Overlapping in Micro-credit process

In the micro-credit process, demand and the highest investment capacity of a man are decided to approve the loan proposal and its disbursement. As a result, he needs not to be a member of more than one organization. Yet some members sometimes used to be a member of more than one organization and takes a loan. This type of membership taken from more than one organization is known as the overlapping.

Overlapping means to be a member of different NGO’s at a time. Due to overlapping the mentionable losses of the member are as under:-

• Excess money in respect of investment capacity comes to hand.

• Excess money is spent in an unplanned way.

• Excess installment money is to pay up in respect of income-generating investment and as a result the capital decreases.

• Problem is created to deposit regular savings.

• Problem is faced to deposit scheduled installment.

• Remain absent in the meeting.

• Loses confidence in microcredit.

• Involves in different problems.

• Expected income is not received from the business.

• Cannot work as per ward.

• Personal and family prestige is hampered by other members.

• The loan limit is reduced in the next phase.

• Membership is lost in the long run.

• Image of micro-credit is lost.

• Regular member becomes an irregular one.

• Supervision of loan is hampered.

• Irregularity is created in savings and installment payment.

• There is a possibility to spoil a regular member due to an overlapping member.

• Discipline is hampered in the somity and the other members are deprived of the facilities.

• Loan disbursement and collection system of the organization is hampered.

• Loan is not repaid in time.

• Confidence between the two organizations is destroyed.

• The organization suffers loss.

• Sustainability of the organization faces impediments.

• At first to meet the overlapped members.

• Giving motivation for various subjects.

• Describing the bad sides to accept membership of different organizations and to receive excess money beyond the capacity of proper investment.

• Meeting other members of the incumbent’s family and to make them understand the bad side of overlapping.

• Helping the member to take the right decision.

• Due to irregularity, the loss of confidence of other NGO’s is to be detailed for easy understanding.

• Arrangement for clearing the installments regularly.

• Care should be taken so that the member does not lose confidence in micro-credit.

• Describing the benefits of taking a loan from one organization.

• Meeting him in his residence frequently and to discuss.

• Various facilities of micro-credit are to be focused on the discussion.

• Creating a favorable environment for helping the overlapped member to take the right decision through other members.