Ujjivan - Providing Financial Services to the Poor

Wonder of the North East
Steady growth of urban poor opting for Ujjivan’s services in Assam and Meghalaya

North East India. The very phrase conjures up, among many, imagery of bleak isolation, a land of backward people and a fear of the unknown. Despite the rapid strides of progress and prosperity in this economically neglected part of the country, the myth of North East India still lingers in the minds of the common Indian citizens.

The isolation of the North Eastern states began during the British times when traditional trade with neighbouring countries of Bhutan, China and Burma was cut off. The disadvantageous landlocked and tough geography of the region added to its economic isolation. Gradually, however, policy changes and the impacts of globalisation have helped the region begin integrating with mainstream India.

Ujjivan started offering its services in Assam and Meghalaya nearly a year ago. It has been challenging to manage the socio-cultural differences and unique economic disparities among the people in the region. This impacted not only our approach to relationships with potential borrowers but also with our local staff. Today, thanks to the dedication and hard work of our field staff, Ujjivan is now a trusted MFI among the urban poor in the region.

We now serve over 15000 customers in 10 branches spread across Assam and Meghalaya. In the region, Ujjivan has the unique distinction of being:
• The 1st MFI to provide flexibility in repayment frequency
• The 1st MFI to provide a range of products such as Top up loan, Emergency loan, Education loan etc.

Our customer contact programs such as mini centre leader meetings and centre leader meetings have also gone a long way in establishing trust among the poor in the region.

Abdul Kalam Azad, a 27-year old branch manager (CRM) at Kalapahar branch says that the professionalism and technological facilities are major factors, which make Ujjivan a great place to work. He feels that despite being present for just under a year, Ujjivan is trusted by customers more due to its staff behaviour and a genuine socially committed approach to the uplift of urban poor. Having had to undergo lots of pain due to financial difficulties during his education, Abdul would like to help in the education of the children of the poor in his home state, so that they may have a better and prosperous future. He is willing to put in more hard work and take up additional responsibilities at Ujjivan to make this happen.

Customer’s children performing at Centre Leader Meeting in Assam

Centre Leader Meeting functions in Assam

Centre Leader Meeting functions in Assam

Mantu Kalita, another 25-year old cashier, who has worked with the organisation in Meghalaya and Assam, says that the work life balance provided by Ujjivan gives a sense of self satisfaction at the end of the day. Having worked with another MFI earlier, he feels Ujjivan’s processes and organisational culture is favourable to meaningful productive work.

Customer Impact
The region’s first customer Centre Leader meetings were held in Assam at Dispur and Kalapahar branches. Nearly 300 centre leaders attended the functions, which were graced by senior executives from banks and Government.

At the functions, Chief Guests included Mr. K B Rani, Deputy Director, CAPART (Ministry of Rural Development, Govt. of India) and Mr. K. M. Deka (DGM-SIDBI), who said, “Ujjivan is providing support to those communities where banks have not yet able to reach. Only when all customers take up the challenge to become self sufficient, will it fulfil our dream.”

Customers participated enthusiastically in detailed discussions on dangers of multiple borrowings, and financial planning. Ujjivan staff, customers and their children also got together to present cultural programs, which included folk dances and songs.

The events were also covered in local news channel.

Manju Kalita

Manju Kalita, a private tutor, earns up to Rs. 3000 and her husband earns Rs. 7000 per month from his cart-based fast food business. Manju availed a business loan of Rs, 10000 from Ujjivan to expand her husband's business. She helped her husband take up permanent place on rent and set up the fast food restaurant. They are able to purchase more raw materials and sell more. She highlights the monthly repayment system as an important factor in helping the financial planning of her family. They get time to invest, earn and repay. She was also impressed by the quick handling of her Emergency Loan request, receiving it within just one day.

Manju Sarigwary

Manju Sarigwary, engaged in pig selling business, was able to sell pigs in small numbers due to lack of funds. Her husband works as a driver and their household income was Rs.4500. She has two children – a son and a daughter, both studying in 12th class. With the limited income, it was difficult for Manju to run her family. She availed of a Rs. 6000 business loan from Ujjivan to expand her pig business, enabling her to rear and sell more pigs. She has now been able to generate substantial profits and invested some of it in her children’s education and kept the remaining as savings.

She would like to grow her business further and looks forward to the continuing support from Ujjivan.