a) What is Overlapping and why

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.

b) Member's loss due to 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.

c) Organization Loss due to overlapping

  • 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.

d) General stapes for resolve and protect the overlapping problem

  • 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.