ASA-Annual Report
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ASA started its activities in the year 1978 and from the very beginning the motto of the organization is to develop standard of living of poor people of the country. In 1991, its leadership decided to focus on economic empowerment agenda and chose microcredit as the core activity of the organization. Now it is proven that ASA has been operating the most cost-effective program and the recovery rate is the highest among all other organizations operating the same type of program. But this remarkable success of ASA is not achieved in a day. It has become possible because of some cost reducing and income increasing factors learned by ASA by practicing microfinance through its branch offices all over the country in the last couple of years. Due to these factors, the members are satisfied as they can fulfil their financial need and at the same time ASA can operate a very fruitful microfinance program. The secret of this cost reducing and income increasing factors are mentioned below. |
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Cost Reducing factors: 1. The staff members are selected within the shortest possible time and they are given a short duration on-the-job training. 2. The branch office is furnished with minimal facilities and simple furniture for collective use. 3. Branch expenditure is standardized. ASA has set a cost ceiling for all kinds of expenditure. 4. Increase in the number of borrowers, portfolio per Credit Officer (CO) and a high fund revolving rate minimize total fund requirements. 5. Simple and easy system of office work and effective supervision, use of simplified and fewer account forms without provision for an accountant. 6. There is no office assistant or security guard in the branch office. 7. Decentralized operation and management following written manual. 8. Reduced administrative overhead costs following decentralized decision making power and delegated fund management. 9. No expenditure for technical assistance. 10. Provision for one staff at the area level (AM) and one DM at the divisional level without separate offices or secretarial staff. 11. Branch office is the centre of all activities at the field level. |
Income Increasing Factors: 1. No group liability hence non-defulters are getting loan 2. Quick expansion into new areas, fast group formation and high density of groups in working areas. 3. Fast provision of the first loans to new members. 4. Strict control on weekly installments and promotion of savings mobilization. 5. Mandatory savings allow predictable funds to be efficiently lent out. 6. Quick information on default and serious default management. 7. Provision for insurance of borrowers. 8. Flexibility in changing conditions to increase turnover and improve income.
As a result of these cost reducing and income increasing factors of ASA, it enjoys the sustainability status within the shortest possible time, i.e., within one year of the beginning of a branch office operation. These are the specialties of the ASA microfinance model.
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