30$f
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

30$f

on

  • 272 views

30 Dollar Finance

30 Dollar Finance

Statistics

Views

Total Views
272
Views on SlideShare
272
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

30$f Presentation Transcript

  • 1. 30 Dollar Finance By Snehal Fulzele 12/12/2009
  • 2. Agenda
    • Problem – vicious cycle of poverty
    • Microfinance - a solution??
    • 30 Dollar Finance
      • Goal
      • Operation
      • 30DF system
      • Risk
    • Questions
  • 3. Problem – Vicious Cycle of Poverty
    • Poverty, low earning capacity
    • No collateral
    • No credit history
    Formal Banking Sector
    • Loan Sharks
    • Charges 60-120% interest rate
    • Zero growth
    • No entrepreneurial activities
    • Only repayment to loan sharks
    • Stunted mental and physical growth
    • Poverty continues
  • 4. Problem – Vicious Cycle of Poverty
    • Wrong notions
      • Poor can’t be entrepreneurs
      • Microfinance is a riskiest investment
    • What do poor need?
      • Access to formal banking and credit
      • Thereby, raise income and become self sufficient
      • Maybe, informal training in using the credit towards small business
  • 5. Microfinance – Bank the un-banked!
    • Extension of loans to the un-banked
    • Small (micro!!) loans for small informal businesses
    • Microfinance Institutes (MFI)
      • Non-profit, NGOs turned in to MFI
      • Provides micro credit to poor
      • Provides training to poor to succeed in their informal businesses
  • 6. Microfinance – Bank the un-banked!
    • Poor Beneficiaries
    • No collateral
    • No credit history
    • Informal businesses
    • (e.g. Dairy, Agriculture related)
    • Source of Funds
    • NGOs
    • Investor
    • Banks
    • Microfinance Institute
    • Does on-field transactions
    • Lending, auditing and collection
    • Trains poor beneficiaries
  • 7. Microfinance – Effective yet costly!
    • MFI Operations
      • Funds from banks @ high interest rate
      • High operating cost
      • Resulting in to high interest rate (around 20%) for end beneficiaries
    • Really, 20 % ………..!
      • How would you feel if you were to pay 20% interest rate on your loan
      • Ironically, the repayment rate is almost always very high
    Poor are paying 20% instead of 100% ROI, good huh!
  • 8. 30DF - Goals
    • Lone goal of reducing the interest rate!!
    • By products 
      • Making credit affordable for poor!!
      • Making it readily available for poor!!
      • Doing a bit to engage poor in self-employment!!
  • 9. 30DF - Model
    • An online system to
      • Allow the social investors to browse beneficiaries
      • Hosts beneficiary profiles detailing what her plans are with the money
      • Constant updates for tracking your investment in the poor
    • A Glimpse…..
      • http://www.30df.org/
  • 10. 30DF - Model
  • 11. 30 Dollar Finance (30DF)
    • A non profit 501(c)(3) based on the concept of microfinance
    • An ‘ Investment based ’ non-profit
    • Provides platform for social investors to invest in specific beneficiaries
    • Provides high level of transparency in the way investor’s money is being used
  • 12. 30 Dollar Finance (30DF) - Transparency
    • Specific Beneficiary
    • Business and background information
    • Contact information
    Social Investor Invests in
    • Regular updates via email
    • When money reaches the beneficiary
    • Repayment plan
    • Each repayment/defaulter information
    hosts
  • 13. 30DF - Risks
    • Microfinance model itself makes it less risky
      • Group ownership
      • Poor do not want to lose the only access to formal banking
    • In India, banks believe in micro finance, can’t you?
    • Ask yourself a question, which investment is risk free?
      • Wise men will say – None!!
  • 14. 30DF – A Tour
    • http://www.30df.org
  • 15. 30DF – Q n A
    • Questions
      • Send questions to [email_address] and [email_address]