40 Himanshu Bhatnagar - Micro Finance- Financial Product for Bottom of Pyramid Market

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    CONTEMPORARY ISSUE ON SEMINAR

    Micro Finance- Financial Product for

    Bottom of Pyramid Maret

    Session: 200911

    Pre!ented at

    Submitted By: - Submitted To:-Himanshu R Bhatnagar Mr. Rajat MendirattaMBA II Sem.

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    Ackn wl dg m nt

    The beatitude, bliss & euhoria that a!!omany su!!ess"ul !omletion any tas#$ould not be !omleted $ithout the e%ression o" are!iation o" simle irtuesto the eole $ho made it ossible.

    So, I ta#e my immense leasure in e%ressing a $hole hearted than#s to all the"a!ulty members $ho guided me all the $ay ma#ing this roje!t su!!ess"ul.

    It is my riilege to e%ress a dee sense o" gratitude and than#s to Mr. RAJAT

    MENDRATTA"or roiding us arious in"ormation dire!tly related to roje!t.

    I e%tend my gratitude and than#"ulness to Ae% Institute o" Management &S!ien!e.

    'ate:()-*+-(* Submitted By:la!e: aiur Himanshu R Bhatnagar

    ( 2 )

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    !r "#c

    The underlying aim o" the seminar on !ontemorary issue as an integral art o"MBA rogram is to roide the students $ith ra!ti!al ase!ts o" the organiation

    / $or#ing enironment.Su!h tye o" resentation hels a student to isualie and realie about the!ongruen!ies bet$een the theoreti!al learning in the remises o" !ollege anda!tual "ollo$ed by the organiation. It gies the #no$ledge o" ali!ation ase!to" the theories learnt in the !lassroom.

    The seminar roje!t inMicro Finance- Financial Product forBottom of Pyramid Maret is a !omlete e%erien!e in itsel", $hi!hroide me $ith the understanding. This has be!ome as insirable o" my#no$ledge o" management being learned in MBA rogram.

    ( 3 )

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    M I C R O F I N A N C E

    Financial Product forBottom of Pyramid Maret

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    Ta"le of Content! P#$ No$

    1. Introduction

    Elements of Microfinance

    2. History of Microfinance in India

    3. Need for Micro Financing

    Who are client of microfinance?

    Ho it hel!s the !oor !eo!le?

    "ren#t !oor too !oor to sa$e?

    When is microfinance N%& an a!!ro!riate tool

    '. &y!es of %rgani(ations and )om!osition of the *ector

    Formal sector

    *emi Formal sector

    Informal sector

    What are MFIs and *H+s?

    ,. Why do MFIs charge high interest rates to !oor !eo!le?

    -. )an Micro finance e !rofitale

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    /. Im!act of microfinance o$er !o$erty

    0. )urrent *cenario of Micro financing in India

    Indian economy and microfinance

    ecent trends in Micro finance

    +o$t. role in su!!orting Microfinance

    Microfinance and ca!ital reuirement

    4 )hallenges in Indian conte5t

    6. *tatus of microfinance in a7asthan

    4 8ac9ground

    4 )urrent situation of Micro finance : im!ortant issues

    4 ;oluntary organi(ations in a7asthan

    4 Ma7or issues

    1

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    1. Introduction

    Micro financing is the provision of financial services to poor and low

    income households without access to formal financial institutions.

    As defined by the Asian Development Bank (ADB), it is A provision of

    a broad range of financial services such as deposits, loans, payment

    services, money transfers, and insurance to poor and lowincome

    households and their microenterprises.

    !o most, microfinance means providing very poor families with very

    small loans to help them engage in productive activities or grow their

    very small businesses. "ike us, many poor people need and use

    financial services all the time. !hey save and borrow, invest in home

    repairs and improvements and meet occasional and domestic e#penses

    such as food and school fees. $owever, there are some %&& million low

    income entrepreneurs in the world and about %' have access to

    financial services. ndeed, the financial services available to the poor

    often have serious limitations in terms of cost, risk and convenience.

    As a result, over time, microfinance has come to include a broader

    range of services (credit, savings, insurance, etc.) as the industry has

    come to realie that the poor and the very poor that lack access to

    traditional formal financial institutions re*uire a variety of financial

    products.

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    as pilot pro+ects with A--/and Muhammad 0unusin the mid123&s,

    the 4nited /ationsdeclared 5&&%the nternational 0ear of Microcredit.

    Microsa$ings are deposit services that allow one to store small

    amounts of money for future use. ften without minimum balance

    re*uirements, savings accounts allow households to save in order to

    meet une#pected e#penses and plan for future investments.

    emittances are transfers of funds from people in one place to people

    in another, usually across borders to family and friends. -ompared

    with other sources of capital that can fluctuate depending on the

    political or economic climate, remittances are relatively steady source

    of funds.

    Microinsurance is a term increasingly used to refer to insurance

    characteried by low premium and low caps or low coverage limits,

    sold as part of atypical riskpooling and marketing arrangements, and

    designed to service lowincome peoples. Microinsurance is insurance

    with low premiums and low caps 6 coverage. n this definition, 7micro8

    refers to the small financial transaction that each insurance policy

    generates. !he Microinsurance 9egulations, issued in 5&&% by the

    ndian nsurance 9egulatory and Development Authority(9DA).

    ( 11 )

    http://en.wikipedia.org/wiki/Accion_Internationalhttp://en.wikipedia.org/wiki/Muhammad_Yunushttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/International_Year_of_Microcredithttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Accion_Internationalhttp://en.wikipedia.org/wiki/Muhammad_Yunushttp://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/International_Year_of_Microcredithttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authority
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    History of Microfinance in India

    n ndia, institutional credit agencies (banks) made an entry in rural

    areas initially to provide an alternative to the rural money lenders who

    provided credit support, but not without e#ploiting the rural poor.

    !here are 3 main factors that count to the bringing up of

    Microfinance as a :olicy in ndia

    1. !he first of these pivotal events was ndira ;andhi?@ in a 1%.5' increase in rural

    bank branches in ndia between 123? and 12%. !oday, ndia has over

    ?5,&&& rural branches of commercial banks and regional rural banks,

    1,&&& cooperative bank branches.

    5. !he second national policy that has had a significant impact on the

    evolution of ndia

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    ndia was the liberaliation of ndia

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    3. Need for Micro Financing

    ince independence, various governments in ndia have e#perimented

    with a large number of grant and subsidy based poverty alleviation

    programs. !hese programs were based on grant6subsidy and the credit

    linkage was through commercial banks only. As a result, these

    programs became unsustainable, perpetuated a dependant status on

    the beneficiaries and depended ultimately on the govt. employees for

    delivery. !his not only led to misuse of both credit and subsidy but

    banks never looked at it as a profitable and commercial activity as

    well.

    $ence was adopted the concept of microcredit in ndia. uccess

    stories in neighboring countries, like ;rameen Bank in Bangladesh,

    Bank 9akiat in ndonesia, -ommercial E ndustrial Bank in :hilippines

    etc, gave further boost to the concept in ndia in the 12&s. ndia thus

    adopted the similar model of e#tending credit to the poorest sector

    and took a no. of steps to promote microfinancing in the country.

    Who are the clients of microfinance?

    !he typical microfinance clients are lowincome persons that do not

    have access to formal financial institutions. Microfinance clients are

    typically selfemployed, often householdbased entrepreneurs. In

    rural areas, they are usually small farmers and others who are

    ( 14 )

    http://www.microfinancegateway.com/section/faq#Q3http://www.microfinancegateway.com/section/faq#Q3
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    engaged in small income generating activities such as food processing

    and petty trade. In uran areas, microfinance activities are more

    diverse and include shopkeepers, service providers, artisans, street

    vendors, etc. Microfinance clients are poor and vulnerable nonpoor

    who have a relatively stable source of income.

    Microfinance generally targets poor women because they have proven

    to be reliable credit risks and when they have the financial means,

    they invest that money back into their families, resulting in better

    health and education, and stronger local economies. By providing

    access to financial services loans and responsibility for repayment,

    maintaining savings accounts, providing insurance microfinance

    programs send a strong message to households and communities.

    tudies have shown that women become more assertive and

    confident, have increased mobility, are more visible in their

    communities and play stronger roles in decision making.

    For instance, micro credit might have a far more limited market scope

    than, say, a more diversified range of financial services which includes

    various types of savings products, payment and remittance services,

    and various insurance products. For e#ample, many very poor farmers

    may not really wish to borrow, but rather, would like a safer place to

    save the proceeds from their harvest as these are consumed over

    several months by the re*uirements of daily living.

    For e#ample, many very poor farmers may not really wish to borrow,

    but rather, would like a safer place to save the proceeds from their

    harvest as these are consumed over several months by the

    re*uirements of daily living.

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    Ho does microfinance hel! the !oor?

    Microfinance brings the power of credit to the grassroots by way of

    loans to the poor, without re*uirement of collateral or previous credit

    record. G#perience shows that microfinance can help the poor to

    increase income, build viable businesses, and reduce their vulnerability

    to e#ternal shocks.

    :overty is multidimensional. By providing access to financial services,

    microfinance plays an important role in the fight against the many

    aspects of poverty. For instance, income generation from a business

    helps not only the business activity e#pand but also contributes to

    household income and its attendant benefits on food security,

    childrenHs education, etc. Moreover, for women, who, in many

    conte#ts, are secluded from public space, transacting with formal

    institutions can also build confidence and empowerment.

    9ecent research has revealed the e#tent to which individuals around

    the poverty line are vulnerable to shocks such as illness of a wage

    earner, weather, theft, or other such events. !hese shocks produce a

    huge claim on the limited financial resources of the family unit, and,

    absent effective financial services, can drive a family so much deeper

    into poverty that it can take years to recover.

    "ren>t the !oor too !oor to sa$e

    !he poor already save in ways that we may not consider as

    InormalI savings investing in assets, for e#ample, that can be

    easily e#changed to cash in the future (gold +ewelry, domestic

    animals, building materials, etc.). After all, they face the same

    series of sudden demands for cash we all faceJ illness, school

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    fees, need to e#pand the dwelling, burial, weddings.

    !hese informal ways that people save are not without their

    problems. t is hard to cut off one leg of a goat that represents a

    familyHs savings mechanism when the sudden need for a small

    amount of cash arises. r, if a poor woman has loaned her

    IsavedI funds to a family member in order to keep them safe

    from theft (since the alternative would be to keep the funds

    stored under her mattress), these may not be readily available

    when the woman needs them. !he poor need savings that are

    both safe and liuid.!hey care less about the interest rates

    that they can earn on the savings, since they are not used to

    saving in financial instruments and they place such a high

    premium on having savings readily available to meet emergency

    needs and accumulate assets.

    !hese savings services must be adapted to meet the :oor

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    :assing of Mutually Aided -oop. Act in A: in 122%.

    When is microfinance an a!!ro!riate tool?

    t is hard to imagine that there would be any family in the world today

    for which some type of formal financial service couldnHt be designed

    and made useful. But the fact of the matter is that in most peopleHs

    mind, ImicrofinanceI still refers to micro credit.

    Micro credit is only useful in certain situations, and with certain types

    of clients. As we are finding out, a great number of poor, and

    especially e#tremely poor, clients e#clude themselves from micro credit

    as it is currently designed. G#tremely poor people who do not have any

    stable incomeKsuch as the very destitute and the homelessKshould

    not be microfinance clients, as they will only be pushed further into

    debt and poverty by loans that they cannot repay. As currently

    designed, micro credit re*uires sustained, regular, and often significant

    payments from poor families.

    Micro credit serves best those who have identified an economic

    opportunity and who are in a position to capitalie on that opportunity

    if they are provided with a small amount of ready cash. !hus, those

    poor who work in stable or growing economies, who have

    demonstrated an ability to undertake the proposed activities in an

    entrepreneurial manner, and who have demonstrated a commitment to

    repay their debts (instead of feeling that the credit represents some

    form of social revindication), are the best candidates for micro credit.

    !he universe of potential clients e#pands e#ponentially however, once

    we take into account the broader concept of 7microfinance8.

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    '.&y!es of %rgani(ations and )om!osition of

    the *ector

    Microfinance providers in ndia can be classified under three broad

    categoriesJ formal, semiformal, and informal.

    Formal *ector

    !he formal sector comprises of the banks such as /ABA9D, DB and

    other regional rural banks (99Bs).

    !hey primarily provide credit for assistance in agriculture and micro

    enterprise development and primarily target the poor. !heir deposits at

    around 9s. ?%&billion and of that, around 9s. 5%&billion has been given

    as advances. !hey charge an interest of 151?.%' but if we include

    the transaction costs (number of visits to banks, compulsory savings

    and costs incurred for payments to animators6staff6local leaders etc)they come out to be as high as 515'.

    *emi formal *ector

    !he ma+ority of institutional microfinance providers in ndia are semi

    formal organiations broadly referred to as MFs and ;$s. 9egistered

    under a variety of legal acts these organiations greatly differ in

    philosophy, sie, and capacity. !here are over %&& nongovernment

    organiations (/;s) registered as societies, public trusts, or non

    profit companies.

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    Informal *ector

    n addition to friends and family, moneylenders, landlords, and traders

    constitute the informal sector. Lhile estimates of their importance vary

    significantly, it is undeniable that they continue to play a significant

    role in the financial lives of the poor.

    What are MFIs and *+Hs?

    uite simply, a microfinance institution is an organiation that offersfinancial services to low income populations. Almost all of these offer

    microcredit and only take back small amounts of savings from their

    own borrowers, not from the general public. Lithin the microfinance

    industry, the term microfinance institution has come to refer to a wide

    range of organiations dedicated to providing these servicesJ /;s,

    credit unions, cooperatives, private commercial banks and nonbank

    financial institutions (some that have transformed from /;s intoregulated institutions) and parts of stateowned banks, for e#ample.

    !he image most of us have when we refer to MFs is of a 7financial

    /;8, an /; that is fully and virtually e#clusively dedicated to

    offering financial services in most cases micro credit /;s are not

    allowed to capture savings deposits from the general public. !hese

    groups of a few hundred /;s have led the development ofmicrocredit, and subse*uently microfinance, the world over.

    A great many /;s that offer microcredit, perhaps even a ma+ority, do

    many other nonfinancial development activities and would bristle at

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    the suggestion that they are essentially financial institutions. 0et, from

    an industry perspective, since they are engaged in supplying financial

    services to the poor, we call them MFs. !he same sort of situation

    e#ists with a small number of commercial banks that offer

    microfinance services. For our purposes, we refer to them as MFs,

    even though only a small portion of their assets may actually be tied

    up in financial services for the poor. n both cases, when people in the

    industry refer to MFs, they are referring only to that part of the

    institution that offers microfinance.

    !here are other institutions, however, that consider themselves to be

    in the business of microfinance and that will certainly play a role in a

    reshaped and deepened financial sector. !hese are communitybased

    financial intermediaries. ome are membership based such as credit

    unions and cooperative housing societies. thers are owned and

    managed by local entrepreneurs or municipalities. !hese institutions

    tend to have a broader client base than the financial /;s and already

    consider them to be part of the formal financial sector. t varies fromcountry to country, but many poor people do have some access to

    these types of institutions, although they tend not to reach down

    market as far as the financial /;s.

    *E=F HE= +%@* (*H+A is group of rural poor who have

    volunteered to organie themselves into a group for eradication of

    poverty of the members. !hey agree to save regularly and convert

    their savings into a -ommon Fund known as the ;roup corpus. !he

    members of the group agree to use this common fund and such other

    funds that they may receive as a group through a common

    management. !he group formation will keep in view the following

    broad guidelinesJ

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    ;enerally a selfhelp group may consist of 1& to 5& persons.

    $owever, in difficult areas like deserts, hills and areas with scattered

    and sparse population and in case of minor irrigation and disabled

    persons, this number may be from %5&. ;enerally all members of the

    group should belong to families below the poverty line. $owever, if

    necessary, a ma#imum of 5&' and in e#ceptional cases , where

    essentially re*uired, up to a ma#imum of ?&' of the members in a

    group may be taken from families marginally above the poverty line

    living contiguously with B:" families and if they are acceptable to the

    B:" members of the group. !his will help the families of occupational

    groups like agricultural laborers, marginal farmers and artisans

    marginally above the poverty line, or who may have been e#cluded

    from the B:" list to become members of the elf $elp ;roup.

    $owever, the A:" members will not be eligible for the subsidy under

    the scheme. !he group shall not consist of more than one member

    from the same family. A person should not be a member of more than

    one group. !he B:" families must actively participate in the

    management and decision making, which should not ordinarily beentirely in the hands of A:" families. Further, A:" members of the elf

    $elp ;roup shall not become office bearers (;roup "eader, Assistant

    ;roup "eader or !reasurer) of the ;roup.

    !he group should devise a code of conduct (;roup management

    norms) to bind itself. !his should be in the form of regular meetings

    (weekly or fortnightly), functioning in a democratic manner, allowing

    free e#change of views, participation by the members in the decision

    making process.

    !he group should be able to draw up an agenda for each meeting and

    take up discussions as per the agenda.

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    !he members should build their corpus through regular savings. !he

    group should be able to collect the minimum voluntary saving amount

    from all the members regularly in the group meetings. !he savings so

    collected will be the group corpus fund.

    !he group corpus fund should be used to advance loans to the

    members. !he group should develop financial management norms

    covering the loan sanction procedure, repayment schedule and interest

    rates.

    !he members in the group meetings should take all the loaning

    decisions through a participatory decision making process.

    !he group should maintain simple basic records such as Minutes book,

    Attendance register, "oan ledger, ;eneral ledger, -ash book, Bank

    passbook and individual passbooks. !he sample :erforma for

    maintenance of above records by the group is in the Anne#ure for

    guidance. !hese could be used with necessary changes6 modifications

    wherever re*uired.

    %&' of the groups formed in each block should be e#clusively for the

    women. n the case of disabled persons, the groups formed should

    ideally be disabilityspecific wherever possible, however, in case

    sufficient number of people for formation of disabilityspecific groups

    are not available, a group may comprise of persons with diverse

    disabilities or a group may comprise of both disabled and nondisabled

    persons below the poverty line.

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    ,. Why do MFIs charge such high interest rates

    to !oor !eo!le?

    :roviding financial services to poor people is *uite e#pensive,

    especially in relation to the sie of the transactions involved. !his is

    one of the most important reasons why banks donHt make small loans.

    A N1&& dollar loan, for e#ample, re*uires the same personnel and

    resources as a N5,&&& one thus increasing per unit transaction costs.

    "oan officers must visit the clientHs home or place of work, evaluate

    creditworthiness on the basis of interviews with the clientHs family and

    references, and in many cases, follow through with visits to reinforce

    the repayment culture. t can easily cost 4N5% to make a micro loan.

    Lhile that might not seem unreasonable in absolute terms, it might

    represent 5%' of the value of the loan amount, and force the

    institution to charge a 7high8 rate of interest to cover its cost of loan

    administration.

    Gvidence shows that clients willingly pay the higher interest rates

    necessary to assure long term access to credit. !hey recognie that

    their alternativesKeven higher interest rates in the informal finance

    sector (moneylenders, etc.) or simply no access to creditKare much

    less attractive for them. nterest rates in the informal sector can be as

    high as 5& percent per day among some urban market vendors.

    Moreover, the interest rate is only a small part of their overall

    transaction cost of credit, and if microfinance institutions offer credit

    on a more accessible basis, substantial costs in terms of time, travel,

    paperwork, etc. can be reduced, thus benefiting the poor.

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    -. )an microfinance e !rofitale?

    0es it can. Data from the Micro Banking Bulletin reports that =? of the

    worldHs top MFs had an average rate of return, after ad+usting for

    inflation and after taking out subsidies programs might have received,

    of about 5.%' of total assets. !his compares favorably with returns in

    the commercial banking sector and gives credence to the hope of

    many that microfinance can be sufficiently attractive to mainstream

    into the retail banking sector. Many feel that once microfinance

    becomes mainstreamed, massive growth in the numbers of clients can

    be achieved.

    thers worry that an e#cessive concern about profit in microfinance

    will lead MFs upmarket, to serve better off clients who can absorb

    larger loan amounts. !his is the 7crowding out8 effect. !his may

    happen after all, there are a great number of very poor, poor, and

    vulnerable nonpoor who are not reached by the banking sector.

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    t is interesting to note that while the programs that reach out to the

    poorest clients perform less well as a group than those who reach out

    to a somewhat betteroff client segment, their performance is

    improving rapidly and at the same pace as the programs serving a

    broadbased client group did some years ago. More and more MF

    managers have come to understand that sustainability is a precursor

    to reaching e#ponentially greater numbers of clients. ;iven this,

    managers of leading MFs are seeking ways to dramatically increase

    operational efficiency. n short, we have every reason to e#pect that

    programs that reach out to the very poorest micro clients can be

    sustainable once they have matured, and if they commit to that path.

    !he evidence supports this position.

    /. Im!act of microfinance o$er !o$erty

    !here is increasing emphasis on the significance of the wider impacts

    of microfinance O those beyond the immediate financial and social

    benefits for the individual. 0et, the wider impacts of microfinance are

    notoriously difficult to identify or assess. ften, MFs< confident claims

    to be having a wider impact and to be able to assess these impacts are

    based on weak, circumstantial evidence. $ere we consider ways in

    which building evidence of wider impacts may be approached, which

    reflects processes of microfinance more faithfully, including the

    intended and unintended conse*uences of microfinance operations.

    Lider impacts may occur in the following waysJ

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    through the laour mar9etB poor people taken on by e#panding

    microfinance borrowers may as a conse*uence be taken upward

    across the poverty line

    through the ca!ital mar9etBthe intervention of a microfinanceinstitution may make e#isting lending institutions in the market,

    such as private moneylenders, lower their interest rates to

    compete, with beneficial effects on borrowers from institutions

    other than the one being studied

    through the mar9ets for goods consumed y !oor !eo!leB if

    microfinance induces an increase in supply, and hence a

    cheapening in the price, of goods consumed by poor people,households other than those of borrowers will benefit

    through !roduction lin9agesB an e#pansion of livelihoods

    (agricultural or otherwise) induced by microfinance will support the

    formation of rural industries and services, and help to bring about

    income changes among nonborrower households

    6. )urrent *cenario of Micro financing in India

    Indian Economy and Micro Microfinance

    $ome to about 1.2 billion people as of 5&&, ndia constitutes

    appro#imately one si#th of the world

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    ?&& million people or about =& million households are living below the

    poverty line. t is further estimated that of these households, only

    about 5& percent have access to credit from the formal sector.

    Additionally, the segment of the rural population above the poverty line

    but not rich enough to be of interest to the formal financial institutions

    also does not have good access to the formal financial intermediary

    services, including savings services.

    A group of microfinance practitioners estimated the annualied credit

    usage of all poor families (rural and urban) at over 9s %,&&& crores,

    of which some & percent is met by informal sources. !his figure has

    been e#trapolated using the numbers of rural and urban poor

    households and their average annual credit usage (9s =&&& and 9s

    2&&& pa respectively) assessed through various micro studies.

    Gstimated that ?%& million people live Below :overty "ine

    !his translates to appro#imately 3% million households.

    Annual credit demand by the poor in the country is estimated to

    be about 9s. =&,&&& crores.

    -umulative disbursements under all microfinance programs is

    only about 9s. %&&& crores.(Mar. &)

    !otal outstanding of all microfinance initiatives in ndia estimated

    to be 9s. 1=&& crores. (March &)

    nly about % ' of rural poor have access to microfinance.

    !hough a cumulative of about 5& million families have accessed

    microfinance to the e#tent of 9s. %&&& crores, the total

    outstanding is estimated to be only about 9s. 1=&& crores. !he

    ( 28 )

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    active borrowers are estimated to have a per capita outstanding

    of only 9s. 5%&&.

    Lith 3% million poor households potentially re*uiring financial services,

    the microfinance market in ndia is among the largest in the world.

    Gstimates of household credit demand vary from a minimum of 9s.

    5,&&& to 9s. =,&&& in rural areas and 9s. 2,&&& in urban settings.

    ;iven that & percent of poor households are located in rural areas,

    total credit demand ranges between 9s. 5%% billion and 9s. %&& billion.

    $owever, only 9s.1 billion of this amount has been generated so far.

    !he reason for this is that ma+or portion for rural crediting has been

    from the informal sector and this is at a very high interest rate, thus

    reducing the volumes of such credits, and by far has been for

    investment purposes (1?') and more for family emergencies (52')

    and social e#penditures (12').

    !here are a number of factors why rural crediting by the formal sector

    has not taken pace so far.

    $igh fiscal deficits have meant that ;overnment is appropriating

    a large share of financial savings for itself.

    :ersisting interest rate restrictions reduce the attractiveness of

    lending, particularly to small, rural clients.

    n the other hand, informal credits have been attractive although high

    interest rates due toJ

    Fle#ible repayment options

    -onvenience and fre*uency with which such loans can be

    accessed

    ( 29 )

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    !he dependency of poor for credit on their family is ?2' while only

    5' out of total creditor is taken through $;s. Moneylenderspercentage in total credit is ?3' which show the dependency onmoneylender. Merely 5' share in total credit show the need toconcern about it.

    ecent trends in micro finance

    !he scenario of microfinance sector facing drastically changes recently.!he initial trademark of -9 (-orporate ocial 9esponsibility) is nowchanges to profit earning sector. Many big corporate giant are mullingtowards the microfinance sector.

    1. etailers in micro finance

    /ow it is clear that microfinance is a large untapped market. !oday

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    foray for 9eliance -apital in this area.9eliance -apital plans to fund microfinance institutions initially in;u+arat and Maharashtra, before spreading out on a national scale.

    MA Financial ervices, with =1 branches across ;u+arat, caters to

    over 5,%&,&&& customers in the urban, semiurban and rural markets.Pardan !rust offers microfinance to farmers, small shopkeepers,artisans, small enterprise workers and individuals engaged in animalhusbandry. ndian microfinance space is getting hotter with MFs likeQ.

    2. Money transfer

    A new concept comes in micro finance is CDhan thanantran

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    0G Bank, also launching its microfinance division 0G Microfinancendia today, has signed an Mo4 for technical collaboration with Bostonbased Accion nternational, a microfinance institution. 0G Bank hasset apart 9s 1& crore for the ne#t two years for the microfinancedivision. !he division will offer credit, savings, insurance and

    remittances in phases to the urban and rural poor.

    nternational bank AB/ AM9 also targeting to reaches 1& lachousehold by 5&&2 with maintaining a Cnil< non performing assetsportfolio.

    '. Indi$idual in$estor

    /ow microfinance is not merely social services, individual investor canearn money through investing money in micro finance sector. Manyorganiations like -alvert Foundation, 9M offering the investment inmicrofinance sector.

    Terms o" inestment

    nterest rate 5.& per yearMaturity 15 monthecurity issuer -alvert Foundation, 9M etc.

    !his security is not a mutual fund not FD- or :- and has certainrisk.

    ,. 8iometric "&M ac9ed microfinance initiati$eFor long, bankshave been lenders to their rural customers. /ow theyhave announced some rather uni*ue ways in micro financing to getthem to deposit savings,-itibankhas launched the :ragati saving account for its micro finance

    customers. !his account is similar to a no frills account and does notre*uire any minimum balance.

    !he bank will provide services through a biometric A!M that will alsospeak to customers in $indi, Marathi, !amil and !elugu.

    IAs the customers start saving, there will be ability to sweep thismoney into deposits so that they earn better interest than the

    ( 33 )

    http://news.moneycontrol.com/india/news/business/microfinancingatm/citibanksbiometricatmbackedmicrofinanceinitiative/20/44/article/254162http://news.moneycontrol.com/india/news/business/microfinancingatm/citibanksbiometricatmbackedmicrofinanceinitiative/20/44/article/254162http://news.moneycontrol.com/india/news/business/microfinancingatm/citibanksbiometricatmbackedmicrofinanceinitiative/20/44/article/254162http://news.moneycontrol.com/india/news/business/microfinancingatm/citibanksbiometricatmbackedmicrofinanceinitiative/20/44/article/254162
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    conventional saving account. As we start getting imprints of customersin terms of deposit behaviour we may be able to set them overdraftfacilities as opposed to convention loan,I says : Ray Qumar, BusinessManager ;lobal -onsumer ;roup, -itigroup ndia.

    ncidentally, -- Bank also has a micro saving product in rissa forfarmers. ther banks like Andhra Bank and Bank of ndia also offerbiometric A!M facility to their micro finance customers. n fact bankssee this untapped segment not as philanthropy but as sound business,at a time when cheap deposits are hard to come by.

    What is the go$ernment#s role in su!!orting

    microfinance?

    ;overnments have a complicated role when it comes to microfinance.

    4ntil recently, governments generally felt that it was their

    responsibility to generate development financeH, including credit

    programs for the disadvantaged. !wenty years of insightful criti*ue of

    rural credit programs revealed that governments do a very bad +ob of

    lending to the poor. hort term political gain is +ust too tempting for

    politically controlled lending organiations they disburse too *uickly

    (and thoughtlessly) and they collect too infre*uently (unwillingness to

    be tough on defaulters). n urban areas, governments never really got

    into the act, and subsidied micro enterprise credit is still relatively

    rare when compare to its rural counterpart.

    /ow that microfinance has become *uite popular, governments are

    tempted to use savings banks, development banks, postal savings

    banks, and agricultural banks to move microcredit. !his is not

    generally a good idea, unless the government has a clear acceptance

    ( 34 )

    http://news.moneycontrol.com/india/news/business/microfinancingatm/citibanksbiometricatmbackedmicrofinanceinitiative/20/44/article/254162http://news.moneycontrol.com/india/news/business/microfinancingatm/citibanksbiometricatmbackedmicrofinanceinitiative/20/44/article/254162
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    of the need to avoid the pitfalls of the past and a clear means to do so.

    Many governments have set up ape# facilities that channel funds from

    multilateral agencies to MFs. Ape# facilities can be *uite complicated

    and there are few successful e#amples in microfinance. uccessful

    ape# organiations in microfinance tend to be built on the backs of

    successful MFs, not the other way around. Finally, governments can

    also get involved in microfinance by concerning themselves with the

    regulatory framework that impinges on the ability of a wide range of

    financial actors to offer financial services to the very poor. !his topic is

    treated below.

    Microfinance and )a!ital euirement

    !he demand situation in the microfinance market can be gauged from

    the !ableJ

    At a Glance: Scale of Indian Microfinance

    oulation o" India 0estimate - une *12 (,13* million

    Mi!ro"inan!e Seri!es - otential !lient outrea!h 4** million

    Mi!ro"inan!e Seri!es - !urrent !lient outrea!h 0Mar. *12 4* million

    Annual gro$th in Mi!ro"inan!e Seri!es - +*5

    Mi!ro"inan!e loan ort"olio 0Mar. *12 6S' 7+ billion

    "inan!ing needs - 8 year estimate 0Set. *12 6S' 7+* billion

    Ta"le %& 'emand for micro-lendin# in Indian

    Source: Microfinance India (MFI) 2008

    ;iven these figures there is need for broad basing the reach of

    financial services to the people falling in the low income category, help

    them invest in and benefit from their skill sets and tide over the impact

    ( 35 )

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    of adverse shocks in the process. !he intentions might sound *uite

    philanthropic however microfinance is turning out to be a profitable

    market for commercial banks which is *uite evident from their

    presence in this area. !he new commercial banks do not have the

    infrastructure to ensure the last mile connectivity and have to rely

    heavily of microfinance institutions (MF).

    )hallenges in the Indian conte5t

    !raditionally bankhave usually not provided financial services to clients

    with little or no cash income. Banks must incur substantial co! to

    managing a client account, regardless of how small the sums of money

    involved. For e#ample, the total revenue from delivering one hundred

    loans worth N1,&&& each will not differ greatly from the revenue that

    results from delivering one loan of N1&&,&&&. But it takes nearly a

    hundred times as much work and cost to manage a hundred loans as it

    does to manage one. A similar e*uation resists efforts to deliver other

    financial services to poor people. !here is a break"e#en $oin!in loan and

    deposit sies below which banks lose money on each transaction they

    make. :oor people usually fall below it.

    n addition, most poor people have few assets that can be secured by

    a bank as co%%a!era%. As documented e#tensively by &ernando de So!oand

    others, even if they happen to own land in the developing world, they

    may not have effective !i!%eto it. !his means that the bank will have

    little recourse against defau%!in'borrowers.

    een from a broader perspective, it has long been accepted that the

    development of a healthy national financia% !eis an important goal

    ( 36 )

    http://en.wikipedia.org/wiki/Bankshttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Breakevenhttp://en.wikipedia.org/wiki/Collateralhttp://en.wikipedia.org/wiki/Hernando_de_Soto_(economist)http://en.wikipedia.org/wiki/Titlehttp://en.wikipedia.org/wiki/Defaulthttp://en.wikipedia.org/wiki/Financial_systemhttp://en.wikipedia.org/wiki/Bankshttp://en.wikipedia.org/wiki/Costhttp://en.wikipedia.org/wiki/Breakevenhttp://en.wikipedia.org/wiki/Collateralhttp://en.wikipedia.org/wiki/Hernando_de_Soto_(economist)http://en.wikipedia.org/wiki/Titlehttp://en.wikipedia.org/wiki/Defaulthttp://en.wikipedia.org/wiki/Financial_system
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    and catalyst for the broader goal of national econoic de#e%o$en!.

    $owever, national planners and e#perts focus their attention mainly on

    developing a coercia% bankin' ec!ordealing in highvalue transactions,

    and often neglect the delivery of services to households of limited

    means, even though these households comprise the large ma+ority of

    their populations.

    Because of these difficulties, when poor people borrow they often visit

    their relatives or the ubi*uitous local one%ender. Moneylenders often

    charge over 1&' a month, or even a few percentage points Ha dayH for

    their money. Lhile they often demonied and accused of uur, their

    services are convenient and fast, and they can be very fle#ible when

    borrowers run into problems. $opes of *uickly putting them out of

    business have proven unrealistic, even in places where microfinance

    institutions are very active.

    n nations with lower population densities, meeting the operating costs

    of a retail branch by serving nearby customers has proven

    considerably more challenging.

    Although much progress has been made, the problem has not been

    solved yet, and the overwhelming ma+ority of people who earn less

    than N1 a day, especially in the rural areas, continue to have no

    practical aspects to formal sector.

    ( 37 )

    http://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Moneylenderhttp://en.wikipedia.org/wiki/Usuryhttp://en.wikipedia.org/wiki/Economic_developmenthttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Moneylenderhttp://en.wikipedia.org/wiki/Usury
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    1

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    )urrent *ituation of Microfinance and im!ortant issues

    n 9a+asthan, microfinance is almost synonymous with elf $elp

    ;roups. !here is no other model of mF in the state. !here are

    appro#imately 1.% lakh self help groups of women. Department of

    women and child development has promoted about %&' of these

    groups. ther government departments under developmental schemes

    like ;0, Latershed Development etc, have organied another 5&5%' group. /;s have promoted remaining 5%?&' groups.

    !he elf $elp Movement started more as Csocial mobiliation< of women

    for their better place in family and society rather than Cmicrofinance

    movement< in 9a+asthan. Many voluntary organiations had been

    working with poor organiing them in Cvillage development

    committees

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    sewing, dari, galicha, candle, chalk, agarbatti, achar, bidi, papad,

    handicrafts, etc.

    But due to lack of proper marketing networks and many other reasons,

    there was mi#ed e#perience. G#cept some success stories at highly

    micro level, no significant impact is seen. t is probably a case of

    CDouble Fault< First pushing poor to become entrepreneur and that too

    in a collective way.

    Cearly !rogress in *H+8an9 lin9ageDN"8"A

    9ear o. o" SH;s!redit lin#ed

    Annual loanamount in la!

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    B!ADA in Alwar,

    AGFA / Baran and Banswara,

    49M4" in Bikaner,

    ewa Mandir in 4daipur,

    /avyuvak Mandal in Bhoruka etc.

    Need of financial ser$icesB

    t has been well researched and documented that poor have temporary

    surpluses and they are in need of services to keep their savings safe. A

    poor family may get the payment for their labour or they sell their

    small assets or crops etc. !he money received from such transactionswould have small temporary surplus, which they would use over ne#t

    few days6 months. f they do not have access to a place where they

    can save that safely, it might result in to e#penses on less critical

    items or even on things like drinking etc. t has been noticed that due

    to lack of access to banks or $;s, they keep the money in cash and it

    does not earn any interest.

    Financial needs and financial ser$ices.

    n developing economies and particularly in the rural areas, many

    activities that would be classified in the developed world as financial

    are not monetiedJ that is, money is not used to carry them out.

    Almost by definition, poor people have very little money. But

    circumstances often arise in their lives in which they need money or

    the things money can buy.

    ( 41 )

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    n tuart 9utherford

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    Migrants 9s5&&&6

    :oor mall andMarginal

    Farmers,!raditonal servicestrades

    Food, health,marriage and

    other socialobligations,e*uipments

    -onsumption

    andproductiveloans up to9s1&&&&6

    Moneylenders,

    $;s,friends,relatives

    Average Medium farmers,shopkeepers

    Lorkingcapital, agriinputs, andsmall assets

    :roductiveloans up to9s5%&&&6

    $;, :A-Banks,moneylenders

    Better

    off

    "arge farmer,

    permanent6semiprmanent +obholders,traders

    Big assets

    vehicle to payold loans,toadvance loans

    More than

    9s5%,&&&

    loans,may be upto9s.5,&&,&&&

    -ommercial

    banks, coopbanks

    &he ma7or issues that need to e addressed ar eB

    1. Access of poor to formal financial institutions.

    5. uality of the e#isting elf $elp ;roups only ?&' $;s have

    been Able to take "oan from Banks.

    ?. pread of the movementJ About &' of $;s are located in?&' of !he districts.

    . utreachJ "arge number of poor is still beyond the reach of

    $;s and Formal financial institutions.

    ( 43 )

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    %.Microfinance is limited to micro savings and credit.

    =.$uman resource challengeJ :erspective and capacities of mf

    promoters is very "imited, /umbers of skilled persons in

    microfinance is very less.

    3.Most mf products and services offered are pre determined and

    they are not based n the needs of the clients.

    . !here is double reporting (same group being reported by

    different $; :romoters), !here are also cases where one person is

    member of many groups.

    2. "argely the $;s are promoted to meet pro+ect re*uirements6

    targets

    1&. till there are many operational problems in $;Bank linkage

    11. nade*uate financial support so far on $; formation, it needs

    at least ? years, and about 9s.1&, &&&6 per $; for promoting a

    good *uality $;.

    11 Women and micro finance

    ( 44 )

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    Although men, as well as women, face difficulties in establishing an

    additional enterprise, women have barriers to overcome. Among them

    are negative sociocultural attitudes, legal barriers, practical e#ternal

    barriers, lack of education and personal difficulties.

    n spite of this, for women and especially for poor women,

    microentreprise ownership has emerged as a strategy for economical

    survival. ne of the most essential factors contributing to success in

    microentrepreneurship is access to capital and financial services. For

    various reasons, women have had less access to these services than

    men.

    n this conte#t, credit for microentreprise development has been a

    crucial issue over the past two decades. 9esearch has shown that

    investing in women offers the most effective means to improve health,

    nutrition, hygiene, and educational standards for families and

    conse*uently for the whole of society. !hus, a special support for

    women in both financial and nonfinancial services is necessary.

    9egarding limitedaccess to financial services, women depend largely

    on their own limited cash resources or, in some cases, loans from

    e#tended family members for investment capital. maller amounts of

    investment capital effectively limit women to a narrow range of low

    return activities which re*uire minimal capital outlays, few tools and

    e*uipment and rely on farm produce or ine#pensive raw materials.

    n general, women need access to small loans (especially for working

    capital), innovative forms of collateral, fre*uent repayment schedules

    more appropriate to the cash flows of their enterprises, simpler

    application procedures and improved access to saving accounts.

    ( 45 )

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    urveys have shown that many elements contribute to make it more

    difficult for women in small businesses to make a profit. !hese

    elements areJ

    o "ack of knowledge of the market and potential profitability,

    thus making the choice of business difficult.

    o nade*uate bookkeeping.

    o Gmployment of too many relatives which increases social

    pressure to share benefits.

    o etting prices arbitrarily.

    o "ack of capital.

    o $igh interest rates.

    o nventory and inflation accounting is never undertaken.

    o -redit policies that can gradually run their business (many

    customers cannot pay cash on the other hand, suppliers

    are very harsh towards women).

    Women can ma9e microcredit succeed in IndiaB

    Hndia has to understand that microfinance is workable and

    sustainable anywhere where there is poverty. And to make it

    successful, it needs to emphasie and mobilie the role of women in

    each rural and poor household,H the chief architect of BangladeshHs

    ;rameen Bank told a conference organied by the Federation of ndian

    -hambers of -ommerce and ndustry (F--). Hndia and Bangladesh

    have no ma+or difference in poverty. f microfinance or microcredit is

    successful in Bangladesh, it can be successful in ndia as well,H 0unus

    ( 46 )

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    emphasied. H!he ;rameen Bank and the work that we do is not

    something e#traordinary and neither is it a model. t is a rather simple

    way of solving the comple# problems of poverty,H the ==yearold

    economist said.

    HBangladesh is very close to achieving the 4/ millennium development

    goal of eradicating poverty. And we have been able to successfully

    reach & percent poor households.< ndia has a long way to go, but it

    can come out with e#cellent results only if it catches the pace,H he

    reiterated.

    Ho to increase and su!!ort omen>s !artici!ation in

    microfinance acti$ities?

    Both governments and donors should e#plore ways of developing

    innovative credit programs using intermediary channels or institutions

    closer to the target groups such as cooperatives, womenHs groupassociations and other grassroots organiations. avings and credit

    programs should be designed in a way not to e#clude women from

    participating.

    Additionally, there is a need to e#amine the impact of structural

    ad+ustment policies on men and women at the family level as well as

    within various subsectors of the labour market and within the small

    enterprise sector itself.

    n general terms, in order to facilitate the participation of women in

    micro and small enterprise, donors shouldJ

    ( 47 )

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    S Gncourage micro enterprise programs to develop specific strategies

    for recruiting women as clients, from within their e#isting target

    groups.

    S Gncourage micro enterprise programs to e#pand their target groups

    to include the sies and types of enterprise activities in which women

    engage and6or e#periment with assistance strategies, business and

    technical assistance needs of these types of enterprises.

    S -onsider e#panding support to a broader range of organiations,

    especially povertyfocused organiations active in rural areas. upport

    for these organiations should include technical assistance and training

    in programs planning, management and in developing teams of female

    staff to assist clients in business planning and management.

    ural Finance for ural Women

    :overty hits hardest at the female half of humankind. f woman living

    in a rural area of a developing country, they are likely to be poorer

    than a man, more vulnerable, own no land, be less educated and in

    poorer health. And you are unlikely to live as long. truggling to

    combine a Hdouble dayH of lowpaid work with care for the home, rural

    women often have to cope with fre*uent pregnancies and child

    mortality. For women, perhaps the cruelest reality of all is that they

    have less chance than men to escape from poverty. A rural woman is

    likely to have little or no say in the way the family spends its income.

    Discrimination in education is the start of the vicious spiral of poverty.

    A girl may be deprived of schooling and literacy for no other reason

    than that she is female. eventy per cent of poor women in ndia

    ( 48 )

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    cannot read or write. lliteracy often e#cludes people from written

    knowledge and decisionmaking. ome rural women have been

    affected by trade liberaliation they are unable to participate in the

    marketing of e#port crops as they lack land rights and access to

    essential farm inputs. n the other hand, some women have gained by

    securing +obs in new e#port activities. nvestment in rural women pays

    off.

    S ndian population is .1' women and %1.2' men

    S Female illiteracy is =5' whereas the male illiteracy rate is ?'

    S !he labour force participation rate of women is 55.3', less than half

    of the menHs rate of %1.='

    S n rural ndia, agriculture and allied industrial sectors employ as

    much as 2.%' of the total female labour

    S Lomen have e#tensive work loads with dual responsibility for farm

    and household production

    S LomenHs work is getting harder and more timeconsuming due to

    ecological degradation and changing agricultural technologies and

    practices

    S Lomen have an active role and e#tensive involvement in livestock

    production, forest resource use and fishery processing

    S Lomen contribute considerably to household income through farm

    and non farm activities as well as through work as landless agricultural

    labourers

    S LomenHs work as family labour is underestimated

    S !here are high degrees of interstate and intrastate variations in

    gender roles in agriculture, environment and rural production.

    ural Women at a glance

    ( 49 )

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    9ural women comprise more than one *uarter of the total world

    population. %&& million women live below the poverty line in rural

    areas... Lomen perform ?& per cent of the agricultural work in

    industrialied countries8. 9ural women the world over are an integral

    and vital force in the development processes that are the key to socio

    economic progress. 9ural women from the backbone of the agricultural

    labour force across much of the developing world and produce ?%%'

    of ;ross Domestic :roduct and well over %&' of the developing

    worldHs food. 0et, half a billion rural women are poor and lack access to

    resources and markets.I

    Need credit to rural omen

    9ural women play a fundamental role in daily management of

    agricultural activities and of the family unit. !hey are however often

    confronted with numerous obstacles when applying for credit.

    -onse*uently, they try to optimie their possibilities of accessing creditfrom the various e#isting rural finance servicesJ

    !he IunofficialI system (an alternative established by community

    members)

    !he IofficialI system (banks and other official financial institutions),

    and

    FarmersH organiations which give loans to their members

    9ural women fulfill multiple functions on a daily basisJ they are

    mothers providing for their familyHs wellbeing, farmers producing food

    for the family, shopkeepers supplying indispensable additional income.

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    !hey are also in charge of natural resources management which

    ensures future food security for their families.

    Although rural women represent a fundamental pillar for survival and

    management of the family unit, they are confronted with real

    difficulties in accessing additional resources such as credit. Parious

    barriers arise when they try to undertake or develop any income

    generating production activities.

    =oans facilitates to rural omen

    "oans play an important role in the economic, social and political

    improvement of the situation of women throughout the world.

    mproving rural womenHs access to finance gives them a chance to

    become autonomous. !his can contribute to increase agricultural

    productivity, development of incomegenerating activities alongside

    their production activities, better control of production methods, and

    improved natural resource management. As a result they will be able

    to ensure food security for the future of which they are the guarantors.

    Additional sources of finance can help in developing necessary

    commercial agriculture within the national and international conte#t,

    whilst retaining subsistence farming for the communityHs daily needs.

    By increasing their economic power, they will be able to organie

    themselves more efficiently, to affirm their position as rural women

    farmers, to participate in decision making processes and to draw up

    policies which concern them as well as defending their own interests

    with public authorities and other relevant institutions.

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    Microfinance operation. First of all, the poor repay their loans and are

    willing to pay for higher interest rates than commercial banks provided

    !hat access to credit is provided. !he solidarity group pressure and

    se*uential lending provide strong repayment motivation and produce

    e#tremely low default rates. econdly, the poor save and hence

    microfinance should provide both savings and loan facilities. !hese two

    findings imply that banking on the poor can be a profitable business.

    $owever, attaining financial viability and sustainability is the ma+or

    institutional challenge. Deposit mobiliation is the ma+or means for

    Microfinance institutions to e#pand outreach by leveraging e*uity. n

    order to be sustainable, microfinance lending should be grounded on

    market principles because large scale lending cannot be accomplished

    through subsidies.

    A main conclusion of this paper is that microfinance can contribute to

    solving the problem of inade*uate housing and urban services as an

    integral part of poverty alleviation programs. !he challenge lies in

    finding the level of fle#ibility in the credit instrument that could make it

    match the multiple credit re*uirements of the low income borrowers

    without imposing unbearably high cost of monitoring its enduse upon

    the lenders. A promising solution is to provide multipurpose loans orcomposite credit for income generation, housing improvement and

    consumption support. -onsumption loan is found to be especially

    important during the gestation period between commencing a new

    economic activity and deriving positive income. -areful research on

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    demand for financing and savings behavior of the potential borrowers

    and their participation in determining the mi# of multipurpose loans

    are essential in making the concept work.

    Gventually it would be ideal to enhance the creditworthiness of the

    poor and to make them more IbankableI to financial institutions and

    enable them to *ualify for longterm credit from the formal sector.

    Microfinance institutions have a lot to contribute to this by building

    financial discipline and educating borrowers about repayment

    re*uirements.

    13. 8iliogra!hyB

    LGB!G

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    1. www.microfinancegateway.org5. www.coolavenues.com?. www.wikipedia.com. www.wikianswers.com%. www.indianmba.com

    =. www.wikipedia.org3. www.thehindubusinessline.com. www.hindu.com2. www.littleindia.com

    R49/A" A/D MA;AT/G

    1. -entre for microfinance, Raipur5. -entre of /ABA9D, Raipur?. Magaine Micro finance world.(RanMarch &2)

    . Business ndia.(may ?, 5&&2)%. Rournal management trends (march&) vol.% no. 1 E 5=. +ournal Dimensions (March&) vol.11 no.

    (DM ins. f mgmt. dev. Mysore)