Impact of VAMA's Microfinance and Development Programs

VAMAMicrofinance and Programs – An Impact Assessment
SPJIMR DOCC Project Report 2013
THE EMPOWERED WOMAN
An Impact Assessment of VAMA’s Microfinance and other
Development Programs
An assessment of the long-term, sustainable impact on women, households
and communities of VAMA’s Microfinance, Financial Literacy and Aasha
programs through a survey of 100 women and in-depth interviews
SHREEJA DASH
SPJIMR DOCC Project Report
4th
March – 13th
April 2013

CONTENTS
Acknowledgement
Executive Summary
A. Background 1
B. Problem Definition and Framing 2
Context
SWOT Analysis
Problem Statement
Problem Objective
C. Methodology 4
Scope of the project
Field work executed
Primary data collection and community
interaction
D. Impact Assessment Survey 7
Survey Design and Objectives
Assumptions
Profile of groups
Survey Results and Analysis
E. Programmes and Concluding Remarks 9
Financial Literacy Programs
Aasha Training Programs
Conclusion
Recommendations
F. Individual Contribution 15
Appendix

The report is based on research conducted between March and April 2013 as a part of the
DOCC Project with Bal-Mahila Vikas Samiti.
ACKNOWLEDGEMENTS
We thank Mr. Indra Bhushan Verma and all the staff of VAMA who gave us support and
guidance without which this report could not have been completed. We are also grateful for
the patience of and time taken out by over 100 VAMA members – both old and new, for
participating in the survey, and for the insights given by officials of banks and other
organizations. Special thanks to Mr. Bharat Parekh, INBAR for his valuable comments on
our findings. Lastly, we are grateful to DOCC Committee and SPJIMR for organizing this
memorable

EXECUTIVE SUMMARY
The report assesses the long-term, sustainable impact on women, households and
communities of the microfinance program of Bal Mahila Vikas Samiti (BMVS or VAMA)
operating in Gwalior district, Madhya Pradesh. Impact of some of the other development
programs under VAMA such as financial literacy and Aasha training programs have also
been discussed. Other recommendations for the organization regarding its operations and
product portfolio have also been suggested. Regular collection and communication of
comprehensive impact assessment data to funding agencies would help secure steady flow
of funds.
Both quantitative techniques – a survey of 100 women from a representative set of from
villages and urban slums, and qualitative techniques - in-depth interviews and client
satisfaction survey, were used to assess the impact of the microfinance program. The
variables examined for assessing impact were economic factors – income changes,
vulnerability reduction, asset growth and accumulation, outcome level of enterprises; socio-
political factors – change in power relationships and shift in economic decision making and
personal factors such as women empowerment.
As compared to the control group the target group (members of VAMA microfinance for one
loan cycle or more, with similar demographic background) reported:
· On a household level: annual household incomes were higher by 39322; ownership levels
for assets of moderate value was higher (not significant for assets of modest or high value);
there were more sources of income per household (reducing vulnerability)
· On an individual level, women reported higher levels of involvement in decision making in
households and higher levels of confidence in dealing with figures of authority
· On an enterprise level, loans were used to start new micro-enterprises and expand on or
invest in existing ones. Product cycles shortened and vulnerability of businesses decreased.
Recommendations:
· Regularly measure impact of programs and communicate results to key stakeholders, donors
and funding agencies and appoint dedicated fundraiser to stem shortage of funds
· Introduce a performance measuring system and enhance operational capabilities through
training and incentives
· Increase initial and subsequent loans amount to arrest customer dissatisfaction (promises
made during initial meeting are not being met) and also to enable clients to start new small
businesses
· Implement a document management system to ensure clarity of goals and processes.
· Periodically measure effectiveness of development programs through both quantitative and
qualitative techniques.
· Adopting fair HR practices and independent auditing

A. BACKGROUND
Bal-Mahila Vikas Samiti (VAMA)
Bal-Mahila Vikas Samiti (VAMA) is a non-
profit organization established in 1988 and
registered under Madhya Pradesh Societies
Registration Act 1973. With a staff strength
of 40 (Appendix 1: Breakup of staff by job positions), VAMA works for disadvantaged social
groups such as Dalits, tribals, women, working children and other deprived classes on areas
as diverse as capacity building, livelihood generation, awareness about land rights and
women’s rights, health and sanitation, gender equality, financial literacy and microfinance
(Appendix 2: List of Programs and Activities in 2012). After two decades of social
development work in the economically backward and drought-prone Chambal-Bundelkhand
region of Madhya Pradesh, VAMA started its microfinance program in 2006.
Profits from the VAMA group of colleges and the Microfinance Unit, leave a comfortable
surplus that can be reinvested in these units or directed to the non-income generating
Programmes Unit (Appendix 3: Balance Sheet). However, the microfinance and the
Programmes units are still largely dependent on donors and other funding agencies
(Appendix 4: List of Donor Agencies). A five year Strategic Business Plan outlines the
mission, vision and strategy to achieve 50,000 active clients by 2018.
“To establish an egalitarian society based
on rights so that the poor, marginalized and
dalits - especially women, have equal
participation in all spheres.”
– VAMA Mission Statement
MICROFINANCE
PROGRAM
SOCIAL DEVELOPMENT
PROGRAMS
VAMA GROUP OF
COLLEGES
§ Operational in 189 villages
and 47 urban slums of
Gwalior district since 2006
§ Loan portfolio: Rs.
3,11,58,000; average loan
size of Rs. 7514
§ No of groups: 1316; Active
clients: 2276, members:
6881
§ Women Empowerment
§ Financial Literacy Health &
Nutrition
§ Natural Resource
Management
§ Livelihood Promotion
§ Rural Education
§ Female Feticide
§ Domestic Violence
§ Colleges offering BBA, BCA,
B.Com, B.Sc (Bio)
§ ANMnursing school in Datia
district for training women
to be nurses
§ Approved by IndianNursing
Council,New Delhi and
recognized by Mahakaushal
Nursing Council, M.P
Programs under Bal MahilaVikas Samiti / VAMA

APPROACH/STRATEGY USED, PROGRAM, LOCATION & BENEFICIARIES, AND OTHER STAKEHOLDERS, STAFF
COMPETENCY, FINANCIAL HEALTH, EFFECTIVENESS
B. PROBLEM DEFINITION AND FRAMING
CONTEXT OF THE PROJECT
As previously mentioned, VAMA operates in the backward and geographically remote
Gwalior – Chambal region of MP. According to the 2011 census, the sex ratio in these areas
is quite low (Bhind and Morena: 822/1000, Gwalior: 862/1000; Datia: 875/1000).
SWOT ANALYSIS
PROBLEM STATEMENT
been discussed. Other recommendations for the organization regarding its operations and
product portfolio have also been suggested.
PROBLEM OBJECTIVES
Though VAMA’s programs – both microfinance and development, have been running for
several years, the reports and the data collection (often done by field executives) was

insufficient to get a true picture of the impact of their programs on the lives of these
beneficiaries. As competition over funds from donors and funding agencies intensifies,
communicating the full impact of VAMA’s interventions in terms of social goals achieved
(beyond just loan portfolio size and number of active clients) would help secure a larger,
steadier flow of funds. Regular communication of such achievements and milestones can not
only help them attract new clients, but may also help check the high rate of attrition by
motivating staff.
C. METHODOLOGY
SCOPE OF THE PROJECT
been discussed. Due to scheduling conflicts and other constraints (as March was the closing
month for this year, many development programs had already been completed for the year.
As such we could observe only certain programs). Also, due to the limited number of women
we interacted with for Programmes Unit, only qualitative techniques such as interviews have
been used. Other recommendations for the organization regarding its operations and
product portfolio have also been suggested based on field observations, conversations with
staff and officials. Regular collection and communication of comprehensive impact
assessment data to funding agencies would help secure steady flow of funds.
FIELD WORK EXECUTED
A total of 19 days were spent on the field observing the various processes and activities of
VAMA and interacting with beneficiaries. (Appendix 4: Details of Field work executed)
PRIMARY DATA COLLECTION AND COMMUNITY INTERACTION
Over the course of 6 weeks, we spent 19 days in the field and collected data from over 100
women for the MF unit; interviewed a group of 20 women for the financial literacy program;
interviewed a mix of Aasha trainees and trainers and other field staff and organizations
officials. Details of the primary data collection for Microfinance Program are included in
Section D of the report. Also, the details of the tools used for assessment have been
included in appendix 3.

C. IMPACT ASSESSMENT SURVEY
VAMA’s Microfinance (MF) program gives loans to women for the following purposes: dairy,
agriculture, microenterprises, services and house repair & maintenance. As of 2012, VAMA
has provided access to capital to 18,128 low-income households in 189 villages and 47
urban slums in Chambal region of Gwalior district, MP. Currently the marketing for the
microfinance program is through grass root marketing, word-of-mouth and client
recommendations.
SURVEY DESIGN AND OBJECTIVES
By combining both qualitative and quantitative techniques, the report assesses long term,
sustainable changes in the lives of women, and on other identifiable units of analysis such
as households, organizations, communities. Impact can be either positive or negative but
equally important (Blankenberg, 1995). Standardized data was collected as part of the
Impact Survey while in-depth dialogue with clients and case studies were used as qualitative
tools of assessment.
ASSUMPTIONS
· Those choosing to join the program are similar to existing clients in terms of
demographic background, motivation, and business experience and thus offer an
appropriate and easily identified comparison group.
· All the data recorded from the survey was recorded as it is without any efforts to
verify the statements of the women. Hence, we are assuming that the data provided
by the participants is generally accurate and reliable.
A total of 107 (Target group: 57; Control group: 42, 8 profiles rejected for
incomplete/inaccurate data) from a representative set of villages and urban slums of
Gwalior district participated in the survey. The participants were informed of the purpose
and the voluntary nature of our survey which was conducted in Hindi. As mentioned in the
assumptions, the data has not been verified. Thus, there is a risk of inaccuracies due to
problem of recall, insufficient knowledge of the respondent etc.
PROFILE OF SAMPLE POPULATION
In a comparative study, ensuring that the target group and the control group have similar
demographic backgrounds (external factors such as age, literacy), business experience and
motivations (both joined VAMA, only the number of months they’ve been a member of
VAMA is different) is important to ensure that these external factors are not biasing the
results.

Fig 02: Slightly older participants of target group
Source: Impact Assessment Survey, 2013
§ Difference in “>40” category could be because
clients over 50 are not allowed toform new groups
but can continue if already in an existing group
§ Could bias results in favor of TG as olderwomen
have more experience, more time to develop skills
and accumulate assets
Fig 01: Similar levels of literacy for both target and control groups
Target Group Control Group
Source: Impact Assessment Survey
§ Illiterate or primary
schooledwomen: 73%
for TG vs. 74% for CG.
§ No significant bias
expected due to
literacy levels
Fig 03: Borrowing from sources other than VAMA
§ Low levels of borrowing from
other sources. Respondents
depend on friends (part of
“Others”) and family
membersfor loans.
§ Informal moneylenders have
not been replaced by VAMA
MF evenin TG. The TG is
reaching out to more diverse
sources of finance – banks
and other MFIs (Samhita MF)
§ High and unsustainable
(loan amount > annual
income) levels of
indebtedness observed in 2
TG households
§ Average loan size for TG: Rs
7906 (not including two
outliers); CG: Rs. 2967Source: Impact Assessment Survey, 2013
Target Group
Control Group

Fig 04: Change in income as compared to previous years
§ More TG respondents (22
percentage points)
reported increase in
income over lastyear
§ Indicates economic
success of VAMA’s
intervention, or at the very
least increased optimism
and confidence about
income
Table 01: Higher average household and household income/ person for TG
SURVEY RESULTS AND ANALYSIS
ECONOMIC FACTORS: INCOME CHANGES
VULNERABILITY REDUCTION
Diversifying income and vulnerability reduction
In the Bundelkhand region, where there is a period of drought every two to three years,
income from farming and allied activities is especially vulnerable. As such, income from
Average annual
household Income ( )
Average annual household
income per person ( )
Target Group 183441.38 38668.95
Control Group 144119.05 36490.79
Difference 39322.33 2178.16
ECONOMIC FACTORS SOCIO-POLITICAL /
CULTURAL
PERSONAL /
PSYCHOLOGICAL
§ Income changes
§ Vulnerability reduction
§ Asset growth
§ Outcome of level of
enterprises
§ Change in power
relationships (status
positions)
§ Shift of economic decision
making from men to women
§ Political empowerment
§ Womenempowerment
§ Psychological strength due
to financial health and
strength
Factors and variables for measuring impact of microfinance programs

Fig 05: Multiple sources of income reduces vulnerability of TG
§ Both TG and CG have
an average of two
working members per
family, but TG has
higher number of
sources of income
leaving it less
vulnerable to shocks
other sources, and more importantly income from multiple sources, becomes especially
important. Even in urban households, an extra source of income reduces vulnerability to
shocks such as the bread-earner falling ill.
Sector of activity
Most of workers from both groups are either wage earners or work in the construction
industry. Some of the most popular occupations are constructing roofs, sewing and trading
(small kirana stores). (Appendix 5: Survey Results - Sector of Activity Details)
ASSET ACCUMULATION AND GROWTH
For the target group, 41% of the assets of modest value, 50% of assets of moderate value
and 33% of assets of high value were acquired when they were a member of VAMA
Microfinance. One of the limitations of the survey was not recording other assets such as
cell phones, coolers etc, which were more common to these households than bed with
frame and radios. A more comprehensive survey could also track house and land
ownership.
Household
assets ->
Modest Value Moderate Value High Value
Radio, cycle, chair/table,
gas/stove, bed with
frame.
Fridge, TV,
Motorcycle
Car / pickup
truck, tractor
Target Group 2.45 / 5.00 1.95 / 3.00 0.03 / 3.00
Control Group 1.75 / 5.00 1.46 / 3.00 0.05 / 3.00
Difference SIGNIFICANT SLIGHT NEGLIGIBLE

Fig 06: Use of Loan from VAMA by TG
§ Loans large enough for working capital to start
microenterprises but not for small businesses.
Some investment has to come from the client
(distributes risk between lender and borrower).
§ The above chart shows the sector wise
use of loan while the adjacent chart
shows the purpose of loan.
§ Several clients have used loans to start,
reinvest in businesses showing the
effect of the loan on communities and
the local economy
Household Expenses
Food was the most important
component of the household
expenditure for both the target group
(TG) and control group (CG). For the TG,
the second main priority was school
expense followed by clothes. For the CG,
the second highest expense was clothes
followed by school expenses.
Most respondents send their children to
private schools to ensure a better
education.
Impact of Investment
The analysis of investment
impact shows that majority of
VAMA borrowers perceived a
positive impact on their
investment. The impact mainly
shows in terms of increase in
income and savings. 65.5% of
22%
14%
20%
2%
13%
9%
7%
12%
0%
26%
19%
17%
4%
13%
6%
4%
11%
1%
Food
Clothes
School Expenses
Health-Related Cost
Household Items
Reinvest in enterprise
Savings
Others
Don't Know
0% 5% 10% 15% 20% 25% 30%
ControlGroup
TargetGroup
65.5%
70.7%
25%
14.1%
28.1%
6.3%
25.0%
Increase
in Income
Increase
in Savings
Expanded
size of
business
Added
new
products
Improved
quality of
products
Reduced
costs by
buying in
greater
volume
Developed
a new
enterprise

Fig 08: What clients liked about VAMA’s MF Program
§ Interest rates are
perceived to be lower
than that of other
sources. Clients also like
that the loans provide
themwith a steady
source of capital.
§ “Others” include
disbursement of loan on
time, customer services
and collection at home.
Fig 07: Significantly higher participation in decision making for TG
§ Women in the TG
households have shifted
to self or joint decision
making.
§ Small % of this could be
attributed to difference in
average age of TG and CG
as elders have higher
participation in rural
households
Target Group Control Group
the respondents have noticed an increase in their income and 70.7% noticed an increase in
their savings.
SOCIO-POLITICAL/CULTURAL FACTORS
Change in Power Relationships (Status Position)
Apart from the quantitative data recorded in the survey, it was also observed that women in
the target group were more forthcoming and confident in their conversations with the
interviewer and other figures of authority – an observation that was confirmed with Field
Executives (FEs) and Branch Managers (BMs) alike.
Client Satisfaction Survey
Knowing what features current clients value and what they would like to change would help
VAMA design better products and services in the future.
46.6%
39.7%
3%
10.3%
34.5%
12.1%
22.4%
14%
Lower
Interest
Rates
Steady
source of
working
capital
Group
dynamics
Training or
assistance
Other
financial
services
Easier
guarantees
than loan
alternatives
Others Don't Know

Fig 09: What clients dislike / would like to be changed about VAMA’s MF Program
§ High rates of overall
satisfaction with VAMA MF
(54% respondents
completely satisfied with
the program).
§ Small size of initial and
subsequentloans, different
from whatwas earlier
promised is biggest irritant
§ Some clients feel that
compulsory savings and
insurance are forced.
This is a story of howan illiterate, single mother struggled against all odds to work towards
her passion. The colorful bangles that now lie before her are testament to her hard work and
the life changing impact that a little help can have on the lives of women like her. She is a
source of inspiration for women in her community and has successfully advised other
women on their finances and for starting new businesses
(Appendix 7: Detailed description of in-depth interview with Badami)
Badami (55 years),
Madhav Nagar, Gwalior.
§ One of the oldest clients
of VAMA’s MF Program
§ Head of her nine
member household
§ VAMA’s loans have
helped her successfully
start her own bangles
selling business and
save more than Rs.
10,000.
§ She now dreams of
owning a fridge and
building two additional
rooms in her house.
Microfinance Case Study: Badami, Anmol Joint Liability Group
3.4%
17.2%
3.4% 3.4% 1.7%
12.1%
53.4%
13.8%
High
interest
Size of
loanstoo
small
Loan
cycle too
short or
long
Meeting
frequency
too often
or
meetings
too long
Forced
savingsor
insurance
Others Nothing Don't
know

E. DEVELOPMENT PROGRAMS AND CONCLUDING REMARKS
DEVELOPMENT PROGRAMS: FINANCIAL LITERACY
A group of 20 women were interviewed about their experience with the financial literacy
program. Most women said that they were not able to save and that the program had no
impact on their financial habits. Some were too shy to answer our questions.
DEVELOPMENT PROGRAMS: AASHA TRAINING
Aashas were satisfied with the training program and did not have any complaints and nor
could they suggest any changes for the better. They pointed out that the extra income and
more importantly, the respect that they get from their communities is the main reason why
they continue to work as Aashas. Trainers reported that even illiterate women (generally
about 8% of the trainees were able to become Aashas through support network of their
families and neighbors (asking others to record, especial attention given to these women
during training). The trainers felt the need for more regular training to reinforce concepts.
The Women’s Day Celebration, though a step in the right direction was also plagued with
several problems such as poor organization (guest speakers cancelled at the last minute,
women had to wait for hours in the sun for the program to start; a significant proportion of the
event was taken up by a single woman promoting a certain religion which had no bearing on
women’s issues).
CONCLUDING REMARKS
POSITIVE IMPACT
As gleaned from our in-depth interview with Badami, successful women play a key role in
their communities – they encourage other women to start new businesses, to cut down on

unnecessary expenditures etc. Also, as the primary decision makers in their households,
they act as role models in their respective communities.
NEGLIGIBLE / POSITIVE IMPACTS
Turning to moneylenders or friends and family would not end because of the microfinance
program (since the money lenders offer convenience and often larger size of loans). The
unsustainably higher levels of indebtedness as reported by two of the TG respondents can
push these clients into a cycle of debt. VAMA’s microfinance program generally caters to the
low-income households, and not poor households (as observed from reported household
level incomes).
The beneficial impact of VAMA’s work in the social development field is not as visible due to
the problems mentioned before.
RECOMMENDATIONS
Based on our findings from this report and our observations from field visits, the following
actions can be considered to improve VAMA’s Microfinance Program.
1. FINANCE AND FUNDRAISING
Rationale: At the core of the problem of the microfinance programs, is lack of access to a
steady flow of funds. The microfinance program is not self-sustaining, as in new loans
cannot be generated based on just the repayments and the current savings accounts of the
members. The Andhra crisis has resulted in a shortage of funds flowing to microfinance
programs pressurizing growth of VAMA’s MF portfolio, especially since 2009. As can be
observed from the Client Satisfaction Survey, most of the dissatisfaction stems from the loan
size. VAMA has taken a conscious decision to use their limited funds to increase outreach
rather than increase loan amount (in group meetings, a gradual increase is promised to the
client per cycle depending on good group behavior and timely repayment).
For securing additional funds, most of the work is done by the Executive Secretary, Mr Indra
Bhushan Verma who also handles VAMA Group of colleges, the Programmes Unit and
oversees operations and other functions of the organization.
Solution: Since fundraising is an important and time-consuming activity, one that is currently
constraining the growth of VAMA and contributing to higher levels of dissatisfaction (both MF
and Programmes), appointing a dedicated fundraiser for the organization would add more
value as compared to the cost.
2. Performance Management System
Rationale: From discussions with branch managers (BM) and field executives (FE), we
discovered that FEs can without much effort achieve the current targets of securing five new

client groups per month. The high demand and the strong brand image and word to mouth
marketing results in groups approaching the office themselves. Several women from the
newly formed groups complained about the delay in starting the group. FEs are often unable
to handle the number of requests for group formation.
Solution: For these reasons, we recommend establishing Key Performance Indicators (such
as number of new groups formed; collection time rather than just the portfolio size and
number of groups serviced) for Field Executives and providing additional incentives such as
increments in salary etc based on these indicators. This would arrest the high rate of attrition
in the organization, especially at the lower levels. Also, it would motivate the field executives
to reach out to more clients, and improve the overall client experience and lifetime value.
3. Adopting good business practices
Rationale: Two children under 14 years of age were being employed as office attendants.
For an organization that claims to work towards the elimination of exploitation of vulnerable
sections, it is absolutely unacceptable that child labor is employed. Moreover, one of these
employees was not being paid on time (salary outstanding for three months). Also, the
internal auditing is done by a relative of a member of the board.
Solution: Though cost cutting is an important priority for a perennially cash strapped
organization, fair employment conditions are a must. Independent audits reduce the chances
of an unbiased picture of the health of an organization
4. Business Development Services
Rationale and Solution: Currently, VAMA leverages on its brand (developed through the
ongoing social development programs in the area). Some existing programs such as
Financial Literacy modules can also be offered to existing clients to strengthen the overall
microfinance program. This would also help address early on the problems with clients with
high and unsustainable levels of indebtedness. VAMA is also considering partnering with
INBAR and other NGOs in the area to promote alternative income-generating activities such
as bricket making (from residual ash of chulhas). As observed from the survey data (sector
of activity, use of loans), several women in an area are pursuing similar income-generating
activities. As such, providing them with technical training etc can benefit these clients
enormously.

Retail Financial Services
· Consumer Loans
· Savings Product
· Insurance Products
Greater coordination (staff hours, funds) would be required between the Programmes and
the MF Unit.
5. Document Management System
Rationale: Some of the key documents of the organization such as the business
development plan and the operations manuals have several contradictions and
discrepancies in the data. Information such as target number of clients and new processes
need to be communicated in a consistent and clear manner.
Solution: As such, all documents need to be regularly updated with key information and
other data points such as “Last updated”, “Prepared by” and “Reviewed by”.
6. Outreach and increase of loan amount
Rationale: As mentioned previously, the outreach targets per FE are not ambitious enough
to be able to reach the goal of 50,000 active clients
The results of this survey showed that 32% and 21% of the target group and control group
respectively received credit from sources other than VAMA MFI. VAMA should increase its
efforts to reach out to clients and to increase the loan amount given to individual clients.
7. Development of new products
A wider product portfolio such as insurance and emergency loans (would further reduce
vulnerability of clients to shockc) addressing the needs of the clients – both existing and
future, can help both VAMA and the clients. VAMA should consider conducting feasibility
studies on the development of insurance and leasing products.
8. Enhancing of operational capabilities
In order to increase client volumes, managing larger loan portfolios and to introduce new
products, VAMA’s operational capabilities have to be enhanced. The productivity of loan
Business Development
Services
· Financial Literacy
· Business Training
/Technical
Assistance
· Access to markets
· Bank Linkages
Microfinance Microenterprise
Development

officers need to be enhanced through training and incentive programs. The current cost
structures need to be reassessed to allow for competitive pricing. Staff training on MIS
system is also needed to ensure higher productivity and internal control.
9. Measurement of Effectiveness
As observed in some programs, the beneficiaries are not getting the desired benefit from the
intervention. A periodic review and measurement of effectiveness of development programs
through both quantitative and qualitative techniques, would help track the impact of the program.
F. INDIVIDUAL CONTRIBUTION
Though all the work – including field visits, meetings, report writing – was done as a team, I
would like to highlight the following areas of my contribution to this project:
§ Interviewed VAMA’s field executives and Bank of India’s Branch correspondent –
Narayana Singh Rana about financial literacy modules and bank linkages program
§ Prepared rough structure of questions for the in-depth interview with Badami Bai,
whose success story is highlighted in the report.
§ Helped design impact survey questionnaire based on AIMS (Assessing the Impact of
Microenterprise Services) – SEEP (Small Enterprise Education and Promotion)
Network Manual. Revised questionnaire as per suggestions of the NGO.Surveyed 40
women participants (20 TG, 20 CG) from urban slums and villages on the outskirts of
Gwalior district.
§ Attended all field visits and took notes and transcripts for interviews and on the field
observations.
§ Addressed a gathering of around 50 women on issues regarding education and
women empowerment at the International Women’s Day program in Raura village.
§ Designed questionnaire for and interviewed Aasha trainees and trainers at Datia
district
§ Along with my fellow team mate, I presented our preliminary findings from the impact
survey results to Mr.Dr. I. V. Ramanuja Rao, Programme Director, INBAR, Mr. Bharat
Parekh, Programme Officer, INBAR, officials from NABARD and several other NGOs
from the state.
§ Training Needs Assessment Form

REFERENCES
§ Internal Documents from VAMA:
o VAMA Annual Report 2011-2012
o VAMA Operations Manual
o VAMA HR Manual
o VAMA Accounts Manual
o VAMA Strategic Business Plan 2012-2017
o Financial Progress Monthly Report
o Operational Progress Monthly Report
o SMERA MFI Rating report September 2010
o CRISIL Microfinance Grading Report August 2009
Publicly available data can be accessed at <http://vamaindia.org/>
§ “State of the sector report 2011”; Microfinance India; Accessed on March 2013;
<http://www.microfinanceindia.org/download_reports/sos_2011.pdf>
§ Microfinance Impact Assessment and Market Research Survey-UNRWA –
Microfinance Department – Syria
§ M-CRIL Microfinance Review 2012: MFIs in a Regulated Environment
§ Microfinance Market Survey in the West Bank and the Gaza Strip conducted by
Planet Finance
§ Microfinance and Poverty Alleviation: An Impact Assessment Survey By RBS
Foundation
§ “Learning from Clients: Assessment Tools for Microfinance Practitioners, The SEEP
Network”; Accessed on March 2013; < http://pdf.usaid.gov/pdf_docs/PNACJ138.pdf>
Appendix 1. Breakup of staff by job positions
Staff Strength: 40 (as of 31 March 2012)
§ CORE TEAM (2nd
line management) - 06
§ MIS and ACCOUNTS (Office level management) - 06
§ Program support staff and Project staff - 10
§ Field Executives - 12
§ VAMA Group of College Faculty - 06

List of Programs and activities for 2012

Appendix 4: Details of Field Work Executed
No. Days Area Details
1 3 Kale Kar Bai Ki Goth
Tehsil, Gwalior District.
Observed group formation process for 3-4 groups in urban
slums
2 2 Morar District Observed collection process for 10-15 groups
3 1 Kale Kar Bai Ki Goth
Tehsil, Gwalior District.
Followed the same group for group recognition test with
Branch Manager, Deepal Malhotra and Field Executive,
Punita.
4 1 Morar Field investigation process with Branch Manager, Deepal
Malhotra and Field Executive, Madan
5 1 Raura village, Gwalior Women’s Day Event – Were guest of honor and main
speakers. Creating awareness on female feoticide.
6 1 Datiya Aasha training. Observed training process. Talked to five
trainees, three trainers and VAMA officials in charge of the
five-day residential training program.
7 1 Dabra Financial Literacy program. In-depth interviews with a group
of 20 women and VAMA field executives in charge of the
program
8 1 Berja Interview with Branch correspondent of Bank of India, Berja
branch
9 1 Veerpur Girwai In-depth interview with Badami Bai
10 4 Shreeja: Around 20
urban slums in and
around Gwalior and
Morar district
Impact Assessment Survey – 40 respondents.(20 target
group, 20 control group)
11 4 Noorain: Around 20
urban slums in and
around Gwalior and
Morar district
Impact Assessment Survey – 40 respondents.(20 target
group, 20 control group)
12 1 VAMA, Gwalior Office Disbursement process
13 2 VAMA, Gwalior Office Attended two day seminar by INBAR on financial security of
NGOs and rural livelihood generation and presented
findings of our impact survey.
Bharat Parekh – Country Head INBAR
Appendix04: Tools for data collection
Tool
§ Microfinance Impact Assessment Survey
§ Social Security Survey
§ Asha Questionnaire
§ Financial Literacy Questionnaire
§ MFI Questionnaire
§ Audio of the interview with Ms.Badami

Appendix 6: Survey Results – Sector of Activity Details
Appendix 7: Detailed description (edited transcript) of in-depth interview with Badami
Badami’s husband left her and her two sons very
early on, leaving her to fend for herself and her family.
She worked in an industry as a labour, earning 50
per day for working more than 12 hours. It was hard
work and the long commute and work hours left her
with very little time with her family. In this time of need,
her father built a house for her and her family – the
one in which she still lives. Though she was very
grateful for the help that she received from her family,
she did not feel comfortable in continuing to depend
on them.
With the meager earnings her family struggled to meet ends and soon her two sons had to
drop out from school – having studied only till classes 5th and 7th. They started working as

daily wage earners for constructing roofs. She regrets that she was not able to afford a
better education for her sons but says that it was a necessary step to ensure the welfare and
survival of her family.
It was in 2006 – when VAMA’s Microfinance program was just being launched - that Badami
heard about the organization and its work from Bharti, an Aanganwadi worker from her area.
Soon she joined several other women in her community to form a self help group – Anmol.
She had never taken a loan from any other source before, so this was a novel experience for
her.
She received her first loan of 5000. Badami had always wanted to open a bangles’ shop
but realized that the current loan amount was too little for starting this business. So she used
her first loan to do sewing work, working diligently to pay back the installments and
accumulate some savings. With her savings and a second loan of 10,000, she was able to
open a bangles’ shop. Her business grew steadily and she her business generates a profit of
2500 per month. With the third loan of 15000, she bought more materials for her shop.
She sets up shop (on a thela rented for 20 per day) only three or four times a year – on
days of major festivals such as Diwali and KarvaChauth and as and when local melas are
organized. She is able to sell the other bangles from her home itself as many women come
to her to buy bangles. She is thus able to spend the entire day with her family and especially
cherishes the time spent with her grandchildren. Her daughter-in-laws help around with
household chores and do sewing work while her sons now have their own business for
constructing roofs.
She remembers a time when she did not have any assets besides her house. With her
increased income, she was able to buy a television, a cooler and a fan. Though her own
sons, as victims of circumstance, could not finish school she has ensured that her grandsons
get the very best of education. They now study in a private school. She has more than
10000 of savings in a Post Office account.
She has talked to many women in her community about the benefits of taking such a loan
and of savings. Women look up to her and have often come to her for advice and for help.
She encouraged and advised another woman in her neighborhood, who has now started a
successful vegetable store.

She now dreams of owning a fridge and building two additional rooms on the roof of her
house.
Appendix 5: Contact details of people and organizations interacted with during DOCC
project work
Sr. No. Name Designation & Organization
1 IndraBhushanVerma CEO, VAMA
2 Nilofer Khan COO, VAMA
3 SarveshDhingra Finance Manager, VAMA
4 Deepak Malhotra Branch Manager, VAMA
5 Shanno Khan ABM, VAMA
6 MadanKushwaha ABM, VAMA
7 Dr. I. V. RamanujaRao Programme Director, INBAR
8 Bharat Parekh Senior Programme Officer, INBAR
9 Narayan Singh Rana Branch Coordinator, Bank of India

LIABILITIES
2011/12 2012/13
1 Share Capital (Schedule 1)
Upto Last Year 7225067.98 9307325.13
During Current Year 0.00 2243.00
LESS Share withdrawn 0.00 25195.00 9284373.13
2 Security Deposits (Schedule 2)
Upto Last Year 0.00 0.00
LESS Withdrawals 0.00 0.00 0.00
3 Savings with MAC (Schedule 3) 0.00 0.00
LESS Savings Withdrawn 0.00 0.00 0.00
4 Outstanding Borrowings (Sch 4)
Upto Last Year 34096044.69 24526399.46
Borrowings Current Year 11959108.73 4918875.00
LESS Amount Repaid 21528753.96 13264741.73 16180532.73
5 Short Term Borrowings
Upto Last Year 1069108.00 1505181.00
Borrowings Current Year 4477997.00 1930633.00
LESS Borrowings Returned 4041924.00 4183293.00 -747479.00
NET SURPLUSES 2082257.15 380433.00
35338905.59 25097859.86
ASSETS
2011/12 2012/13
1 Share Capital
Share Paid up Current Year 0.00 0.00 0.00
2 Deposits
Upto Last Year 1770118.00 1860665.69
LESS Saving Deposit Refund from ASP 100000.00 547134.00 1384077.69
3 OS Loans with Members (Sch 5)
Upto Last Year 26916616.00 17103696.00
Current Year Loans 32897897.00 13392662.00
LESS Repayments 42710817.00 21032776.00 9463582.00
4 Advances Outstanding
Upto Last Year 5142379.00 4094884.00
Advances Current Year 6060568.00 9061029.87
LESS Advances Recovered 7108063.00 5539650.74 7616263.13
5 Fixed Assets (Schedule 6)
Upto Last Year 6363634.25 6100566.20
This Year 51745.00 85036.74
LESS Depreciation 314813.05 114327.00 6071275.94
6 Closing Balance
Cash on Hand 2395847.00 4159.00
Bank Balance 3783246.70 392668.10 396827.10
35338905.59 24932025.86

LIST OF PROJECT FUNDING BY THE DIFFERENT AGENCY
S.
No
Name of Funding
Agency
Ref. on Sanction letter date Amount
Sanction
Amount
Released
Status of the project
1
CIDA (ICCCO) 38-17-1-39 (GEF) Dated
April 30.2001 10,99,628.00 10,89,664.00
SAMARTH “Women’s Empow erment prog.”2 year
Program started in April 2001 and completed in
march 2003
2 NABARD
ND.BPL/MCIC/11925/SHS
Gs. 21/2000-01.Dated
14 March 2001
2,25000.00 2.22500.00
SHG “Bank Linkage Program “2 year Program
started in April 2001 completed in march 2003
3 IGSSS
SP/142 (MP-11) 02.W-
17/48 Dated 09.08.2002 5,87,100.00 5,87,100.00
Community Development Program. 6month
started in October 2002 and completed in
march2003.
4 WATER-AID
#3090 and WAI No. 335
Date20 January 2003 7,69,437.00 7,69,437.00
AABHAS “Water & Sanitation Program” one year
Program started in April 2003 and completed in
March 2004.
5 NEG
NEG/MP/(186)/1246 March
22,2002 3,52,650.00 3,52,650.00
DASTAK Innovative pilot project on primary
education started in April 2002 completed in
March 2003.
6
SPK&SS, New Delhi
RCH Project
Ref No./786/SPK&
SS/RCH/SCOVA-111/GWI.
Dated 20.04.2002
3,19,423.00 3,19,423.00
Reproductive & Child health programme.”3 year
Program started in April 2002.
7 FORRAD
F-137/2000- Projects (30)
dated 02 November 2000 2,40,000.00 2,40,000.00
Community Land Development Program started
in November 2000 and completed in April 2001
8 BUTTERFLY
BF/NRWWS/190/01
DATED 07/08/2001 45,000.00 45,000.00
Published Bal News Paper 3 volumes published
completed in March 2002
9 NCSTC (DST)
CO/TR/528/98
Dated 11/01/99 59,100.00 59,100.00
Workshop on explaining Miracle for ruralyouth
started on 25/07/99 and completed on 14/08/99
10 CAPART WSD/MPR/
17/10/1998 Dated 4 March
2004
56,28,817.00 22,74,158.00
Community Watershed Management On-Going
11 WATER-AID #3090 and WAI No.335
Date 20 January 2004 10,24,317.00 10,24,317.00
AABHAS “Water & sanitation Program” ONE-
YEAR extension, completed in June 2005.
12 SIDBI BHBO/126-27 /SFMC/
VAMA/LOAN 24.12.2008
50,00.000 TL
5.90,000 Grant
50,00,000 Tl
50,00,000
5.90,000.00
50,00,000
Fund for empowerment of SHGs
13 CARITAS,INDIA Women empow erment
through Skill development
46,500.00 46,500.00 Ghatigaon block of Gwalior dist.
14 CARE -CASHE Micro-finance Institute 5,44,328.00 5,44,328.00 Working in Gw alior dist. As a Micro finance
Institutions w ith local banker and SHGs groups.
15 DFID (PACS) Violence against women 42,00,000.00 42,00,000.00 As a Lead NGOw orking in Vidisha and Sagar
Dist. With the support of 4 nos. FNGOs
16 MNGO
Reproductive & Child
Health
Govt. of India, Ministry of
Health and Family Welfare
15,00,000.00
approx.
2,00,000.00 As a mother NGOw rking in Datia district.
17- CARE -CASHE Micro-finance Institute 3,62,000.00 3,62,000.00 Working in Sagar & Vidisha dist. As a Micro
finance Institutions with local banker and SHGs
groups.
18 FWWB,
AHMEDABAD
Micro-finance Institute 2,30,00,000 2,30,00,000 Fund for empowerment of SHGs/JLGs
19. ICICI BANK LTD Micro-finance Institute 30,00,000.00 30,00,000.00 Revolving fund for empowerment of SHGs
20. State Bank of INDIA Micro-finance Institute 100,00,000.00 100,00,000.00 Revolving fund for empowerment of SHGs/JLGs
21. CARE-RLF Micro-finance Institute 50,00,000.00 30,00,000.00 Revolving fund for empowerment of SHGs/JLGs
22. MPSACS F/AIDS/TI/NGO/09/01-07
dated 02-01-2009
12,27,800.00 12,27,800.00 Targeted Intervention Project among
Female Sex Workers
23 Manaveeya Holding Sanction Dt. 10-09-2009 1,00,00,000 1,00,00,000 Fund for empowerment of SHGs/JLGs
24 IDBI Bank Sanction Dt. 23-06-2010 50,00,000 50,00,0000 Fund for empowerment of SHGs/JLGs
25 Indian Bank Sanction Dt. 23-06-2010 25,00,000 25,00,000 Fund for empowerment of SHGs/JLGs
26 CASA April 2010 18,00,000 18,00,000 Reinforcing women for sustainable livelihood in
morar block of Gwalior district
27 MPSACS BHOPAL April 2010 to Jan 2011 185,354 185,354 Targeted Intervention Project at Mandsour
28 MPVHA (Save the
Girl Child)
April 2010 to Jan 2011 25,000 25,000 Movement against declining female sex ratio in
district Gwalior
29 RMK Feb 2011 75,00,000 75,00,000 Fund for empowerment of SHGs/JLGs

Performance Indicators Up to Dec -12 13-Jan Cumulative
Outreach
No of State 1 1 2
No of District 1 1 2
No of Block 2 2 4
No of Branches 1 1 2
No of Villages 189 189 378
No of Semi urban Location 47 47 94
No of SHG's/JLG's/Grameen/Others (Specify
Group Type SHG/JLG)
777 778 1555
No of SHG's/JLG's /Grameen/Others (Specify
Members Type SHG/JLGMembers)
3829 3734 7563
Credit Operation
Total Disbursal Amount 2555000 1,828,000.00 4,383,000.00
Disbursement % Achieved as per B.P
Average Loan Size 9941.634241 11,078.79 10,386.26
Total Disbursal Group (Specify Group
Type………………………………..)
0 778 778
Total Disbursal Members (Accounts) (Specify
Members Type……………………….)
257 165 422
No of Active Loanee 1256 165 1421
Loan Outstanding Amount to Field 8957129 9,463,615.00 18,420,744.00
No of Loan/Field Officer 5 4 9
Loan Outstanding/Loan Officer 1791425.8 2365903.75 2046749.333
Overdue Status (Overdue Amount/No of Overdue Account)
Overdue Amount of Less than 30 days 2666 5166 7832
Overdue Members of Less than 30 days 3 2 5
Overdue Amount of Less than 60 days 1833 1833 3666
Overdue Members of Less than 60 days 2 2 4
Overdue Ammount of more than 90 days 1000 1000 2000
Overdue Members of more than 90 days 1 1 2
Overdue Amount of more than 120 days 43073 48345 91418
Overdue Members of more than 120 days 10 5 15
Demand/Collection Status
Demand Principal 1304147 1,300,460.00 2,604,607.00
Principal Collected (Excluding prepayment) 1301484 1,295,294.00 2,596,778.00
Prepayment Collection 17166 18,922.00 36,088.00
Demand Interest 177117 191,357.00 368,474.00
Interest Collected 169214 182,787.00 352,001.00
Current Repayment Rate (In %) 1470696.841 1478079.732 2948777.786
Overdue Pricipal Amount 58117 58117
Saving
Total Saving Amount 0 0
External Borrowing (Agency Wise)
1 State Bank of Inda 5000000 5,000,000.00 10,000,000.00
2 SIDBI 5000000 5,000,000.00 10,000,000.00
3 Ananya Finance for Inclusive Growth Pvt. Ltd. 23000000 23,000,000.00 46,000,000.00
4 Indian Bank 2500000 2,500,000.00 5,000,000.00
5 Rashtriya Mahila Kosh 7500000 7,500,000.00 15,000,000.00
6 BASIX-LAMP Fund 7500000 1,500,000.00 9,000,000.00

External Outstanding (Agency Wise)
1 State Bank of Inda 229385.73 220,389.73 220,389.73
2 SIDBI 1668000 1,549,000.00 1,549,000.00
3 Ananya Finance for Inclusive Growth Pvt. Ltd. 1944644 1,805,755.00 1,805,755.00
4 Indian Bank 1363198 1,405,388.00 1,405,388.00
5 Rashtriya Mahila Kosh 5638063 5,300,000.00 5,300,000.00
6 BASIX-LAMP Fund 5638063 1,500,000.00 1,500,000.00
Source: Operational Performance Report, VAMA

VAMA (Bal-MahilaVikasSamiti)
9-C, MaharanaPratap Nagar,
Near Jiwaji Club,
Gwalior- 474009 Madhya Pradesh,
INDIA Telephone: +91-751 2457438
Email: bmvs1988@yahoo.co.in
vama1988@rediffmail.com
Website: www.vamaindia.org.

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