2009 sp report english 1

8/9/2019 2009 SP Report English 1

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FY 2009 SOCIAL PERFORMANCE STANDARDS REP

DIMENSION STANDARD RELEVANCE OF THE STANDARD

INTENT Mission and social goals Social performance is the translation of an MFI'smission into practice. What is measured in socialperformance is related to an MFI's mission and sociagoals. This indicator assesses the MFI's statedcommitment to its social mission, its target marketand development objectives.

Governance Governance is a process by which a board ofdirectors guides an institution in fulfilling itscorporate mission. This indicator assesses the waythrough which board members' responsibilities andterms of services are disclosed. It also assessesboard composition and member's expertise and howthe institution reinforces board members knowledgeand commitment to social performance.

INTERNAL SYSTEMS ANDACTIVITIES: Strategies and

systems

Range of products and services Once the target population is identified, the MFI hasto work on the design of its financial products andservices so that they can fit the needs and theconstraints of clients. This indicator considers theintegrated approach to microfinance by assessingboth financial and non-financial products and servicesoffered by an MFI.

Training on social performance Staff training on social performance management isimportant to ensure that staff understand how theirwork helps the organisation achieve the socialmission. MFIs can use training as an opportunity tocapture staff feedback, enabling it to make changeswhere necessary so that its management systemsare fully aligned with the social mission.This indicatorassesses which MFI's members have receivedtraining on any aspect of social performance duringthe reporting year and the areas of training covered.

Staff performance appraisal and incentiv In order to ensure the validity of reported data andstaff performance on relevant areas of sociaperformance management, it is important to carryout staff appraisals. An MFI should also establish staffincentives to increase productivity and employeessatisfaction levels while complying with socialobjectives of the MFI. This indicator assesses whichareas of social performance an MFI appraise and theimplementation of a staff incentive system tied tosocial performance goals.

Market research on clients An MFI can use standard market research techniquesto identify clients' needs. Through market researchan MFI can refine existing products and develop newones. This is very useful in meeting clients' needsretaining clients, reaching new ones and reducingdrop-out rates. This indicator assesses how and how

INTENTINTERNAL SYSTEMS &

ACTIVITIESOUTPUTS IMPACTOUTCOMES

This Social Performance Standards Report was created by MIX to collect information on the 22 core indicators selected by The SoTask Force. The whole document consists of 5 parts: 1. the social performance standards framework and description, 2. the social performanPart I, 3. the social performance standards report Part II, 4. the table for poverty measurement, and 5. a glossary. Part I of the report containsmainly focus on your MFI's mission, products and services offered, social responsibility to clients and to staff, and clients outreach. Part II cowhich focus on employment creation, social responsibility to community and to environment, and children education. Finally, the table for pocontains the remaining 3 indicators on poverty level. The indicators follow a specific framework that looks at the entire process by which sociThe framework includes analysis of the intent of the institutions, the effectiveness of their internal systems and activities in meeting theseoutputs, and success in effecting positive changes in the lives of clients. The MFI can provide any additional information related to each indifor comments. Finally, a glossary has been created to link those indicators which are most difficult to conceptualize and conform to a standindicators linked to the glossary are underlined and their definition can be viewed by clicking on the hyperlinks provided.


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Poverty assessment To fulfill its social mission, an MFI should use thpoverty assessment strategy that is appropriate foits clientele, development objectives, and locaoperating conditions. An MFI can adopt measurementools to assess how and why its clients livinconditions change over time. Recent initiatives, sucas the Progress Out of Poverty Index (PPI) and thPoverty Assessment Tool (PAT) enable the direcmeasurement of household poverty using simple

robust indicators, statistically correlated witdifferent poverty lines.This indicator assesses thtools adopted to track the poverty status of thclients. To know more about PAT visit this linkhttp://www.povertytools.org/

To know more about PPI, visit this linkhttp://www.progressoutofpoverty.org/

INTERNAL SYSTEMS ANDACTIVITIES: Policies and

compliance

Social responsibility to clients Social responsibility to clients is a fundamentadimension of an MFI's social performance. Thiindicator is linked to The Smart Campaign, whicembodies a set of core principles for the treatment omicrofinance clients - the minimum standards thaclients should expect to receive when doing busines

with a microfinance institution. The principles at thheart of Smart Microfinance are:1)Avoidance of Over-Indebtedness; 2)Transparenand Responsible Pricing; 3)Appropriate CollectionPractices; 4)Ethical Staff Behavior; 5)Mechanisms foRedress of Grievances; 6)Privacy of Client Data. Fomore information about the Smart Campaign, yocan visit: http://www.smartcampaign.org/

Transparency on cost of services to clien Interest rates should be set to ensure thsustainability of the institution and long-termavailability of the service, but at the same timinstitutions should actively be looking for ways treduce the cost for their clients. This indicatoassesses the effective interest rate for the main loa

product offered and the estimated percentage oclients who are borrowing from other institutions omoney lenders.

Social responsibility to staff Human resources policy is important to ensure thaemployees are treated fairly. At the same time, it iimportant to monitor employee satisfaction and hava system in place to understand employees concernand needs. This indicator assesses the MFI's policregarding social responsibility to staff, by looking aits human resources policy in place, systems tmonitor employees satisfaction and staff turnoverate, as a measure of staff satisfaction.

Social responsibility to community An MFI can have a relevant impact in the communitwhere it operates not only through the provision ofinancial services to its clients but also through thimplementation of policies and actions aimed tsupport community development at large. Thindicator assesses the steps that the MFI takes in thdirection.

Social responsibility to environment The impact of microenterprises' activity on tenviornment can be particular significant due to thlow technological level, the general lack of regulatorsupervision, and the absence of supportininfrastructure and services in their country ooperations. This indicator assesses whether the MFhas any policies and initiatives in place to mitigatenvironmental impacts of financed enterprises.

OUTPUTS AND OUTCOMES:Achievement of social objectives

Geographic outreach The provision of financial services to differegeographic areas can support income anemployment generation to underserved rural anurban clients. This indicator assesses the number oclients reached in the different geographical areaand in the areas below the national average level odevelopment. It also asseses the ability of the MFI tserve clients in those areas where no other financiaservices are provided.

Women outreach If an MFI has women as its target market, then aninitiative in place needs to be reflected in the numbe

of women clients actually reached. This indicatoassesses the number of women clients (borrowerand savers) reached by the MFI.

Clients outreach Outreach is determined by the types and numbers oclients reached with microfinancial


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Employment At the community level, microenterprises cagenerate new jobs, thus providing higher and morstable income of the community as a whole. Thindicator assesses employment generatioopportunities created by the supported enterprises.

Children in School Increased earnings derived from microenterpriseallow poor people to better plan and invest in thechildren's future. This indicator assesses the numbeof clients' children who are attending school icountries where school attendance is less than 90%at secondary or primary level.

Poor and very poor clients at entry In order to assess the poverty levels of the clients, aMFI should use the poverty line most appropriate This indicator assesses the poverty line(s) apoverty tool(s) used to estimate the percentage oentering/recently joined clients who are below and ithe bottom 50% of the poverty line.

Clients in poverty after 3/5 years Measuring a client's poverty status at entry antracking this status over time is an importanindicator that MFIs use to evaluate clients' well-beingThis indicator assesses the estimated percentage oclients who joined the institution 3 or 5 years ago anwho remain below the poverty line.

Clients out of poverty after 3/5 years By using appropriate poverty assessment tools andtracking the same sample of clients over time, an MFcan assess whether clients move out of poverty. Thindicator assesses the percentage of active clientwho were 'poor' when they joined the institution 3 o5 years ago and who are estimated to have moveout of poverty.


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FY 2009 SOCIAL PERFORMANCE STANDARDS REPORT- PART I

BASIC DETAILS: THE MFI ANSWERS COMMENTS

Name of the MFI:

Country of operations:

Year microfinance operations began:

Report for Fiscal Year ended (day - month - fiscal year 2009):

Number of loan accounts:

Number of savings accounts:

) THE RESPONDENT

Name of respondent(s):

Title of respondent(s):

Office Address (Street, City and Zip Code):

Contact e-mail address:

Contact telephone number:

INTENT

In which year was the mission statement formulated (or updated)?

Very poor clients:

Poor clients:

If not, in which ways are the procedures documented?

How is your institution's Board composed?(Check all that apply):

What is the total number of your Board members?

What is the number of women on your Board?

Legal form:

Number of currently active borrowers (not loan accounts):

Number of currently voluntary savers (not savings accounts):

Mission and Social Goals

What is your MFI's social mission?

What is the poverty level of the clients that your institution aims to r

If you checked the boxes " very poor or poor clients", whichreference point/benchmark do you use for estimating the povertylevel of your clients? (Check all that apply):

What is the target market of your institution? (Check all thatapply):

What kind of enterprises does your institution support? (Check all th

Which development objectives does your institution specificallypursue through its provision of financial and non financial productsand services? (Check all that apply):

Governance

Are Board members' responsibilities and terms of services specifiedby the Institution's bylaws? (Check all that apply):

What are the areas of expertise of your institution's Boardmembers?(Check all that apply):

If you have representatives on your Board of your target market (asreported in question 1e) which categories of c lients are

represented?How does your institution reinforce Board members knowledge of,and commitment to, social performance? (Check all that apply):

Em lo ment

Health im rov

Adult educati

Gender e ualit an

Other ( le

Inde endent/ rofes

Gove

Clients

Adolescents and outh (b

Ver oPoor clienLow income cli

Small entMicroen

Medium

Clients livin in ur

Indi enous eo le an

Financial a

Develo ment/non

Re resentatives of

Develo ment o

Povert r

Lar e enter ris

Growth of e

Clients livin in

Other ( l

We have a standin social erformance coWe or anise staff and client visits to hel boardWe ensure that social erformance issues are id

Children

Not a s ecific foc

No s ecific tar

Persons in the bottom 50% of those livin belPersons livin on less than the USOther ( l

Persons livin below the overtPersons living on less than UOther l

Wo

Le al

Board minCommiteeManual of

Youth o o

Water and sanit

Financial in

Governmen

Housin

Re resentatives

Other (Pl

Other Pl

Other Plea

Other (Pl


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Is the insurance voluntary or compulsory?

General principles/strategies

Specific operations/procedures

Savings:

If your institution does not offer savings, please skip this question.Otherwise, what kind of savings products does it offer? (Check allthat apply):

Insurance:

If your institution does not offer insurance products, please skip thisquestion. Otherwise, what type of insurance does it offer? (Check allthat apply):

Other financial services:

If your institution does not offer other financial services, please skipthis question. Otherwise, what type of services does it offer? (Checkall that apply):

What are the lending methodologies of your institution? (Check all t

Which of the following non-financial services does your institutionoffer to its clients (Check all that apply):

Enterprise services:

If your institution does not offer enterprises services, please skipthis question. Otherwise, what type of services does it offer? (Checkall that apply):

Education:

If your institution does not offer education services, please skip thisquestion. Otherwise, what type of services does it offer? (Check all

that apply):

Health services:

If your institution does not offer health services, please skip thisquestion. Otherwise, what type of services does it offer? (Check allthat apply):

Women empowerment:

If your institution does not offer services for women'sempowerment, please skip this question. Otherwise, what type ofservices does it offer? (Check all that apply):

Training of staff on social performance

Did any of your staff participate in training or orientation sessionsrelated to any aspect of social performance management, during thereporting year?

If not, and not planning,please explain why not:

If not, please skip this question. Otherwise, which staff havereceived some kind of training on social performance managementduring the reporting year? (Check all that apply):

On which areas related to social performance does your institutionoffer staff training?

Staff performance appraisal and incentives

Does your institution conduct performance appraisals of staff inrelation to social performance management?


If not, please skip this question. Otherwise, which areas does yourinstitution appraise? (Check all that apply):

IndividuSolidarit

Financi

Enter rise ski

Loan off

To manaBoard m

Savin s faci

Life ins

A riculture insu

Other l

Debit/Cre

Pa menMone transfer/remit

House i

Credit lif

Checkin

S ecial ur o

Voluntar s

Back office staff (MIS,

Fixed term de

Counseling/legal servic

Basic health/nu

Business trainin to enhan

Women's ri hts education/Gender

Other ( leBusiness deve

Villa e

Middle ma

Women leadersTrainin on ri hts and res ons

Gender sensitivi

Over-indebtedCommunication with clientsAcce table racticCollectin oodPolic and rocedures

Referring clients complaints to tho

Abilit to attract new

W 'Outreach of remote

Bein res onsive

Cell ho

Basic medical seS ecial medical servi

Com ulsar savin

Health insuranceWork lace in

Children andOccu ational safet a

Other Ple

Mission orientaSocial ob e

Povert

Other (Ple

Other ( lea

Other Plea

Other (Ple

Other (Pl

Other (Ple

Other (Plea

Other (Plea


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d

e

6

a

b

1

7

a

Total number of borrowers at the beginning of the reporting period:

Total number of borrowers at the end of the reporting period:

Number of new borrowers during the period:

#DIV/0!

POLICIES AND COMPLIANCE

8

9

a How does your institution state the interest rate?

b Did you provide your EIR data to MFTranparency initiative?

d

e

10

a

If not, please skip this question. Otherwise, which areas does yourinstitution reward? (Check all that apply):

Which staff members qualify for these incentives? (Check all thatapply):

Market research on clients

Does your institution use market research to identify the needs ofclients and potential clients?


If not, please skip this question. Otherwise, how does yourinstitution identify the needs of clients and potential clients? (Checkall that apply):

How often does your institution conduct or commission marketresearch on clients?

Measuring client retention

Please provide the following data points to help us calculate yourinstitution's exit/dropout rate

Drop-out rate

How often does your institution conduct or commission exit surveysor receive informal feedback from exiting clients?

We are not sure why the MIXand MCRIl used the average inthe denminator. Statictacally

If any major event, external to the institution, has occurred thatmay have affected the drop-out rate please report it here:

Social Responsibility to clients

Please read through each of the following statements and mark theones that best describe your organization

Transparency on the costs of services to clients

MFTransparency is collecting this infomation so we should delete this question. MIX will get a list of the MFIs thatprovided information on EIR directly from MFTransparency periodically

Do you know the percentage of your clients that are borrowing fromother institutions? If yes, please provide the estimated percentage:

If you do not track the percentage of your clients who are borrowingfrom other institutions, skip this question. Otherwise, how do you

track this information?

Do you know the percentage of your clients that are borrowing frommoney lenders? If yes, provide the estimated percentage:

If you do not track the percentage of your clients who are borrowingfrom money lenders, skip this question. Otherwise, how do you trackthis information?

Social Responsibility to staff

Which of the following are included in your human resources policy?(Check all that apply):

Client satisfaction assessment int

A clear salar scaleMedical insur

Practices and roceduresPension co

Interviews wi

Loan ofBack office staff MIS

To mana

Retention/ DroPortfolio

Abilit to attract new cl

Women's outreaOutreach of rem

Qualit of interSocial da

Market research for dev

DeclininFlat inter

Middle m

Clients are told how their information will be used, and no external use is made of such data without client consent.

A mechanism to handle client's complaints is in place, has dedicated staff resources, and is actively used.

Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.

The financial institution does not charge clients for its own inefficiency. Its pricing and efficiency compare favorably to its peers and competitors.

All staff are trained to communicate effectively with clients, ensuring that they understand the product, the terms of the contract, their rights andobligations. Communications techniques address literacy limitations (e.g., reading contracts out loud, materials in local languages).

Prices, terms and conditions of all financial products are fully disclosed to the client prior to sale. This includes interest charges, insurancepremiums, minimum balances , all fees, penalties, linked products, 3rd party fees, and whether those can change over time.

Productivity targets and incentive systems reward growth only if portfolio quality is high and do not create biases in favor of lending too much toone client

The loan approval process evaluates borrower repayment capacity including over indebtedness. Loan approval does not rely solely on guarantees(whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.

Part of loans a

Monitored and re orted thAnnual sam le survSocial ratin surveOther le

Part of loans a raisalMonitored and re orted tAnnual sam le surve cSocial ratin surveOther le

The institutions corporate culture and human resources systems value and reward high standards of ethical behavior.

Other Plea

Other Plea

Other Ple


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k

Total number of staff at the end of the current reporting period:

Total number of staff at the beginning of the reporting period:

Number of exit staff during the reporting period

#DIV/0!

ACHIEVEMENT OF SOCIAL GOALS

11

a

Percentage: #DIV/0! #DIV/0!

b

If yes, what is the number of service points you have in these areas?

c What is the number of clients served in these areas?

d What is the total number of service points that you have?

e Percentage of service points you have in these areas: #DIV/0!

f Percentage of clients served in these areas: #DIV/0!

12

a Number of women active borrowers:

b Percentage of women active borrowers: #DIV/0!

c Number of women voluntary savers:

d Percentage of women voluntary savers: #DIV/0!

13

a Clients outreach by lending methodology

Percentage: #DIV/0! #DIV/0! #DIV/0!

b

c

d #DIV/0!

e

Please provide the following data points to help us calculate your

Staff turnover rate

Geographic outreach

Clients coverage in each geoographic area (counted in terms ofunique clients, not accounts):

Number of clients: Clients living in urban a Clients living in semi-urba

Number (please fill each column with appropriate numbers for the

Does your institution have regular service points located in areas w

Women outreach

Clients outreach by lending methodologies and other clients outreach (as reported in question 1e under INTENT)

Active borrowers receivingindividual loans

Active borrowers receivinggroup loans

Women active borrowersreceiving individual loans

Number (please fill each column with appropriate numbers for thereporting year):

If you can, please state the percentage of clients who have

If it applies, number of clients who are indigenous people or ethnicminorities :

Percentage of clients who are indigenous people or ethnic

Number of other clients that your institution target (specify

according to the target group):
http://opt/scribd/conversion/tmp/scratch2459/http://opt/scribd/conversion/tmp/scratch2459/


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FY 2009 SOCIAL PERFORMANCE STANDARDS REPORT- PART II

STRATEGIES AND SYSTEMS ANSWERS COMMENTS

Poverty levels that are not benchmarked:

POLICIES AND COMPLIANCE

ACHIEVEMENT OF SOCIAL GOALS

Poverty AssessmentFor which active clients does your institution measurethe poverty level? (check all the applies)

f your institution does not measure the poverty level of your

Poverty levels benchmarked to the national ornternational poverty lines:

f it applies, after what period of time (from entering)does your institution assess the poverty level of yourclients?

If you do not track this informationplease explain why not:

f it applies, how often does your institution trackchanges in poverty levels of the clients?

Social Responsibility to Community

Does your institution have a policy for socialresponsibility to the community? (Check all that apply):

Which of the following are included in your socialresponsibility policy (written or informal) towards yourcommunity? (Check all that apply):

f you have a policy and/or any initiative in place

Social Responsibility to Environment

Does the MFI have an environmental policy forclients/microenterprises it finances? (Check all thatapply):

f not, you can skip this question. Otherwise, which ofthe following are included in it? (Check all that apply):

f you have a policy and/or any initiative in placerelated to social responsibility to the environment forsupported enterprises (as checked above) and want toshare it , you can write a short summary here. (Feelfree to provide web links to related documents and/orsend related documents to MIX, if you want them to bepublished in the MIX Market library):

Does the MFI have an environmental policy for its ownorganization's practices that includes bothheadquarters and branches (energy, water, paper,waste) ? (Check all that apply):

f not, you can skip this question. Otherwise, which ofthe following are included in it? (Check all that apply):

Su ort local communities for so

Identif enter rises wit

Minimize use of co

Minimize use of cMinimize use of wMinimize use of

Su ort women'

Lend lines linked to al

Em lo ees who s eak the

We have a formal writA written olic is undWe have an informal oli

We have a forA written olic is undWe have an informal olic rNo we do no

No we do

We have a

We have an informal oliA written olic is und

No we do

MeanFood securi

HousinPartici ator We

Per Ca ita hous

Own Prox PPer Ca ita ho

Take measures to contribute to the elTake measures to contribut

Raise awareness of clientTrain/educate the client re arS ecific clauses in the loan contract are inclu

Avoid credit for enter risPromote trans arePromote reasonable workin conditions foSupport local commu

Grameen Pro ress OuUSAID Povert AssPer Ca ita houPer Ca ita ho

We measure the poverty level of all clients at a certa

We measure the overtl levelWe measure the overt level of clien

We do not measure the over

Other (Please

Other (Please s

Other (Please

Other (Please


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Enterprises financed and employment generation Enterprises financed Start-up enterprises

Percentage of start-up enterprises: #DIV/0!

Full-time self-employed workers Full -time hired workers P

Percentage: #DIV/0! #DIV/0! #DIV/0!

School attendance of clients' daughters

Percentage: #DIV/0! #DIV/0! #DIV

School attendance of clients' sons




Did you conduct any study regarding the effectivenesson your target market of the financial/and or non-financial products and services that you provide? If yesand you want to share the results, you can write ashort summary here. (Feel free to provide web links to

related documents and/or send related documents toMIX, if you want them to be published in the MIXMarket library):

Employment (Family & Hired in credit supported small

People self-employed(including family

members) in financedenterprises

H

Estimated number(please fill each column withappropriate numbers for the reporting year):

Full-time/part-time employmentPart-time self-employed

workersEstimated number (please fill each column withappropriate numbers for the reporting year):

Was this data gathered from a sample of clients or allclients? If from a sample, please provide sample details(size, period and sampling methodology):

Children in School.This question is relevant for countries wh

Do you track whether your clients' children areattending school ?

If not, and not planning, pleaseexplain why not:

If yes, do you collect this data separately for newclients (less than 1 year with your institution) and forolder clients (more than 3 years with the MFI)? Ifseparately, please provide data for older clients below(questions f, g)

Clients'daughters who are of schoolage (primary-secondary school)

Clients' daughters whoare attending primary

school

Clients'daughters whoare attending secondary

school

Cliin

w

Number (please fill each column with appropriatenumbers for the reporting year):

Clients'sons who are of school age

(primary-secondary school)

Clients' sons who are

attending primary school

Clients' sons who are

attending secondaryschool

C

primare


Was this data gathered from a sample of clients or allclients? If from a sample, please provide sample details(size, period and sampling methodology)

Provide here data for your older clients (more than 3years with the MFI): School attendance of clients'daughters

Clients'daughters who are of schoolage (primary-secondary school)

Clients' daughters whoare attending primary

school

Clients'daughters whoare attending secondary

school

Cliin

w

Number (please fill each column with appropriate

numbers for the reporting year):

Provide here data for your older clients (more than 3years with the MFI): School attendance of clients' sons

Clients'sons who are of school age(primary-secondary school)

Clients' sons who areattending primary school

Clients' sons who areattending secondary

school

Cprimare



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FY 2009 POVERTY MEASUREMENT

20

a

b

c

d

e

f

21 National Poverty Line

a

b

c

d

22 National Poverty Line

a

b

c

d

e

Clients below poverty line at entry

Please answer the questions below under therelevant column (s) according to the povertylevel(s) for which you have information

What poverty line(s) does your institutionconsider when measuring the poverty levels ofyour entering/recently joined clients? (Check allthat apply):

What percentage of all entering/recently joinedclients are estimated to be below the poverty line,at the end of the reporting year?

Specify - in the relevant cell(s) -which poverty tool(

What percentage of all entering/recently joinedclients are estimated to be in the bottom 50% ofthe poverty line), at the end of the reporting year?


Was this data gathered from a sample or allclients? If from a sample, provide details on thesize, period and sampling methodology:

Clients below poverty line after 3 or 5 years (Compl

1 US$ per day international povertyline

2 US$ per day internationalpoverty line

Of your clients who have been with yourinstitution for 3 years, what percentage isestimated to be below the poverty line?

Of your clients who have been with yourinstitution for 5 years, what percentage isestimated to be below the poverty line?


Provide details on the size, period and samplingmethodology:

Clients out of poverty after 3 or 5 years (Complete 1 US$ per day international povertyline

2 US$ per day internationalpoverty line

Of your clients who have been with your

institution for 3 years, what percentage isestimated to be above the poverty line now?(Provide data in the cells related to the povertyline(s) that you used):

What percentage of these clients (now above thepoverty line) were below the poverty line whenthey joined the institution?

Of your clients who have been with yourinstitution for 5 years, what percentage isestimated to be above the poverty line? (Providedata in the cells related to the poverty line(s) that

What percentage of these clients (now above thepoverty line) were below the poverty line whenthey joined the institution?

Provide details on the size, period and sampling

methodology:

National over US $1.00 a da inter US $2.00 a da inte


11/12

38762513.xls

GLOSSARY

ndicator Definition

Those working more than 6 hours a day, for more than 8 months a year.

Active borrowers The number of individuals who currently have an outstanding loan balance with the MFI or are primarily responsiblrepaying any portion of the Gross Loan Portfolio. Individuals who have multiple loans with an MFI should be counted single borrower.

ducation 1. Financial literacy: training which addresses topics related to financial planning, savings, investments, borrowibudgets, interest rates, etc..2. Basic health/nutrition education: teaching sessions on topics such as breastfeedchild health and nutrition, family planning, reproductive health, etc. 3. Children and youth education: educatprograms and strategies geared toward children and youth 4. Occupational safety and health in the workspeducation: training that aims to inform local entrepreneurs about how to ensure safer and healthy working conditions.

Credit 1.Microcredit loans for microenterprises: loans whose purpose is to finance a microenterprise (5 or fewer employ2.SME loans: loans whose purpose is to finance small or medium enterprises (greater than 5 employees and less 250) 3.Loans for agriculture: loans destined to activities linked to agriculture/livestock. 4.Line of credit: a established loan authorization with a specified borrowing limit extended by a lending institution to an individual or busibased on creditworthiness. 5. Consumer loans for education: loans destined to finance the education of any housemember 6.Housing loans: loans that finance home purchase or improvements 7. Consumer loans for immedhousehold needs: loans mainly destined to finance consumption and other household needs.

Clients drop-out rate Percentage of clients who had no transaction on credit with the MFI for over 12 months, calculated as: (Total numbeborrowers at the beginning of the reporting period+Number of new borrowers during the period-Total number of borrowat the end of the reporting period)/Total number of borrowers at the beginning of the reporting period. This formula dnot differentiate between new and rejoining clients.

nterprise services 1. Enterprise skills development: includes vocational training, technical and management skills courses to devsmall-scale enterprises 2.Business development services: includes information, training, business advice, consuand marketing services, assistance with information and communications technology (ICT), technical assistance, business links.

nterprises 1.Microenterprises: enterprise having 5 or fewer employees. 2.Small enterprises: enterprise greater than 5 emploand less than 50. 3.Medium enterprises: enterprises greater than 50 employees and less than 250. 4.Laenterprises: enterprises greater than 250 employees. These numbers include both self-employed (client and famembers) and non-family hired employees.

inancial services 1.Debit card: a bankcard used to make an electronic withdrawal from funds on deposit in a bank, as in purchasing go

or obtaining cash advances/Credit card: a bankcard that may be used repeatedly to borrow money or buy products services on credit. 2. Cell phones cards: a card used to directly lend out money through mobile phones and that alclients to store cash and repay their loans. 3.Savings facilitation services: the MFI enables its clients to have savinother institutions. 4.Money transfer services: Money sent by expatriate migrant worker to their home country or opayments in cash, check or electronic transfer, also made domestically. 5.Payment by check: bill of exchange, or draa bank drawn against deposited funds to pay a specified sum of money.

ull-time workers

Health services 1.Basic medical services: basic nursing, basic medical support and vaccination services. 2.Special medical servfor women and children: services such as PAP smears to breast exams, STD screenings, pre- and post- natal carepregnant women.

nsurance 1.Credit life insurance: insurance issued to cover the life of a borrower for an outstanding loan. If the debtor dies prirepayment of the debt, the policy will pay off the balance of the amount outstanding. 2.Life insurance: insurance guarantees a specific sum of money to a designated beneficiary upon the death of the insured or to the insured if he or

lives beyond a certain age. 3.House insurance: property insurance that covers losses occurring to one's homecontents, loss of its use, or loss of other personal possessions of the homeowner. 4.Agriculture insurance: coveragcrops in the event of loss or damage and coverage for domestic animals loss raised for home use or for profit, especiala farm; 5. Health insurance: insurance against loss or bodily injury; 6. Workplace insurance: insurance that comedical costs and lost wages for employees injured at work

egal form 1.Bank: a licensed financial intermediary regulated by a state banking supervisory agency. It may provide any of a numof financial services, including: deposit taking, lending, payment services, and money transfers. 2.Non-bank finaninstitution: an institution that provides similar services to those of a Bank, but is licensed under a separate category. separate license may be due to lower capital requirements, to limitations on financial service offerings, or to superviunder a different state agency. In some countries this corresponds to a special category created for microfinainstitutions. 3.NGO: an organization registered as a non profit for tax purposes or some other legal charter. Its finaservices are usually more restricted, usually not including deposit taking. These institutions are typically not regulated banking supervisory agency.4.Cooperative/credit union: a non profit, member-based financial intermediary. It may a range of financial services, including lending and deposit taking, for the benefit of its members. While not regulated

state banking supervisory agency, it may come under the supervision of regional or national cooperative council.

ending methodology 1.Individual loans: A loan made to an individual borrower who is solely responsible for its repayment. 2.Solidagroup: A loan group made up of approximately 310 people drawn from the same community and where group memcollectively guarantee loan repayment 3.Village banking: As in solidarity groups, loan repayment is guaranteedcollective membership, but loan groups are bigger, made up of approximately 2030 people (typically women).

Mission statement A formal, written expression of an organizations mission that defines why it exists, and what it does for whom. It can alinclude vision statement and values statement - if relevant.


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Residential areas on the outskirts of a city or town with strong presence of non-farm economy.

Poverty assessment tools

Poverty levels 1.Very poor: Clients living below an absolute extreme poverty line. Common extreme poverty lines include (1) persothe bottom 50% of those living below the poverty line established by the national government, or (2) persons living onthan US $1 per day (technically $1.08 per day per capita at 1993 Purchasing Power Parity - PPP) or on less than of US $per day at 2005 PPP. 2.Poor: Clients living below a poverty line. Common poverty lines include (1) persons living belowpoverty line established by the national government, or (2) persons living on less than US $2 per day in daily per-cexpenditures at 1993 PPP. 3.Low income: Clients above the poverty line but below the national average income. Forupdate about poverty lines and PPP visit: http://www.povertytools.org/

Regular service point Services which include MFIs branches, mobile banking agencies or delivery services operating at least one day a weekarea is considered to have no other MFI or bank branches when a services point is located at least 50 km (or more thhours) away.

Rural areas Settled places outside towns and cities, such as villages, hamlets, where most livelihoods are farm based.Farm inclboth crop and noncrop agriculture, livestock. fishing, etc.

avings 1.Checking accounts: an account which allows the holder to write checks against deposited funds 2.Voluntary savideposits are voluntary 3.Compulsory savings (cash collateral): savings are mandatory (and used as cash collateraFixed term deposits: deposit that cannot be withdrawn before a date specified at the time of deposit 5.Sppurpose savings accounts: a deposit account for private individuals to accrue money for a special purpose and recinterest on the deposited amount.

emi-urban areas

taff Personel who carry out tasks related to microfinance activities. This should not include technical staff (e.g. I.T. department,accountants, administrative) and support staff (e.g. drivers, cleaners).

taff turnover rate Percentage of staff having left the MFI during the last reporting year, as calculated by: Number of departing full andtime employees over reporting period / Average number of full and part time employees over reporting period.

Urban areas Areas constituting a city or town with higher density of population in comparison to the surrounding areas, wheremajority of people do not dependent upon agriculture as main economic activity.

Voluntary savers The total number of individuals who currently have funds on deposit with an MFI on a voluntary basis.i.e. they arerequired to maintain the deposit account to access a loan. This number applies only to deposits that are held by the not to those deposits held in other institutions by the MFIs clients.

Women empowerment The MFI identifies constraints that women face in the society and seeks to enable women - through the provisiofinancial and non financial services tailored to women's needs - to challenge and change gender inequalities inhousehold, market and community. The MFI carefully supervises women business activity to ensure that the woman ceffectively exercises the control over her loan and business activity and does not hand it over to their husband or anomale in the household. Some of the non financial services aiming at empowering women are: 1.Business trainingwomen: specific training to promote women's entrepreneurship. Besides basic bookkeeping and business managemskills it may include guidance in balancing family and work responsibilities, group dynamics and leadership (in the cagroup loans). 2.Women leadership training: training aiming at increasing women's confidence to work productienhance their sense of self-empowerment related to control over their freedom of movement and decision-ma3.Training on rights and responsibilities as leaders in participative models: develops the leadership cap

among group members to promote the rotation of leadership roles 4.Women's rights education/Gender is(training for men and women): provides a forum for dialogue on social and political issues, such as, womens rightsissues concerning gender roles in the community and awareness to eliminate any form of violence and discriminaagainst women. 5. Counseling for women victims of violence: gives women victims of violence psychologicasupport and free legal advice.

1.Progress Out of Poverty Index (PPI) CGAP-FORD, Grameen: the PPI is a composite of 10 easy-to-collect, nfinancial indicators such as family size, the number of children (attending school), type of housing and assets, linked poverty likelihood score, according to different poverty lines. Each PPI is specific to its particular country characterisas each is based on a recent national household survey that covers expenditure or income. 2.IRIS/USAID PoveAssessment Tool (PAT): also based on recent national household surveys that cover expenditure or income, PAT country-specific questionnaire of 15-18 indicators that are benchmarked to different poverty lines. (Initially designedreport on the % of clients who are 'very poor' according to the legislative definition of 'extreme poverty' for the countr

question). 3.Per capita household expenditure: sum of total household expenditure (for consumption or nconsumption) divided by the number of members living in the household 4.Per capita household income: aggregincome from all household income from work, capital and government transfers, cash and in-kind - divided by the numof members living in the household). 5.Housing index: the Housing Index uses the structure of the house sometimes the compound, the material used for building the house, the number of rooms, the presence of running wand bathroom facilities to differentiate between economic levels of households and identify those who are po6.Participatory wealth ranking (PWR): PWR relies on criteria that communities themselves define to condassessments of who within their communities they deem to be poor and who relatively better off. PWR lets communithemselves define what constitutes poverty and relative well being and lets communities then classify househaccording to relative levels of poverty. 7.Means Test: the means test uses a very simplified household surveydetermine poverty levels of households. A small number of relatively easily verifiable and generally asset baindicators are used, including land ownership, livestock ownership, ownership of radio, television, etc. Other indicathat may be used are educational levels or social indicators . A composite score is then derived to rank househo8.Food security index: it is a quantitative assessment of the availability, stability and access to food supplies in ecountry, as well as the nutritional outcomes that result from food insecurity. 9.Own Proxy Poverty Index: any opoverty indicator used by your institution.

2009 sp report english 1

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