Targeting Low-Income Households

MBK identifies target borrowers using the Cashpor Modified Housing index.The Cashpor Housing Index is a poverty targeting tool developed by Professor David Gibbons, founder of CASHPOR India. It is an effective tool for poverty measurement. It is low-cost and quick, since different features of a house can be visually appraised with a fair level of accuracy without the need to interview the borrowers.

Through visual inspection, the account officers allocate points for each main component of the house, namely its size, structural condition, building materials used for walls, floor, type of toilet, electricity and water as shown below. Borrowers joining the programme should have a housing index of 12 or below. Borrowers who score 13 to 14 in the index are referred to the Branch Manager. Applicants whose houses score above the cut-off point of 14 are not eligible.

Modified CASHPOR Housing index