Beruflich Dokumente
Kultur Dokumente
S Gayatri Kuntal Ronika Soni Parth Patel Pratik J Shah Mayank Shrivatava Swapna K Joshi ---PRESENT
MICRO FINANCE
To most, micro finance means providing very poor families with very small loans (micro credit) to help them
engage in productive activities or grow their tiny businesses. -> Financial Gateway
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By lending to groups of women where every member of the group guaranteed the repayment of all members, these micro credit programs challenged the prevailing conventional wisdom and proved that poor people without collateral could be "credit worthy". When offered the opportunity, they would repay loans with interest, at extraordinary rates of repayment.
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Micro finance has been in practice for ages ( though informally). Legal framework for establishing the co-operative movement set up in 1904. Reserve Bank of India Act, 1934 provided for the establishment of the Agricultural Credit Department.
Nationalization of banks in 1969 Regional Rural Banks created in 1975. established as an apex agency for rural finance in 1982. Passing of Mutually Aided Co-op. Act in AP in 1995.
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sources.
70 % of the rural poor do not have a deposit account 87 % have no access to credit from formal sources. Less than 15 % of the households have any kind of insurance. Negligible numbers have access to health insurance
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FEATURES OF INDIAN MF
About 60 % of the MFIs are registered as societies.
households NABARDsbanklinkageprogramhascumulativelyreachedatota of 9.4 lakh SHGs with about 1.4 crore households.
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DO RBI IMPOSE THE TERMS & CONDITIONS FOR ACCESSING MICRO CREDIT ?
No . Banks have been given freedom to formulate their own lending norms keeping in view ground realities. They have been asked to devise appropriate loan and savings products and the related terms and conditions including size of the loan, unit cost, unit size, maturity period, grace period, margins, etc
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with focus on both savings and credit activities and where banking services are provided to the clients either directly or through SHGs There is also a Wholesale banking Model where the clients comprise NGOs and SHG Federations. This Model involves a unique package of providing both loans and capacity building support to its partners. Further, there is an Individual Banking-based Model that has its clients as individuals or joint liability groups. While programme management and client appraisal in this Model may be a challenge, it is best suited to lending to enterprises.
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SKS Microfinance
SKSfoundedin8991byVikramAkulaisIndiaslargestand
worldsfastestgrowingMFI. It is spread in 19 states with more than 2400 branches and approx 7.7 million clients. It lends money for a range of income generating activities like livestock, agriculture, basket weaving, pottery, beauty parlors, etc. SKS has a unique ultra poor program for the destitute in the society. Under this programme, the beneficiaries receive training to run an income-generating enterprise, financial education and an asset. Over an 18-month period these beneficiaries are trained to become self-sufficient and graduate into regular microfinance.
NGO. They later it turned from a non-profit organization to non-banking finance company (NBFC). From there it went on tobecomeIndiasfirstpubliclimitedMFI. On July 28, 2010, SKS Microfinance, India's biggest Microfinance Institution (MFI), made its debut on Bombay Stock Exchange, offering its shares to the general public. Mr. Vikram Akula insisted in going public because he thinks that this is the only way to raise sufficient money to meet the needs of all the people of India who are living below the poverty line.
program of NABARD. Through this program, banks financed Self Help Groups (SHGs) which had been promoted by NGOs and government agencies.
ICICI Bank drew up aggressive plans to penetrate rural areas through its SHG program. However, rather than spending time in developing rural infrastructure of its own, in 2000, ICICI Bank announced merger of Bank of Madura (BoM), which had significant presence in the rural areas of South India, especially Tamil Nadu, with a customer base of 1.2 million and 77 branches
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CHALLENGES AHEAD
Appropriate legal structures for the structured growth of MF operations Ability to access loan funds at reasonably low rates of interest. Ability to attract and retain professional and committed human resources. Design of apt MIS including user friendly software for tracking accounts and operations.
Bring out a compendium of small and micro enterprises for the MF clients.
Identify and prepare a panel of locally available trainers. Ability to train trainers.
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RELATED ISSUES
Designing financially sustainable models Aim for community participation & ownership
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IDEOLOGICAL ISSUES
Can MF ever be inclusive of the bottom two quintiles below the
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