Overview
The study team identified several reasons for client dropout in the study area, including loan issues, loan borrowers who were not able to repay, loan borrowers who borrowed from others, non-regular visits by field staff, multiple loans from NGOs, high debt, fledgling staff, illness, financial damage from the pandemic, and non-repayment on their own. Other factors include accidents, lack of employment opportunities, business loss, incomplete repayments, damage to agricultural crops, disbursement outside the branch, divorce, high expenditure, drug addiction, and political influence. Clients also reported losing their pass books and completing repayments during the deployment of new staff. The study team found that these factors contribute to the financial struggles faced by clients. Furthermore, clients in different zones are facing financial crises due to a variety of factors, including agricultural damage, loan disbursement outside the branch, illness, divorce, lack of employment, accidents, drug addiction, and gambling. In some cases, clients draw loans without repaying previous ones, while others deny repayment. Field staff absences, simultaneous borrowing from multiple NGOs, and misbehavior all contribute to the crisis. Clients have fled due to financial damage, business loss, and mismanagement by staff.
