results of a face-to-face interview-survey conducted in 9 province of 930 borrowers survey conducted...
TRANSCRIPT
RHLF IMPACT ASSESSMENT:
2010Results of a face-to-face interview-survey
conducted in 9 province of
930 borrowers
Survey conducted by:
Progressus Research & Development
CONTENT Methodology
Demographic profile of Borrowers Loan Description Loan Outcome Loan Impact What impacts on Loan Outcome?
The Borrowing Experience Consumer Education
Challenges in Research
Conclusion
METHODOLOGY: SAMPLE Combined Loan book -Total RHLF loan book per
Province Verified “suburbs/villages” (Google Earth) 3 random points selected per Province Cluster points -> All towns/ cities/ villages
closest to this cluster point were marked. Borrowers listed within these towns/ cities/ villages from all Lenders were included in the sample frame for the Province.
Cluster expanded where necessary to reach target sample size.
Sample frame -> randomised. A final sample list was prepared of borrowers
who are traceable.
METHODOLOGY: DATA COLLECTION
Training of Interviewers, and Supervision of fieldworkers essential
Sampled Borrowers were traced by employing the following means: Telephone appointments made for an interview. Home addresses were traced and Borrowers
were interviewed immediately where possible, or an appointment made for later
Work addresses were followed to find respondents at work – interview scheduled, as well as appointment made to visit the home after work to obtain the GPS reference point and picture.
Methods used interchangeably (up to 3 visits)
METHODOLOGY: SAMPLE RESULT
Lenders Sampled Borrowers
Weighted Sample according to
number of Loan
Sample Accuracy: Sample is accurate in 95% of cases within a
range as specified
Bayport 98 44 467 10.00%
Elite 84 1 145 10.30%
Indlu 92 1 390 9.88%
Izwe 99 30 724 9.83%
Kuyasa 90 1 743 10.00%
Lendcor 98 25 951 9.88%
Mafori 95 5 593 9.97%
Norufin 92 1 290 9.85%
RPH 90 1 408 10.00%
Vecto 92 3 656 10.09%
RHLF TOTAL 930 117 367 3.20%
DEMOGRAPHIC DESCRIPTION OF BORROWERS
WHO ARE THE BORROWERS? SLIDE 1 OF 3:
Gender: 50.5% Male Average age: 48 years old High employment rate
Private sector (two thirds) Government (third)
Income Individual income: R6,821 Household Income: R9,111
Household Size: 5 people 59% Nuclear families; 23% Single parent families; 12.8% Singles/ Singles Sharing
2% Disabled
WHO ARE THE BORROWERS? SLIDE 2 OF 3:
Savings 47% of Borrowers save actively
84% Fixed monthly payment; 12% When they can
R625 p/m 57% use Bank for savings; 24% Stokvel
WHO ARE THE BORROWERS? SLIDE 3 OF 3:
Community Leader
Employer
Builder Material Supplier
Unregistered Money lender
Family/ Friends
Micro lender
Store credit
The Bank
RHLF Lender
0% 20% 40% 60% 80% 100%
1%
2%
2%
9%
13%
15%
17%
29%
100%
Lending History
LOAN DESCRIPTION
LOAN DESCRIPTION Loan Size:
R7,971 Requirements:
Mostly ID Book, Payslip, Bank Statements
LOAN OUTCOME
LOAN OUTCOME
Medical Costs
Business
Bought or Repair Vehicle
Bought Food Persihables
Bought Furniture Appliances
Family Event
Settled Debt
Education
Home improvement
0% 10% 20% 30% 40% 50%
0%
1%
4%
5%
6%
7%
13%
17%
47%
Loan Outcome
LOAN OUTCOME: IF HOME IMPROVEMENTS...
To access sewerage for TOILETS
To pay labourer, house planner
To buy LAND
To buy a Site, Stand
To access WATER
Put SECURITY gates burglar bars
To access ELECTRICITY
Put in DOORS
To PAINT my house
Fixing ROOF/CEILING
Fixing /improving FLOORS/WALLS
To BUILD
Buy building materials
0% 2% 4% 6% 8% 10% 12% 14%
0.11%0.26%0.47%0.56%
1.19%1.24%1.31%1.55%
2.90%5.78%
8.01%10.80%
12.93%
If Home Improvements (47%), what?
LOAN OUTCOME: IF BUILT (10%)
Hut, Rondavel, Shack
Built an separate Room Flat
Boundary Wall
Roof, plastering, paving
Finish building a half built house
0% 5% 10% 15% 20% 25%
3%
3%
6%
8%
9%
14%
16%
17%
24%
If Built: What did you built?
LOAN OUTCOME: IF BUILT...
Built on average 36m² At a cost of R744 per m² 12% self built, friends, family (39 days labour) 44% stock piled materials in preparation of
building 10% build in sections when they had money
available 88% started building after 1 month of getting
loan 58% used additional money (on top of loan) to
build (Mean: R17,605 Median: R7,000 from OWN
SAVINGS)
WHAT IMPACT DID THE LOAN HAVE ON BORROWERS?
LOAN IMPACT1: LIFE IS BETTERSLIDE 1 OF 7
Self reported impact:91.6% said loan made life better
LOAN IMPACT 2: SELF ESTEEM SLIDE 2 OF 7
Decrease in Concerns and worrisome thoughts
Increase in ability to sleep well at night
Increase in Respect Community shows you
Increase in Respect other people in hh show you
Sense of self / feeling good about who you are
Respect you have for yourself
0% 50% 100%
49.20%
60.40%
61.50%
78.70%
85.30%
86.20%
Positive Impact on Self Esteem
LOAN IMPACT 3: QUALITY OF LIFE SLIDE 3 OF 7
Sense of space – not overcrowded
Ability to provide a well lit home
The convenience of preparing meals/ coooking
Ability to warm your house
22% 24% 26% 28% 30%
25.30%
27.00%
27.90%
28.50%
Positive increase in Quality of Life
LOAN IMPACT 4: SECURITY OF TENURESLIDE 4 OF 7
Positive impact on Security of Tenure20.6% reported INCREASE in sense of
security –
(A sense that you will NOT easily loose your home)
LOAN IMPACT 5: EDUCATIONSLIDE 5 OF 7
Number of children that attend school
Positive feedback you receive from the school/ teachers
Your children’s school marks/ performance at school
0% 10% 20% 30%
16.50%
20.10%
21.50%
Positive impact on Schooling
LOAN IMPACT 6: REPEAT LOANSSLIDE 6 OF 7
Repeat Loans:24% took more than 1 loan from Lender
Intention to take Repeat Loans: 82% intend to use Lender again
LOAN IMPACT 7: FINANCIALLY INCLUSIVE FOR LOW INCOME GROUPSSLIDE 7 OF 7
Refusals
Less than R3,500
R3,501 to R7,500
More than R7,500
0% 20% 40% 60%
6.50%
30.60%
30.10%
32.90%
3.00%
26.00%
28.30%
42.80%
Borrower Income groups
Household incomeIndividual Income
WHAT IMPACTS ON LOAN OUTCOME?
WHAT IMPACTS ON LOAN OUTCOME?
Gender Home Improvements more likely if Female (57%)
than when Male (37%) Income
Home Improvements more likely if smaller income <R3,500 (I: 69% HH: 69%) R3,500 to R7,500 (I: 39% HH:45%) >R,7,500 (I: 39% HH 39%)
Tenure: Home Improvements more likely if: OWN (47%/ 37%) Tribal Land (89%) than: RENT (11.2%)
THE BORROWING EXPERIENCE
THE BORROWING EXPERIENCE: FINDING OUT ABOUT THE LENDERSLIDE 1 OF 3
Other
Building Supplier
Co-worker /colleague
My employer
Lender's brochure /poster
Pamphlet /Newspaper
An agent from the Lender
Relative friend
0% 5% 10% 15% 20% 25% 30%
3%
7%
8%
9%
11%
12%
24%
28%
How did you find out about the Lender?
THE BORROWING EXPERIENCEREASON FOR USING THIS LENDERSLIDE 2 OF 3
Easy accessible
Building Supplier offered Lender's Loan
Reasonable Reapayment Period
Quick/ Good Turnaround time
Various Other Reasons
Lender's good Reputation
Good Interest Rate
Only Lender willing to borrow
0% 20% 40% 60%
0.9%
1.2%
6.4%
8.0%
8.6%
13.6%
19.7%
41.6%
Reason for using this Lender?
THE BORROWING EXPERIENCE:OVERALL PROCEDURESLIDE 3 OF 3
92% - Easy to obtain loan Mostly helped by Lender to apply 89% will recommend Lender
CONSUMER EDUCATION
CONSUMER EDUCATION 56% received consumer education (mostly from
Lending Institution) 86% received Loan Agreement 85% received explanation on Loan Agreement 78% had opportunity to ask questions prior to
signing it
CONSUMER EDUCATION
The Costs of the Loan
The Loan Agreement
The Repayments
The Loan Period
The Application Process
78% 80% 82% 84% 86% 88%
81.60%
83.60%
87.00%
87.20%
87.30%
% of Respondents who reported a good understanding of the follow-
ing aspects of the loan
CHALLENGES IN THE RESEARCH Inaccurate contact details for Borrowers:
Provinces being recorded incorrectly on the address lists provided by Lenders
Contact address not where investment was made Contact address not where borrower lives most of the
time Borrower suspicion about the nature of the
interview Family unaware of borrower’s loan – borrower
wants to keep it a secret Time and money spent on home visits, while loan
was not used for housing More support needed from Lenders – borrowers
phoning the Lender and not get confirmation that the research is legitimate
CONCLUSIONS
Impact Measurement challenging Borrowing Experience positive HOUSING Loan Outcome can be improved Gender, Income, Tenure impacts on Loan
Outcome Loan Impact:
Overall made life better Self worth Quality of Life Education Security of Tenure Impact on poor (<R3,500) Repeat Business
REGULAR PORTFOLIO IMPACT REPORTING (M MAILA)
36
DEVELOPMENTAL IMPACT
Development impact statistics compiled from Mar-10
monthly Housing Impact Monitoring Reports Number of new loans 33112 Loan usage New House 3% Extension 8% Improvement 71% Services 2% 84% Others (mainly education) 16% 100% Repeat loan borrowers 29%
Borrowers using loan together with government subsidy 32% Gender of borrower Male 41% Female 59% Borrower's employment Private sector 30% Public sector 68% Self-employed, informal 2% Borrower's income less than R1 500 45% R1 500-R2 500 9% R2 500-R3 500 8%R3 500 - R6 000 17% R6 001-R9 500 21%