Regulating Microfinance in India

As reported in The Telegraph, Kolkata, India

Mumbai, Jan. 19: The Reserve Bank of India should ideally have regulatory oversight over microfinance institutions and the interest rate that these micro-lenders charge should be capped at 24 per cent, said a committee formed by the central bank to suggest ways to improve the functioning of the sector.

The committee under the chairmanship of Y. H. Malegam, a senior member on RBI’s central board of directors, said if Nabard was designated as the regulator under the proposed Micro Finance (Development and Regulation Bill) 2010, it should work in close co-ordination with the central bank to frame regulations.

It also suggested the creation of a new category of non-banking finance companies (NBFCs) operating in the sector that will be designated as NBFC-MFIs.

The recommendations come at a time MFIs have been under the spotlight after 30 persons reportedly committed suicide in Andhra Pradesh last year after being harassed by recovery agents sent out by microfinance companies.

The incident prompted the Andhra government to bring a regulation which stipulated that MFIs could not deploy agents to facilitate loan recovery and that loan repayment should not be less than a month from the earlier practice of weekly collections. The move exacerbated concerns that the non-performing assets of the MFIs would rise, impacting bank lending to the sector.

The committee recommended that the MFIs should not use coercive methods and should be subject to severe penalties if such methods are used. It also recommended a margin cap (a limit on the difference between the amount charged to the borrower and the cost of funds to the MFI) of 10 per cent for entities that have an outstanding loan portfolio of Rs 100 crore. Apart from such a cap, it suggested a ceiling on individual loans to bring down the effective interest rate to reasonable levels.

For transparency in the interest rate structure, the panel said there should be only three components in the pricing of the loan — a processing fee not exceeding 1 per cent of the gross loan amount, interest charge and the insurance premium.

According to the committee, an NBFC which qualifies as an NBFC-MFI should satisfy various conditions. While 90 per cent of its total assets must comprise loan given to a borrower whose annual income does not exceed Rs 50,000, the amount of the loan should not exceed Rs 25,000 and the total outstanding indebtedness of the borrower, including the loan, should not exceed Rs 25,000. Moreover, the loan should be given without any collateral.

However, the committee had different views on regulation or compliance. In addition to the RBI, it said the responsibility of compliance would have to be borne by the MFIs, industry associations, and banks.

The committee said the central bank could have both on-site and off-site supervision. However, on-site supervision could be confined to the larger entities.

It added that the RBI should have the power to remove from office the CEO and/or a director in the event of persistent violation of the regulations. It ought to also have the power to deregister an MFI and prevent it from operating in the sector.

Meanwhile, the RBI today relaxed the debt restructuring norms for the microfinance sector.

Under the new norms, which will remain effective till March 31, 2011, banks will be allowed to treat the restructured advances to the MFIs as standard assets even if such loans are not fully secured.

The decision will mean that banks will not have to make higher provisions on such restructured loans.

In India it has been an interesting year for the field of microfinance. The largest organization in India raised $350million dollars though an Initial Public Offering and now faces increasing scrutiny for their lending practices and high interest rates, which have allegedly, have been linked to a number of suicides.

There may be a host of different reasons for some of these issues - some that may not even be directly related to the organization. At the end of the day they are still providing a service that is otherwise not accessible for the poor.

We are cognizant of what is going on and are happy to report that our projects are still doing well. We have kept the loans to a manageable size and our partner organization works weekly with borrowers to provide holistic support– not just microcredit. This leads to a better and stronger relationship with the borrower that goes beyond the weekly financial transactions. At least a third of borrowers also use other services provided by our partner – from schooling for their children, to skills training for adults.

I continue to be humbled when I observe and interact with our partner organization Emmanuel Ministries Calcutta. They keep their focus and mission clear in their efforts to help he marginalized. I also appreciate that the staff and director have kept us real in our own mission to affect poverty through microcredit.

My name is Subhasis Chatterjee and I have been coordinating the micro credit project for Emmanuel Ministries, Kolkata, India. The project was officially launched on the 21^ST of August, 2008 in two different units of the organization, namely, New Market and Lakhermath units.

 Micro Credit was very well received in both the units as loans were given to poor women who were excluded from the banking sector. All the beneficiaries were below the poverty line who were engaged at small trades in the market areas such as small eatery stalls, cheap garments, tea and snacks stalls, fruits, etc. We had fixed an upper limit of Rs.10000 for new members in a group (10000 rupees is roughly equivalent to 250USD). The group size varies from three to six, but generally there are four women in one group. Almost all recipients profited from the loans we had advanced from the time the project got underway. Some made more progress than others but  overall every person in the group benefited to a certain degree over the term period of one year. Our primary motive was to help these women and their families to break free from the clutches of poverty over a few loan cycles. Thus, in keeping with the organizational goal of helping the marginalized people, Micro Credit actually fits in well with the overall goal of Emmanuel Ministries.

In the past one year and four months of micro credit. operations we have noticed a desire among recipients to improve their economic status by improving on their business margins, as well as to provide for their families.  Most of the group members have actually paid off their loans before their term period of one year, an option that they were given  at the beginning of their weekly repayments. There have been some delays and only very few have yet to complete their repayments in full. The concept of group dynamics is beginning to take shape as members collectively realize the benefits of consistent repayments in order to become eligible for a larger loan in future.

I have been able to see the participants  from close quarters and it was a learning experience for me as I saw the way they invested in small amounts and then waited for the returns to materialize. This is especially true in the Lakhermath area which is not really a business area. The problem with the poor to whom we  advanced loans is that they have to provide for their dependents and, in the process, the margins get eaten away for consumption purposes. It is a situation that is common for most and the increase in their overall economic condition takes time.  We have, however, begun  noticing small improvements in the participants’  economic conditions as a result of the loans that have so far been given and utilized. Most of the members are in their second loan cycle after having repaid the first one in full. Over 50 members in both the units have either taken the second loan or are in the process of doing so. There are some new members who have joined and of course there are many who are waiting.

We are, however, taking it slow and easy with our advances and trying to learn how best we can serve the ones who are quite poor but who are working or capable of working for some gain/profits. It has certainly been a revealing experience for me as I have to come to understand the difficult circumstances in which the poor eke out a living. Mircocredit has definitely contributed tangibly for the development of the poor who are excluded from the mainstream banking sector in India.

First of all, I want to thank all our donors for your generous gifts to Prana in 2009. I just came back from India and I was able to see first hand the effects of our contribution in the lives of the people who have taken loans. Over three days I visited both our project sites and was invited to hand out loans to the  newest groups.

The first day I visited Lakhermath with our partner organizations Project Manager Subhasis and witnessed the repayments.

At New Market

As each woman came and repaid their weekly dues,  chatted with them and they unequivocally expressed their gratitude. These were grateful people –they were grateful for the access to low cost capital. Some mentioned they were hoping to repay their sooner so they would become eligible for the next higher loan.

The second day  Jill joined me in visiting  the actual business sites. We began by driving down to New Market, a major shopping district, where we  met Subhasis and the local project coordinator, Suchandra.  

We walked along the busy streets adjoining the large indoor market and met the family members who oversee the stalls and stands during the day. We visited with Mina Sonker’s husband who sells seasonal fruits outside of the New Market shopping area. He has a thriving business with good quality fruits. He was selling oranges and gooseberries. Close to him was Chanda Devi’s family fruit stall as well. There is healthy competition with adequate respect for each other.

Next we walked over to Saraswati’s food business. She cooksfood at home and sends it  with her teenage son who sells it from his street corner stall. We also visited  Janki Mullick’s stall with a display of hair accessories and Rekha Mullick’s husband who sells purses and clothes.

Fashion Accessories

After visiting about 13 businesses, Jill had to leave and Subhasis and I decided  to head to Lakhermath and visit the women there. We were hungry by now and took advantage of the chance to stop at Sunita Sonker’s husband’s food stall. Realizing that he would not let us pay for our meal – as a way of expressing his gratefulness - we made a pact with him that we would eat there provided he let us pay.  The “Channa Batura (chick peas and fried bread)” was freshly prepared and extremely tasty. I was happy to support one of our entrepreneurs and could have eaten another helping!

As I made my visit to the homes of the women in Lakhermath, I was struck by the living conditions. I visited family after family – who lived in 2-room homes which comprised less than a hundred 150 square feet. Beds were elevated on cinder blocks to provide storage space and nails in the walls were used to hang clothes.  

Dolly Thakur used her first loan to help in her family business of “book binding.” The loan was used to  buy supplies such as glue, fabric and cardboard. She has taken a  second loan to increase her inventory of supplies. Dolly lives and works in Lakhermath, which was known as a red light district in Kolkata. Parts of Lakhermath continue to be a active with prostitution.  

Making Cell Phone Covers

Usha was formerly trained throught the  the Erica Project run by Emmanuel Ministries. Through the Erica Project, Usha learned to use  beads and fabric to make handicrafts. With  this skill and the $250 loan from EMC, she started a business making custom cell phone covers. She sells them mostly at local schools and colleges where young people describe certain designs and she  makes them. Her business appears to be profitable and Usha  was quite grateful for the access to the loan.

Geeta lives with her husband and 10-year-old son in Lakhermath. Her husband sells fish in one of the local markets. Gita used  her loan to buy and sell Indian outfits. She sells them on credit to women from her neighborhood who pay in installments.  

Home Sari Store

Dolly Dutta has a thriving business selling sari’s and gold plated jewellary. She buys them from the wholesale market and then sells them on credit. She is a savvy business woman and her business has done very well – she is known in her neighborhood and people come to her “store” at her home. 

Most of women who are part of the project in  Lakhermath  have  taken loans and started businesses which they own and operate themselves. In contrast the women who took loans as part of the New Market project have invested  their loans in  their family businesses which are often operated by their husbands.

This year our partner organization Emmanuel ministries has volunteered to participate in an assessment—through individual interviews with loan participants, to understand and document specific ways the loans have impacted families’ income, purchases, and quality of life.

Later in the week, Jill and I were invited to attend as honored guests at the  Calcutta Emmanuel School awards ceremony. Students who  had performed well, academically and  socially were recognized and given prizes. Emmanuel School is a one of the many other projects which  our partner organization operates in Kolkata. The School educates  about 500 underprivileged children. The kids’ education and one  nutritious meal per day are completely free to the families. Jill and I have sponsored three children who attended the school for the last nine  years and had the chance to talk with them for a few minutes. They were disappointed that we had not brought our boys along for them to meet. 

Any other day one would see this special recognition ceremony as routine. Yet in this case it was different – each of these kids came from a very poor family and some of the children are orphaned.  Calcutta Emmanuel School is slowly leveling  the playing field by giving these kids a high quality education andproficiency in spoken and written English. If you are interested in knowing more as well as in supporting the school please contact Beyond the Horizon which is a US-based nonprofit that helps fund the school (www.beyondthehorizon.us).

Handing out loans

The day before we headed back to the States I had the privilege of handing out loans to the newest group of members. One by one they walked up with the traditional gesture of hands folded in front of their chests, which means “Namaste” in India – and thanked me for the loan.

I am constantly reminded as to how privileged I am. Being able to lend a helping hand is  not just a calling but a responsibility. I was reoriented and inspired by being in touch with so many people whose lives are improving – in part because we share a bit of our wealth.

It is always encouraging for organizations and their suporters to see that their efforts are helping to create positive change. Here is one example:

Seema borrowed Rupees 5,000 (about $125) for the first time in August of 2008.  She had been working at her in-law’s food stall and she was paid on a daily basis. She was, therefore, dependent on her in-laws for income and did not have much anything to claim as her own. Seema had lost her husband about eight years ago and desired to start her own food business in a very small way. With the help of our microloan, she began to sell home cooked food not very far from the one where she had worked earlier with her In-laws. One of her family members helped her as well and soon her sales began to increase in volume. 

Her weekly repayments were consistent and she displayed a strong desire to become financially independent. Within a short time she was began to see profits from her business and she repaid her first loan of Rs.5000 by April of 2009 – less than eight months from date of borrowing!  

Due to her diligence in repayment, she was automatically eligible for her second loan!   This time around, Seema borrowed Rs.15000 ($375) and till date her weekly repayments continues to remain consistent. The improvement in her life is quite visible in her disposition and regular weekly repayments.  She continues to display her enthusiasm in managing the food stall.  Within a span of a little over a year, she has improved her economic condition and has been able to provide for herself as well as her two children. .

Seema’s story is one of “empowerment”! Once dependent on her in-laws she is now able to care for herself and her family.  

The following is a recount of our visit to our Kolkata project early this year. I was joined on this visit by three other board members Rebecca, Suchetha and Jill. - Amit

The visit began with a ride to the airport with the Associate Director of EMC-Shajan George to pick up Suchi and her friend Naomi at 8AM. After a short drive to Emmanuel Ministies and quick introductions over cups of tea, we headed to our first micro credit site-“New Market!” We were accompanied by Subhasis who manages the micro credit project along with Ilora, the project coordinator, and Suchandra, who is the on-site project supervisor. This 200 year old market, also known as the S.S Hogg Market, was the first “mall” of India built during the British rule. With over a 1000 stores it is arguably the city’s busiest landmark.

Behind the retail area there is a fairly large slum. The majority of the people living here are part of the informal economy with income sources ranging from selling fruits and vegetables to providing domestic help to local households.

Our partner organization Emmanuel Ministries has been working with the children of this slum for a number of years now - providing them with education and food as well as facilitating access to the various bureaucracies as needed. The micro credit project was a natural fit due to these established relationships within the community, through children and their families.

At the New Market community center

We were welcomed into the tin roofed community center by a group of women and a few young men. Most of them had already received loans while a few of them were going through the initial meeting stages. We sat on bright red plastic chairs while the 20 women and few young men who were gathered to meet us sat attentively in front of us on the floor. It was a chance to speak first hand with women who had received loans about what they had done with the investment.

The loan has helped Chanda Devi’s fruit sales and now she able to save money which she was unable to do previously, as most of her earning went towards inventory purchases. Tulsi Devi, a grandmother over seventy years old, is one of the most enterprising women within the group. She sells seasonal items and took some ribbing from the other women as she has been quite successful. One by one each of the women introduced themselves and told us how they were utilizing the loans.

I want to share here three stories that show the transforming nature of micro credit that we have seen in our short existence in Kolkata. I was humbled listening to these experiences at the same time I realized we had already begun to achieve what we had set out to do.

Women entrepreneurs

Young Seema Sonkar’s story showed how small loans help in empowerment. After the death of her husband Seema has been living with her in-laws and was completely dependant on the daily allowance she received from them who poor themselves. After using the micro loan, Seema was able to start a trade–selling bangles and other accessories. She is not as dependant on her in-laws and is slowly walking the road to self sufficiency.

Another life changing experience happened for Kalpana Rai. A hard working middle aged woman, Kalpana is a community leader for Emmanuel Ministries in New Market. A few years ago Kalpana’s son took on fairly large loan form a loan shark to invest in a business which failed. Kalpana had taken on her son’s debt and had been paying Rs1000 a month as interest on a principal of Rs10, 000. She used the Prana loan to increase her inventory of saris which she sells door to door. The additional income allowed her to pay of more than 50% of the principal amount owed to the loan shark. She is extremely grateful as she now sees herself getting out of the clutches of the loan shark.

I was glad to see our small efforts had already begun achieving meaningful results!

Our Young Entrepreneurs

I next looked into the bright and hopeful eyes of four young people. achieved some success and needed to get an official “stall/space” to make their business take off. Emmanuel Ministries has been working with their community developer to help facilitate the process for these young people,

There was no fear there, idealism maybe but a lot of optimism: Ravi, Jyoti, Moni and Vikas had taken a loan as a group and had been buying clothing from the whole sale market and retailing them in the New Market area.  As I sat listening and joking with them, I desperately wanted them to succeed. These young people were born into circumstances that they did not choose but they had a joy that showed on their faces which t belied their immediate environment. I was proud of them!

The women were extremely hospitable- keeping in mind our weak stomachs that could be upset by even the thought of drinking un-bottled water, we were served soda and potato chips. Children and youth from the New Market project came and handed each one of us a beautiful decorative piece that they had made by hand to show us their gratitude. Even though I grew up in India, each time I interact with the poor, I am amazed and humbled by their generosity.

From New Market – we drove to the Vijayan Pavamani Center to visit one of the many other projects of Emmanuel ministries. We toured one of the first pavement clubs started by Vijayan and Premila Pavamani. This type of club functions as an informal and free day care center and provides education and food to some 400 kids from the streets of Calcutta who, most likely, would otherwise be begging or be working exploitively. We also visited the HIV/AIDS treatment center where Jen, a volunteer from South Korea gave us an overview of the program. In India – where even the medical profession is apprehensive of touching HIV/AIDS patient, this center provides a rare space not just for medical attention but where patients can also feel their individual humanity.

We then drove back to the office to have a working lunch with the EMC core team. Over homemade mint and cheese sandwiches, soup, fried chicken, and potatoes we discussed the effects of the microcredit project, policies and procedures and our learning experiences. Premila Pavamani, the Executive Director, stressed on the point that we need to evaluate effects on the individual and not worry about the number of loans as much.

After lunch we got into the Tata Sumo and headed to the second site. Lakhemath is one of the red light districts of Kolkata. We were joined by the onsite project supervisor Bibha.

At Lakhermath we were received with the same hospitality that we received at New Market. The women hastily gave us plastic stools to sit on, followed by some refreshments. They were happy to see us, and grateful, but had questions about future loans.

Most of these women are in the garment business. Some sell door to door and others sell from their homes. One lady has a business where she takes her payments in installments and therefore makes it easier for the buyer. Of note was the story of Shyamali Pal who borrowed $250 to expand her business of home food delivery and manufacturing paper bags. The loan has helped her grow her business to the point that she has employed two other people to help her.

We ended the day with a dinner hosted by Prana for the EMC core team. These men and women work tirelessly in the field–often under difficult circumstances, with a smile on their face and a strong passion in their hearts. They are the Change Makers! We were honored to dine with them.

As published in:

THE TELEGRAPH, Calcutta, India

Issue Date: Thursday , December 18 , 2008

Untouched by the slump, the microfinance industry continues to provide opportunities to professionals across the spectrum. Prasun Chaudhuri reports Anindya Banerjee, a 25-year-old MBA from the Institute of Business Management and Research in Calcutta, joined Bandhan, one of the world’s largest microfinance institutes (MFIs), six months ago as a financial analyst. “I had come here for a project during my postgraduate studies. Since then, I have been hooked to the work. In India, the growth and opportunities in this sector are huge,” he exclaims.

Banerjee is in good company. Students at top business schools — including the Indian Institutes of Management (IIMs), and those at Yale and even Harvard — seem to have woken up to the microfinance miracle.

The financial services industry has been trimming its workforce furiously. Yet amidst the gloom, there’s a silver lining — the microfinance industry is going great guns.

“The brightest minds in the financial business are showing an interest in microfinance. In India, the sector will continue to grow because of the number of poor people here. There may be constraints in some microfinance institutes because of the financial crisis, but the long-term prospects look bright,” says Justin Oliver, managing director of the Centre for Microfinance (CMF), a special cell of the Institute of Financial Management and Research (IFMR), Chennai.

Microfinance rests on the conviction that poor people can be both reliable borrowers and avid entrepreneurs. “Microfinance still works; it has not been hit by the meltdown process,” Nobel Prize winner Muhammad Yunus said at an International Labour Organisation symposium in Geneva recently.

What’s more, the sector had shown similar resilience during economic recessions in the past, in south-east Asia and south America in the 1990s. The industry hit the headlines last year when Yunus — nicknamed Bangladesh’s banker for the poor — received the Nobel Peace Prize for his efforts to “create economic and social development from below”. Other people too have been working relentlessly in the field, convincing banks and financial institutes that the poor can be trusted with small loans for minuscule business ventures.

“Agencies working in this area give loans to poor or low-income clients who have traditionally been denied credit by banks because of their inability to pledge collateral,” says Chandra Sekhar Ghosh, founder and chief executive of Bandhan. Adds Bhaswar Moitra, professor of economics at Jadavpur University, “Because banks or financial institutes themselves cannot recover loans from the poor, they consider MFIs a safe bet for offering credit.”

The poor rarely default on loans, and the rate of debt recovery is well over 95 per cent. Little wonder then that in India the sector is growing at a compound annual rate of 76 per cent. “With such a high rate of growth, it will not be difficult for young professionals to find jobs in banks, MFIs and non-governmental organisations,” says Sankar Datta, founder and executive director of Basix India, a Hyderabad-based MFI. “One can also tap venture capital firms and corporate social responsibility divisions of banks and private companies,” he adds.

However, as Datta points out, unless one has an inclination for social work, he or she won’t thrive in this profession. “Those who are lured by huge salaries and a comfortable life should keep away. Social commitment is the key to success here,” says Ghosh. But then, the job satisfaction is immense and fulfilment from participating in a social revolution unparalleled.

Several institutes have sprung up to impart education and train professionals to fill the demand for qualified people in this sector. In most business schools, the economics and finance curricula have a section on microfinance. “The Institute of Rural Management, Anand (IRMA), has one of the best courses in microfinance management,” says Datta who taught at the institute. IIM, Ahmedabad (IIM-A), and IIM, Lucknow (IIM-L), offer the subject as an elective in postgraduate programmes (PGP) in management and PGP in agri-business management (PGP-ABM). Recently, ICICI bank set up a group at IIM-A for research on microfinance, with M.S. Sriram, professor of microfinance, as the chairperson.

IFMR too offers an elective course in microfinance. The Centre for Microfinance, which was launched last year, is in partnership with various MFIs, banks, investors, and training and academic institutes in India as well as abroad, including the Massachusetts Institute of Technology (MIT), Yale, Harvard, New York University and the Indian School of Business.

The microfinance miracle

The economic crisis could actually turn out to be an opportunity for the microfinance sector in its search for managers and analysts,” says Oliver. The Centre for Microfinance has two short courses and is planning to launch a more extensive one soon.

A few private colleges have introduced long-term courses. In April this year, Sa-Dhan — a New Delhi-based association of community development finance institutions — in collaboration with the Indian Institute of Banking and Finance (IIBF), Lucknow, launched a diploma course for microfinance professionals. The institute also plans to offer specalised courses in risk management and product development.

The Indian School of Microfinance for Women (ISMW), Ahmedabad, has short courses on microfinance for development. “Since most of the beneficiaries in the sector are women, our courses are meant for them,” says Joy Deshmukh-Ranadive, director of the ISMW. “Growth lies in learning about the diverse dimensions of microfinance while on the job,” she says. Deshmukh-Ranadive feels that opportunities for microfinance professionals are likely to improve in the coming days, as marketers from various sectors are increasingly shifting their focus to rural markets.

So is it a lucrative career option? “It is not lucrative, but the pay is decent. Also, it has options for people across the spectrum. From financial analysts to field staff, there is a wide range of opportunities,” says Ghosh. For example, for the post of field staff or loan officer, matriculates between 18 and 28 years of age — who need not be computer literate or English speaking — are eligible. Promotions and growth opportunities are decent and an experienced credit officer can move to accounting or administration after three years of experience. The salary for loan officers at the entry level is between Rs 6,000 and Rs 8,000. However, those attached to banks and corporations can expect more.

Fresh management graduates can draw a starting salary of Rs 4 lakh to Rs 7.5 lakh per annum. They are usually hired as business development managers and entrusted with research and product development responsibilities so that services are delivered to the poor effectively. “They are major decision makers, and their job is interesting as well as challenging,” says Datta.

Experts believe that prospects will be even brighter when the sector integrates with the mainstream finance sector more closely. Says P. Mohanaiah, chief general manager, the National Bank for Agriculture and Rural Development (Nabard), “There is virtually unlimited scope for growth, and the benefits have to be reached to many more millions of the poor.” According to him, only those MFIs will be hit by the meltdown that depend on foreign institutes for aid.

IIM-A professor Sriram too agrees. “The sector is still commercially viable and profitable because it is not integrated with global markets and has also remained relatively out of the political radar. If microfinance organisations continue to grow at the same pace and without any interference from the state, there will be more opportunities for management graduates.”

‘I get to listen to very strong and motivated women’ Abhishek Chakrabarti, assistant branch manager of Bandhan, clocks in at 7:30am. He works with five credit officers and a couple of support staff at the branch office, usually located in a village or an urban slum.A manager at a microfinance organisation has a long but off-the-beaten track day. After going through a database of borrowers, Chakrabarti identifies specific self-help groups of micro entrepreneurs for monthly meetings. The groups are formed after a thorough survey of households in the area and identifying prospective borrowers. Each group consists of 20-30 individuals (usually women).

At the meetings new loans are disbursed and loan repayments monitored. This is the part Chakrabarti enjoys most. “We get to interact with some very strong and motivated women who rarely fail to repay loans. I listen to what they have to say for tips on how to tackle life’s greatest challenges,” he says.

On rare occasions, Chakrabarti has to handle loan non-repayments and loan frauds. In such cases, he has to visit a borrower’s home and talk to him or her personally.

Chakrabarti has to meet at least two self-help groups in different locations every day. He returns to the branch office around 4pm and checks the ledgers and balance sheets of collections and loan disbursements. His day ends around 8pm.