHashemi (2003), Simanowitz and Brody (2004) and the IMF (2005) have commented on the critical role of microfinance in achieving the Millennium Development Goals9. Simanowitz and Brody (2004, p.1) state, Microfinance is a key strategy in reaching the MDGs and in building global financial systems that meet the needs of the most poor people. Littlefield,

37

MurduchandHashemi (2003) state microfinance is a critical contextual factor with strong impact on the achievements of the MDGsmicrofinance is unique among development interventions: it can deliver social benefits on an ongoing, permanent basis and on a large scale. Referring to various case studies, they show how microfinance has played a role in eradicating poverty, promoting education, improving health and empowering women (2003). Wright (2000,p.6) states that much of the scepticism of MFIs stems from the argument that microfinance projects fail to reach the poorest, generally have a limited effect on incomedrive women into greater dependence on their husbands and fail to provide additional services desperately needed by the poor. In addition, Wright says that many development practitioners not only find microfinance inadequate, but that it actually diverts funding from more pressing or important interventions such as health and education (2000, p.6). As argued by Navajas et al (2000), there is a danger that microfinance may siphon funds from other projects that might help the poor more. They state that governments and donors should know whether the poor gain more from microfinance, than from more health care or food aid for example. Therefore, there is a need for all involved in microfinance and development to ascertain what exactly has been the impact of microfinance in combating poverty. Considerable debate remains about the effectiveness of microfinance as a tool for directly reducing poverty, and about the characteristics of the people it benefits (Chowdhury, Mosley andSimanowitz, 2004).

38

Sinha (1998) argues that it is notoriously difficult to measure the impact of microfinance programmes on poverty. This is so she argues, because money is fungible and therefore it is difficult to isolate credit impact, but also because the definition of poverty, how it is measured and who constitute the poor are fiercely contested issues (1998, p.3). Poverty is a complex issue and is difficult to define, as there are various dimensions to poverty. For some, such as World Bank, poverty relates to income, and poverty measures are based on the percentage of people living below a fixed amount of money, such as US$1 dollar a day (World Bank, 2003).

39

CHAPTER 4: RESEARCH METHODOLOGY


The research study is descriptive in nature as it is preplanned and structured. Major methods employed in descriptive research are SURVEY & OBSERVATIONS. The methodology adopted for studying the objectives was surveying the existing and potential in the city of Bhawanigarh. The study was conducted in one part. OBJECTIVES OF THE STUDY The microfinance industry has grown rapidly during the last decade in breadth, depth, and scope of outreach. The rapid growth seems to continue, given the massive unserved and underserved market. Surprisingly many commercial banks in developing countries are beginning to examine the microfinance market. Stiff banking competition in many countries has forced some to diversify into newmarkets. Although the initial resources for loansfrequently came from donor-funded credit programs, commercial banks in time began to draw on their owndeposit sources for a growing share of their total funds for microloans.

The Main objectives of the study are,

To study the use of financial sources. To study the perceived satisfaction level of women microfinance borrowers. To evaluate the respondents preference for the formal and the informal sources of finance.

40

To assess the level of satisfaction of the respondents with regards to the microfinance services.

To analyze the level of impact of the microfinance services on the lives of the respondents.

COLLECTION OF DATA The data for the study is comprised of primary as well as secondary data. To satisfy the objectives, the primary data has been collected with the help of a structured questionnaire. A convenient randomized sample of 110 women respondents was selected.

i)

PRIMARY DATA: - From those who have taken housing loans through Questionnaire

ii)

SECONDARY DATA: - From various websites - Annual reports, Journals, Magazines etc

The survey method involves a structured questionnaire given to respondents and designed to elicit specific information. In structured data collection a formal questionnaire is prepared and questions are asked in prearranged order.

SAMPLING TECHNIQUE Convenience Sampling- A non probability sampling technique that attempts to obtain a sample of convenient elements.

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SAMPLE SIZE- 110 respondents Most of the participants and non-participants are married women in the age group of 26 to 40 years.

AREA OF THE STUDY The study has been carried out in the rural area of the three districts of Punjab namely Ghanour, Ulana, Sialu and Sarala.

LIMITATIONS
The research has been conducted in a limited area. The internet information can be irrelevant. Time has been a major constraint. The possibility of biased responses cant be ruled out. Lack of availability of full information.

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CHAPTER 5: DATA ANALYSIS AND NTERPRETATION


1. Age Table: 1 Age less than 20 20-40 40 & above Total Graph: 1 Frequency 20 76 14 110 Percentage 18 69 13 100

Age
less than 20 20-40 40 & above

13%

18%

69%

Interpretation: According to 110 respondents 18% of them are less than 20 year of age, 69% of them are between 20-40 years of age and rest 13% of them are 4o and above of age.

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2. Marital status Table: 2 Marital status Single Married Widow Divorcee Total Graph: 2 Marital Status Single Married 4% 7% 41% Widow Divorcee Frequency 45 53 8 4 110 Percentage 41 48 7 4 100

48%

Interpretation: According to 110 respondents 41% of them are single, 48% of them are married, 7% of them are widow and rest 4% of them are divorcee.
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3. Type of family Table: 3 Type of family Joint Nuclear Extended Total Graph: 3 Frequency 68 38 4 110 Percentage 62 34 4 100

Type of Family
Joint 4% 34% 62% Nuclear

Interpretation: According to 110 respondents 62% of them are in joint family 34% of them are in nuclear family and rest 4% of them are in extended family.

45

4. Education Table: 4 Education Illiterate Matric Higher Graduation Post graduation Vocational Other Total Graph: 4 Frequency 28 44 26 12 0 0 0 110 Percentage 25 40 24 11 0 0 0 100

Education
Illiterate Graduation Matric Post graduation
0% 0% 0% 11% 24% 25%

Higher Vocational

40%

Interpretation: According to 110 respondents 25% of them are illiterate, 40% of them have done matric, 24% of them have done higher education, and rest 11% of them is graduates

46

5. Occupation Table: 5 Frequency Self Employed Labor Housewife Professional Family owned business Retired Total Graph: 5 29 57 24 0 0 0 110 Percentage 26 52 22 0 0 0 100

Occupation
Self Employed Housewife Family owned business 0% 0% 0% 22% 26% Labor Professional Retired

52%

Interpretation: According to 110 respondents 26% of them are self employed, 52% of them are labor and rest 22% of them are housewife.

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6. Income Table: 6 Income (Monthly) 0-2000 2000-4000 4000-6000 6000 & above Total Graph: 6 Frequency 19 39 25 27 110 Percentage 17 35 23 25 100

Monthly Income
0-2000 2000-4000 4000-6000 6000 & above

25%

17%

23%

35%

Interpretation: According to 110 respondents 17% of them monthly income is 0-2000, 35% of them monthly income is 2000-4000, 23% of them monthly income is 4000-6000 and rest 25% of them monthly income is 6000 and above
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7. Use of Financial Sources Table: 7

Savings Frequenc Type y Percentag e Type

Credit Frequenc y Percentag e

Formal Sources

Formal Sources

Bank A/C Post Saving A/C Office

46

46.9

Banks

12

22.2

18

18.4

Co-operatives

3.7

Semi-formal Sources MFIs/SHGs savings Informal Sources Neighborhood Group savings 4 4.1 2 2.1

Semi-formal Sources MFIs/NGOs/SH Gs Informal Sources 0 0

Relative/Friends

24

44.5

Gold/Silver

7.1

Employer

10

18.5

Cash at home

21

21.4

Colleagues

11.1

Total

98

100

Total

54

100

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PERCEIVED SATISFACTION LEVEL OF THE WOMEN MICROFINANCE BORROWERS ACTIVITIES OF HIGH SATISFACTION 8. Amount of loan Table: 8 Highly Satisfied Amount availed Graph: 8 of loan 38 2 6 8 0 Satisfied Neutral Dissatisfied Highly Dissatisfied

Interpretation: According to 54 respondents 70% of the women microfinance borrowers are highly satisfied with the amount of loan availed, 4% of the women microfinance borrowers are satisfied with the amount of loan availed, 11% of the women microfinance borrowers are neutral with the amount of loan availed, and rest 15% of the women microfinance borrowers are dissatisfied with the amount of loan availed.

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9. Loan Duration Table: 9 Highly Satisfied Loan Duration Graph: 9 32 4 10 6 2 Satisfied Neutral Dissatisfied Highly Dissatisfied

Interpretation: According to 54 respondents 59% of the women microfinance borrowers are highly satisfied with the loan duration, 7% of the women microfinance borrowers are satisfied with the loan duration, 19% of the women microfinance borrowers are neutral with the loan duration, 11% of the women microfinance borrowers are dissatisfied with the loan duration, and rest 4% of the women microfinance borrowers are highly dissatisfied with the loan duration. ACTIVITIES OF MODERATE SATISFACTION 10.Timings to access Table: 10 Highly Highly

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Timings to access credit Graph: 10 30 0 12 8 4

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Timings to access credit


Highly Satisfied Neutral Highly Dissatisfied 7% Satisfied Dissatisfied

15%
22% 56%

0%

Interpretation: According to 54 respondents 56% of the women microfinance borrowers are highly satisfied with the Timings to access credit, 22% of the women microfinance borrowers are neutral with the Timings to access credit, 15% of the women microfinance borrowers are dissatisfied with the Timings to access credit Timings to access credit, and rest 7% of the women microfinance borrowers are highly dissatisfied with the Timings to access credit. 11.Transport cost to visit a bank branch Table: 11 Highly Highly

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Transportation cost to visit a bank branch Graph: 11 26 6 4 16 2

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Transportation cost to visit a bank branch


Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

4% 30% 48%

7% 11%

Interpretation: According to 54 respondents 48% of the women microfinance borrowers are highly satisfied with the transport cost to visit a bank branch, 11% of the women microfinance borrowers are satisfied with the transport cost to visit a bank branch, 7% of the women microfinance borrowers are neutral with the transport cost to visit a bank branch, 30% of the women microfinance borrowers are dissatisfied with the transport cost to visit a bank branch, and rest 4% of the women microfinance borrowers are highly dissatisfied with the transport cost to visit a bank branch. 12.Enough information is provided by the provider Table: 12 Highly Satisfie d Enough information is 20 provided by the provider Graph: 12 Satisfie d 6 Neutra l 8 Dissatisfie d 14 Highly Dissatisfie d 6

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Enough information is provided by the provider


Highly Satisfied Neutral Highly Dissatisfied 11% 26% 15% 11% 37% Satisfied Dissatisfied

Interpretation: According to 54 respondents 37% of the women microfinance borrowers are highly satisfied with the information provided by the provider, 11% of the women microfinance borrowers are satisfied with the information provided by the provider, 15% of the women microfinance borrowers are neutral with the information provided by the provider, 26% of the women microfinance borrowers are dissatisfied with the information provided by the provider, and rest 11% of the women microfinance borrowers are highly dissatisfied with the information provided by the provider.

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13. Rate of Interest Table: 13 Highly Highly Satisfied Rate of interest Graph: 13 22 Satisfied 0 Neutral 12 Dissatisfied Dissatisfied 16 4

Rate of interest
Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied Neutral

7% 30% 41%

22% 0%

Interpretation: According to 54 respondents 41% of the women microfinance borrowers are highly satisfied with the rate of Interest, 22% of the women microfinance borrowers are neutral with the rate of Interest, 30% of the women microfinance borrowers are dissatisfied with the rate of Interest, and rest 7% of the women microfinance borrowers are highly dissatisfied with the rate of Interest.
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14.Time taken to get the loan sanctioned Table: 14 Highly Satisfied Time taken to get the loan 20 sanctioned Graph: 14 Highly Satisfied Neutral Dissatisfied Dissatisfied

12

16

Time taken to get the loan sanctioned


Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

7% 37% 30%

22% 4%

Interpretation: According to 54 respondents 37% of the women microfinance borrowers are highly satisfied with the Time taken to get the loan sanctioned, 4% of the women microfinance borrowers are satisfied with the Time taken to get the loan sanctioned, 22% of the women microfinance borrowers are neutral with the Time taken to get the loan sanctioned, 30% of the women microfinance borrowers are dissatisfied with the Time

56

taken to get the loan sanctioned, and rest 7% of the women microfinance borrowers are highly dissatisfied with the Time taken to get the loan sanctioned. 15.Suitable products are available as per needs Table: 15 Highly Highly Satisfied Satisfied Neutral Dissatisfied Dissatisfied Suitable products available as per needs Graph: are 14 8 14 16 2

Suitable products are available as per needs


Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied 4% 29% 26% Neutral

15% 26%

Interpretation: According to 54 respondents 26% of the women microfinance borrowers are highly satisfied with theSuitable products are available as per needs, 15% of the women microfinance borrowers are satisfied with the Suitable products are available as per needs, 26% of the women microfinance borrowers are neutral with the Suitable products are available as per needs, 29% of the women microfinance borrowers are dissatisfied with
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the Suitable products are available as per needs, and rest 4% of the women microfinance borrowers are highly dissatisfied with the Suitable products are available as per needs. 16.Compulsory saving requirement Table: 16 Highly Highly Satisfied Satisfied Neutral Dissatisfied Dissatisfied Compulsory requirement Graph: 16 saving 18 2 14 16 4

Compulsory saving requirement


Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied 7% 33% 30% Neutral

26% 4%

Interpretation: According to 54 respondents 33% of the women microfinance borrowers are highly satisfied with thecompulsory saving requirement, 4% of the women microfinance borrowers are satisfied with the compulsory saving requirement, 26% of the women microfinance borrowers are neutral with the compulsory saving requirement, 30% of the women microfinance borrowers are dissatisfied with the compulsory saving

58

requirement, and rest 7% of the women microfinance borrowers are highly dissatisfied with the compulsory saving requirement. 17.Requirement of guarantee Table: 17 Highly Satisfied Requirement guarantee of 20 2 8 16 8 Satisfied Neutral Dissatisfied Highly Dissatisfied

Graph: 17

Requirement of guarantee
Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied 15% 37% Neutral

29%

15% 4%

Interpretation: According to 54 respondents 37% of the women microfinance borrowers are highly satisfied with therequirement of guarantee, 4% of the women microfinance
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borrowers are satisfied with the requirement of guarantee, 15% of the women microfinance borrowers are neutral with the requirement of guarantee, 29% of the women microfinance borrowers are dissatisfied with the requirement of guarantee, and rest 15% of the women microfinance borrowers are highly dissatisfied with the requirement of guarantee. 18. Behavior of bank staff Table: 18 Highly Satisfied Behavior of bank staff 16 6 8 18 6 Satisfied Neutral Dissatisfied Highly Dissatisfied

Graph: 18

Interpretation: According to 54 respondents 30% of the women microfinance borrowers are highly satisfied with thebehavior of bank staff, 11% of the women microfinance borrowers are satisfied with the behavior of bank staff, 15% of the women microfinance borrowers are neutral with the behavior of bank staff, 33% of the women microfinance borrowers are dissatisfied with the behavior of bank staff, and rest 11% of the women microfinance borrowers are highly dissatisfied with the behavior of bank staff. 19. Complaints/problems are well entertained Table: 19

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Highly Satisfie d Complaints/problems are 18 well entertained Graph: 19

Satisfie d 2

Neutra l 10

Dissatisfie d 18

Highly Dissatisfie d 6

Complaints/problems are well entertained


Highly Satisfied Neutral Highly Dissatisfied Satisfied Dissatisfied

11% 33% 19%

33%

4%

Interpretation: According to 54 respondents 33% of the women microfinance borrowers are highly satisfied with thecomplaints/problems are well entertained, 4% of the women microfinance borrowers are satisfied with the complaints/problems are well entertained, 19% of the women microfinance borrowers are neutral with the complaints/problems are well entertained, 33% of the women microfinance borrowers are dissatisfied with the complaints/problems are well entertained, and rest 11% of the women microfinance borrowers are highly dissatisfied with the complaints/problems are well entertained. 20. Consequences of non-repayments Table: 20

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Highly Satisfied Consequences of 14 non-repayments Graph: 20

Satisfie d 6

Neutral 10

Dissatisfie d 18

Highly Dissatisfied 6

Consequences of non-repayments
Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied Neutral

11%

26%

33% 19%

11%

Interpretation: According to 54 respondents 26% of the women microfinance borrowers are highly satisfied with theconsequences of non-repayments, 11% of the women microfinance borrowers are satisfied with the consequences of non-repayments, 19% of the women microfinance borrowers are neutral with the consequences of non-repayments, 33% of the women microfinance borrowers are dissatisfied with the consequences of nonrepayments, and rest 11% of the women microfinance borrowers are highly dissatisfied with the consequences of non-repayments. ACTIVITIES OF SLIGHT SATISFACTION 21. Convenient procedure
62

Table: 21 Highly Satisfied Convenient procedure Graph: 21 10 Satisfied 4 Neutral 12 Dissatisfied 20 Highly Dissatisfied 8

Highly Satisfied Neutral Highly Dissatisfied


15%

Convenient procedure

Satisfied Dissatisfied

19% 7%

37%

22%

Interpretation: According to 54 respondents 19% of the women microfinance borrowers are highly satisfied with theconvenient procedure, 7% of the women microfinance borrowers are satisfied with the convenient procedure, 22% of the women microfinance borrowers are neutral with the convenient procedure, 37% of the women microfinance borrowers are dissatisfied with the convenient procedure, and rest 15% of the women microfinance borrowers are highly dissatisfied with the convenient procedure. 22. Terms and conditions Table: 22 Highly Satisfied Neutral Dissatisfied Highly

63

Satisfied Terms conditions Graph: 22 and 12 2 10 22

Dissatisfied

Terms and conditions


Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied Neutral

15%

22% 4% 18%

41%

Interpretation: According to 54 respondents 22% of the women microfinance borrowers are highly satisfied with theterms and conditions, 4% of the women microfinance borrowers are satisfied with the terms and conditions, 18% of the women microfinance borrowers are neutral with the terms and conditions, 41% of the women microfinance borrowers are dissatisfied with the terms and conditions, and rest 15% of the women microfinance borrowers are highly dissatisfied with the terms and conditions. 23. Demand for collaterals Table: 23 Highly Satisfied Neutral Dissatisfied Highly

64

Satisfied Demand collaterals Graph: 23 for 14 0 8 20

Dissatisfied

12

Demand for collaterals


Highly Satisfied Neutral
22%

Satisfied Dissatisfied
26% 0% 15%

37%

Interpretation: According to 54 respondents 26% of the women microfinance borrowers are highly satisfied with thedemand for collaterals, 15% of the women microfinance borrowers are neutral with the demand for collaterals, 37% of the women microfinance borrowers are dissatisfied with the demand for collaterals, and rest 22% of the women microfinance borrowers are highly dissatisfied with the demand for collaterals. 24. Loan utilization check Table: 24 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

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Loan check

utilization 10 0 14 24 6

Graph: 24

Loan utilization check


Highly Satisfied Satisfied Neutral

Dissatisfied

Highly Dissatisfied
11% 19% 0%

44%

26%

Interpretation: According to 54 respondents 19% of the women microfinance borrowers are highly satisfied with theLoan utilization check, 26% of the women microfinance borrowers are neutral with the Loan utilization check, 44% of the women microfinance borrowers are dissatisfied with the Loan utilization check, and rest 11% of the women microfinance borrowers are highly dissatisfied with the Loan utilization check. 25. File charges Table: 25 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

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File charges Graph: 25 10 2 12 16 14

File charges
Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied Neutral

18% 26% 30% 22%

4%

Interpretation: According to 54 respondents 18% of the women microfinance borrowers are highly satisfied with thefile charges, 4% of the women microfinance borrowers are satisfied with the file charges, 22% of the women microfinance borrowers are neutral with the file charges, 30% of the women microfinance borrowers are dissatisfied with the file charges, and rest 26% of the women microfinance borrowers are highly dissatisfied with the file charges. 26. Repayment policy Table: 26 Highly Satisfied Repayment policy 10 0
67

Highly Satisfied Neutral Dissatisfied Dissatisfied

10

22

12

Graph: 26

Repayment policy
Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied Neutral

22%

18%

0% 19%

41%

Interpretation: According to 54 respondents 18% of the women microfinance borrowers are highly satisfied with therepayment policy, 19% of the women microfinance borrowers are neutral with the repayment policy, 41% of the women microfinance borrowers are dissatisfied with the repayment policy, and rest 22% of the women microfinance borrowers are highly dissatisfied with the repayment policy. LEVEL OF IMPACT ON THE WOMEN MICROFINANCE BORROWERS ACTIVITIES OF MODERATE IMPACT 27. Improvements in Social Status Table: 27 Satisfied Neutral Dissatisfied

Highly

Highly

68

Satisfied Improvement in social status 20 12 8 14

Dissatisfied 0

Graph: 27

Improvement in social status


Highly Satisfied Satisfied Neutral 0% 26% 37% Dissatisfied Highly Dissatisfied

15% 22%

Interpretation: According to 54 respondents 37% of the women microfinance borrowers are highly satisfied with moderately improved Social Status, 22% of the women microfinance borrowers are satisfied with moderately improved Social Status, 15% of the women microfinance borrowers are neutral with moderately improved Social Status, and rest 26% of the women microfinance borrowers are dissatisfied with moderately improved Social Status. 28. Poverty reduction

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Table: 28 Highly Satisfied Poverty reduction 18 Satisfied 10 Neutral 16 Dissatisfied 10 Highly Dissatisfied 0

Graph: 28

Poverty reduction
Highly Satisfied Satisfied Neutral 0% 19% 33% Dissatisfied Highly Dissatisfied

30% 18%

Interpretation: According to 54 respondents 33% of the women microfinance borrowers are highly satisfied with the poverty reduction, 18% of the women microfinance borrowers are satisfied with the poverty reduction, 30% of the women microfinance borrowers are neutral with the poverty reduction, and rest 19% of the women microfinance borrowers are dissatisfied with the poverty reduction. 29. Improvement in consumption leave Table: 29

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Highly

Highly

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Improvement consumption leave Graph: 29 in 16 12 10 16 0

Improvement in consumption leave


0% Highly Satisfied Dissatisfied 30% Satisfied Highly Dissatisfied 30% Neutral

18%

22%

Interpretation: According to 54 respondents 30% of the women microfinance borrowers are highly satisfied with improvement in consumption leave, 22% of the women microfinance borrowers are satisfied with improvement in consumption leave, 18% of the women microfinance borrowers are neutral with improvement in consumption leave, and rest 30% of the women microfinance borrowers are dissatisfied with improvement in consumption leave. 30. Recognition in family Table: 30

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Highly Satisfied Recognition family Graph: 30 in 14 10 12 18 Satisfied Neutral Dissatisfied

Highly Dissatisfied

Recognition in family
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

0% 26%

33%

19% 22%

Interpretation: According to 54 respondents 26% of the women microfinance borrowers are highly satisfied with recognition in family, 19% of the women microfinance borrowers are satisfied with recognition in family, 22% of the women microfinance borrowers are neutral with recognition in family, and rest 33% of the women microfinance borrowers are dissatisfied with the recognition in family. 31. Improvement in income level

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Table: 31 Highly Satisfied Improvement in income level Graph: 31 12 16 12 14 0 Satisfied Neutral Dissatisfied Highly Dissatisfied

Improvement in income level


Highly Satisfied Satisfied Neutral 0% 26% 22% Dissatisfied Highly Dissatisfied

22%

30%

Interpretation: According to 54 respondents 22% of the women microfinance borrowers are highly satisfied with the improvement in income level, 30% of the women microfinance borrowers are satisfied with the improvement in income level, 22% of the women microfinance borrowers are neutral with the improvement in income level, and rest 26% of the women microfinance borrowers are dissatisfied with the improvement in income level. 32. Increase in decision making powers
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Table: 32 Highly Satisfie d Increase in decision making powers Graph: 32 16 8 10 16 0 Satisfie d Neutra l Dissatisfie d Highly Dissatisfie d

Increase in decision making powers


Highly Satisfied Satisfied Neutral 0% 32% 32% Dissatisfied Highly Dissatisfied

20%

16%

Interpretation: According to 54 respondents 32% of the women microfinance borrowers are highly satisfied with the increase in decision making powers, 16% of the women microfinance borrowers are satisfied with the increase in decision making powers, 20% of the women microfinance borrowers are neutral with the increase in decision making powers, and rest 32% of the women microfinance borrowers are dissatisfied with the increase in decision making powers. 33. Confidence building

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Table: 33 Highly Satisfied Confidence building Graph: 33 12 10 14 18 0 Satisfied Neutral Dissatisfied Highly Dissatisfied

Confidence building
Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied 0% 33% 22% Neutral

19% 26%

Interpretation: According to 54 respondents 22% of the women microfinance borrowers are highly satisfied with the confidence building, 19% of the women microfinance borrowers are satisfied with the confidence building, 26% of the women microfinance borrowers are neutral with the confidence building, and rest 33% of the women microfinance borrowers are dissatisfied with the confidence building. 34. Improved communication skills

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Table: 34 Highly Highly

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Improved communication skills Graph: 34 10 10 18 16 0

Improved communication skills


Highly Satisfied Satisfied Neutral 0% 30% 18% 19% Dissatisfied Highly Dissatisfied

33%

Interpretation: According to 54 respondents 18% of the women microfinance borrowers are highly satisfied with the improved communication skills, 19% of the women microfinance borrowers are satisfied with the improved communication skills, 33% of the women microfinance borrowers are neutral with the improved communication skills, and rest 30% of the women microfinance borrowers are dissatisfied with the improved communication skills.

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ACTIVITIES OF SLIGHT IMPACT 35. Awareness of social issues Table: 35 Highly Satisfied Awareness of social issues Graph: 35 8 10 14 14 0 Satisfied Neutral Dissatisfied Highly Dissatisfied

Awareness of social issues


Highly Satisfied Dissatisfied Satisfied Highly Dissatisfied 0% 30% 17% Neutral

22%

31%

Interpretation: According to 54 respondents 17% of the women microfinance borrowers are highly satisfied with the awareness of social issues, 22% of the women microfinance borrowers are satisfied with the awareness of social issues, 31% of the women microfinance borrowers are neutral with the awareness of social issues, and rest 30% of the women microfinance borrowers are dissatisfied with the awareness of social issues.

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CHAPTER 6: FINDINGS& SUGGESTIONS FINDINGS


Most of the women microfinance borrowers are highly satisfied with the amount of loan availed and highly satisfied with the loan duration.

Most of the women microfinance borrowers are highly satisfied with the Timings to access credit.

Most of the women microfinance borrowers are highly satisfied with the transport cost to visit a bank branch and with the information provided by the provider.

Most of the women microfinance borrowers are highly satisfied with the rate of Interest.

Most of the women microfinance borrowers are highly satisfied with the Time taken to get the loan sanctioned.

Most of the women microfinance borrowers are dissatisfied with the Suitable products are available as per needs.

Most of the women microfinance borrowers are highly satisfied with the compulsory saving requirement and with the requirement of guarantee.

Most of the women microfinance borrowers are dissatisfied with the behavior of bank staff.

Most of the women microfinance borrowers are highly satisfied with the complaints/problems are well entertained.

Most of the women microfinance borrowers are dissatisfied with the consequences of non-repayments,.
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Most of the women microfinance borrowers are dissatisfied with the convenient procedure and with the terms and conditions.

Most of the women microfinance borrowers are dissatisfied with the demand for collaterals and the Loan utilization check.

Most of the women microfinance borrowers are dissatisfied with the file charges. Most of the women microfinance borrowers are dissatisfied with the repayment policy.

Most of the women microfinance borrowers are highly satisfied with moderately improved Social Status.

Most of the women microfinance borrowers are highly satisfied with the poverty reduction

Most of the women microfinance borrowers are highly satisfied with improvement in consumption leave, 22% of the women microfinance borrowers are satisfied with improvement in consumption

Most of the women microfinance borrowers are dissatisfied with the recognition in family.

Most of the women microfinance borrowers are satisfied with the improvement in income level.

Most of the women microfinance borrowers are highly satisfied with the increase in decision making powers.

Most of the women microfinance borrowers are dissatisfied with the confidence building.

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Most of the women microfinance borrowers are neutral with the improved communication skills.

Most of the women microfinance borrowers are neutral with the awareness of social issues.

SUGGESTIONS
Donors should argue for the elimination of all repressive financial regulations, such as interestrate ceilings and unusually burdensome reserve requirements or detailed directed creditschemes. Microfinance can and should be able to emerge and compete in open niche marketsas long as formal lenders in financial markets are free to charge interest rates that cover theiroperating costs, risks, and the opportunity cost of capital.

Donors should encourage policy reform creating a prudential regulatory framework thatrecognizes the idiosyncratic features of institutions engaged in providing

microfinanceservices.

Donors should urge more rigorous contract enforcement institutions in the countries in which microfinance initiatives are operating. Whereas a number of microfinance

institutionsemphasize group-loan products, many promote individual loans, especially the commercialbank community, and a few attempt to deal in both products.

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CONCLUSION
This training report made an attempt to understand the role of microfinance in Punjab with having training in Cooperative Bank. No doubt, microfinance has been effectively contributing to women empowerment significantly to their family development in terms of getting credit for housing repairs, education and marriage of their children and also for consumption purpose. The study found good saving habit among females as maximum number of the respondents was having saving bank accounts (46.9 per cent) and post office savings (18.4 per cent) but still there are so many obstacles in the way of financial inclusion of women such as the lack of awareness regarding micro financing services being provided by the banks as 80.7 per cent of the respondents were unaware of the banks opening of zero minimum balance saving bank account. The dissatisfaction from various service activities followed by banks such as requirement of collaterals, inconvenient procedural formalities, loan utilization checks and difficult repayment terms is also one of the major reasons for a significant proportion of the rural women to prefer informal sources of finance(74.1 per cent of the respondents availing credit) instead of the formal ones. They find an ease in getting finance from their personal contacts. This attitude needs to be changed. The banks should introduce some proactive strategies primarily aiming at spreading more awareness of the micro financing services available with the banks and encouraging the use of such services. More interestingly, despite of the prevailing dominant SHG-Bank linkage model, the study found very negligible use of the SHGs services by the respondents (2.1 per cent in case of

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savings). These SHGs need to be regulated and supervised in order to keep them actively engaged in the microfinance movement. Moreover the banks should make provision of more services under the microfinance umbrella as per the requirements of women. Some attitudinal changes are required on part of the finance providers also to break the age old stigma of the gender discrimination. Women should be encouraged to take up entrepreneurial activities by giving them proper guidance and developing their business skills. Women empowerment to a great extent depends upon the economic empowerment of women and microfinance can prove to be a very powerful instrument of women empowerment in the times to come.

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BIBLIOGRAPHY
Books and Journals: Bhatnagar, A. (2008) Rural Microfinance and Microenterprise, Concept Publishing Compony, New Delhi. Gupta, M.S. 2008. Micro Finance through Self Help Groups: An emerging Horizon for Rural Development, Indian Journal of Commerce, 61(3): pp. 36-47. Kabeer, Naila. 2005. Is Microfinance a Magic Bullet for Womens Empowerment: Analysis of Findings from South Asia, Economic and Political Weekly, 40(44): pp. 4709-4718. Pandey, Manas. 2008. Micro Financing: A Blessing for the Poor, The Indian Journal of Commerce, 61(3): pp. 48-52. Satish, P. 2005. Mainstreaming of Indian Microfinance, Economic and Political weekly, 40(17): pp. 1731-1739.

Web Portal: http://www.ijeronline.com/documents/volumes/Vol2issue2/ijer20110202%285%29.pdf http://undp.org.in/sites/default/files/reports_publication/Microfinance_CommunitySynthesisDocument.pdf http://www.aadharindia.org/microfinance.html http://femsustainablesocialsolutions.in/index.php?q=content/adaption-microfinancemodels-punjab http://www.indianmba.com/Occasional_Papers/OP201/op201.html

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http://shodhganga.inflibnet.ac.in/bitstream/10603/3031/15/15_chapter%207.pdf http://midlandmicrofin.com/mmicrofin_microfinance.htm http://microfinanceafrica.net/tag/microcredit-to-women-in-punjab/ http://www.sksindia.com/press_releases_details.php?id=184 http://indiamicrofinance.com/uidai-punjab-national-bank-sign-mou.html The Tribune, Chandigarh; November 5,

2006http://www.tribuneindia.com/2006/20061105/biz. htm#2 Newspaper article discusses Oriental Bank of Commerces strategy to enhance financial and client outreach in the rural areas through SHG lending.

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ANNEXURE ANNEXURE: QUESTIONNAIRE Name: ____________________________


1. Age Age less than 20 20-40 40 & above Frequency Percentage

2. Marital status Marital status Single Married Widow Divorcee Frequency Percentage

3. Type of family Type of family Joint Nuclear Extended Frequency Percentage

4. Education Education Illiterate Matric Higher Frequency Percentage

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Graduation Post graduation Vocational Other

5. Occupation Frequency Self Employed Labor Housewife Professional Family owned business Retired 6. Income Income (Monthly) 0-2000 2000-4000 4000-6000 6000 & above 7. Use of Financial Sources Savings Type Formal Sources Bank A/C Post Office Co-operatives Semi-formal Sources MFIs/NGOs/SHGs Formal Sources Banks Credit Frequency Percentage Type Frequency Percentage Frequency Percentage Percentage

Saving A/C Semi-formal Sources MFIs/SHGs

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savings Informal Sources Neighborhood Group savings Gold/Silver Cash at home Relative/Friends Employer Colleagues Informal Sources

PERCEIVED SATISFACTION LEVEL OF THE WOMEN MICROFINANCE BORROWERS ACTIVITIES OF HIGH SATISFACTION 8. Amount of loan Highly Satisfied Amount availed 9. Loan Duration Highly Satisfied Loan Duration Satisfied Neutral Dissatisfied Highly Dissatisfied of loan Satisfied Neutral Dissatisfied Highly Dissatisfied

ACTIVITIES OF MODERATE SATISFACTION 10.Timings to access Highly Satisfied Timings to access credit 11.Transport cost to visit a bank branch Satisfied Neutral Dissatisfied Highly Dissatisfied

88

Highly

Highly

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Transportation cost to visit a bank branch 12.Enough information is provided by the provider Highly Satisfie d Enough information is provided by the provider 13. Rate of Interest Highly Highly Satisfied Rate of interest 14.Loan sanctioned Highly Satisfie d Time taken to get the loan sanctioned 15.Suitable products are available as per needs Highly Highly Satisfie d Neutra l Dissatisfie d Highly Dissatisfie d Satisfied Neutral Dissatisfied Dissatisfied Satisfie d Neutra l Dissatisfie d Highly Dissatisfie d

Satisfied Satisfied Neutral Dissatisfied Dissatisfied Suitable products are available as per needs

89

16.Compulsory saving requirement Highly Satisfied Compulsory requirement saving Satisfied Neutral Dissatisfied Highly Dissatisfied

17.Requirement of guarantee Highly Satisfied Requirement guarantee of Satisfied Neutral Dissatisfied Highly Dissatisfied

18. Behavior of bank staff Highly Satisfied Behavior staff 19. Complaints/problems are well entertained Highly Satisfie d Complaints/problems are well entertained Satisfie d Neutra l Dissatisfie d Highly Dissatisfie d of bank Satisfied Neutral Dissatisfied Highly Dissatisfied

20. Consequences of non-repayments Highly Satisfied Satisfied Neutral Consequences repayments of nonHighly Dissatisfied Dissatisfied

90

ACTIVITIES OF SLIGHT SATISFACTION 21. Convenient procedure Highly Satisfied Convenient procedure 22. Terms and conditions Highly Satisfied Terms and conditions 23. Demand for collaterals Highly Satisfied Demand collaterals 24. Loan utilization check Highly Satisfied Loan check 25. File charges Highly Satisfied File charges 26. Repayment policy Highly Satisfied Repayment policy
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Highly Satisfied Neutral Dissatisfied Dissatisfied

Highly Satisfied Neutral Dissatisfied Dissatisfied

Highly Satisfied Neutral Dissatisfied Dissatisfied

for

Highly Satisfied Neutral Dissatisfied Dissatisfied

utilization

Highly Satisfied Neutral Dissatisfied Dissatisfied

Highly Satisfied Neutral Dissatisfied Dissatisfied

LEVEL OF IMPACT ON THE WOMEN MICROFINANCE BORROWERS ACTIVITIES OF MODERATE IMPACT 27. Improvements in Social Status Highly Satisfied Improvement in social status Satisfied Neutral Highly Dissatisfied Dissatisfied

28. Poverty reduction Highly Satisfied Poverty reduction Satisfied Neutral Dissatisfied Highly Dissatisfied

29. Improvement in consumption leave Highly Satisfied Improvement in consumption leave 30. Recognition in family Highly Satisfied Recognition family 31. Improvement in income level Highly Satisfied Improvement in income level Satisfied Neutral Dissatisfied Highly Dissatisfied in Satisfied Neutral Dissatisfied Highly Dissatisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

92

32. Increase in decision making powers Highly Satisfie d Increase in decision making powers 33. Confidence building Highly Satisfied Confidence building Satisfied Neutral Dissatisfied Highly Dissatisfied Satisfie d Dissatisfie Neutral d Highly Dissatisfie d

34. Improved communication skills Highly Satisfied Improved communication skills Satisfied Neutral Dissatisfied Highly Dissatisfied

ACTIVITIES OF SLIGHT IMPACT 35. Awareness of social issues Highly Satisfied Awareness issues of social Satisfied Neutral Dissatisfied Highly Dissatisfied

93