![Agenda ,[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Approach
- 1. The Centre for Micro Finance A comprehensive approach of Microfinance Karachi November 1 st , 2006
- 3. Microfinance: who are the targeted clients? Poor and vulnerable households economically at the Bottom of the Pyramid How can microfinance improve their lives? Low Income Middle Class HNI Ultra poor
- 10. CMF’s Objectives Research Influence practice Advocacy Strategy building Training
- 12. CMF collaborates with existing active players in the microfinance sector Manufacturing Companies Insurance Companies Funding Organizations MFIs/NGOs/Trust Banks/Financial Institutions Universities/ Research Institutions Regulators/ Policy Makers Government (Central and State) SMEs CDF CIRM CAFS CMF
- 15. These objectives translate into 4 Research areas to maximize microfinance impact Microfinance plus Finance and Organizational issues Policy Impact and product design 1 2 4 3 Maximize impact On client
- 29. Reduction of MFIs cost of funds: Supply-demand match assessment Supply Demand Identify potential assets to securitize/buy out Evaluate investors risk/return appetite for MFIs’ paper Check demand / supply requirements match Facilitate / structure the deal 1
- 37. Godrej Agrovet-Spandana: productivity improvement 4 Initial situation Dealer Godrej Distributor Farmer Dealer Dairy After Spandana-Godrej partnership To be piloted Spandana Farmer Godrej Spandana Chiller Entrp. Dairy Milk Cattle feed Cattle feed Piloted Loan Sales Sales Loan
- 46. CMF’s Objectives Research Influence practice Advocacy Strategy building Training
Editor's Notes
- Against an estimate demand of Rs. 20,000 crore to Rs. 50,000 crore for credit, the supply from financial sources was less than Rs. 2500 crores Traditionally, it has been believed that the poor are not bankable. The main reasons relate to Lack of information on the income flows and expenditure patterns of households (which makes it difficult to assess whether the individual will be able to pay for the services. E.g. in the urban retail client some indicators used are salary slip, income tax return, ownership of assets, number of family members, etc.) The costs of reaching services is very large. E.g. SHARE one of the largest micro finance organisations in the county employs over 3000 people to service a portfolio of Rs. 2000 million. Banks typically handle much larger amounts per individual (ICICI Bank has a 5 person micro-finance team that handles Rs. 4000 million) The absence of facilitative environment such as absence of well functioning commodity markets, non existence of credit bureaus, etc. act as a hindrance. Indian regulations do not permit MFIs to collect savings. However, the FM’s in his budget speech has allowed Banking Correspondents.
- Note: * => Maximum net revenue calculation is only taking cost of feed into account for 4 buffaloes. There might be extra costs due to vaccinations and labour costs associated with a new and more demanding feeding schedule.
- Against an estimate demand of Rs. 20,000 crore to Rs. 50,000 crore for credit, the supply from financial sources was less than Rs. 2500 crores Traditionally, it has been believed that the poor are not bankable. The main reasons relate to Lack of information on the income flows and expenditure patterns of households (which makes it difficult to assess whether the individual will be able to pay for the services. E.g. in the urban retail client some indicators used are salary slip, income tax return, ownership of assets, number of family members, etc.) The costs of reaching services is very large. E.g. SHARE one of the largest micro finance organisations in the county employs over 3000 people to service a portfolio of Rs. 2000 million. Banks typically handle much larger amounts per individual (ICICI Bank has a 5 person micro-finance team that handles Rs. 4000 million) The absence of facilitative environment such as absence of well functioning commodity markets, non existence of credit bureaus, etc. act as a hindrance. Indian regulations do not permit MFIs to collect savings. However, the FM’s in his budget speech has allowed Banking Correspondents.
- Against an estimate demand of Rs. 20,000 crore to Rs. 50,000 crore for credit, the supply from financial sources was less than Rs. 2500 crores Traditionally, it has been believed that the poor are not bankable. The main reasons relate to Lack of information on the income flows and expenditure patterns of households (which makes it difficult to assess whether the individual will be able to pay for the services. E.g. in the urban retail client some indicators used are salary slip, income tax return, ownership of assets, number of family members, etc.) The costs of reaching services is very large. E.g. SHARE one of the largest micro finance organisations in the county employs over 3000 people to service a portfolio of Rs. 2000 million. Banks typically handle much larger amounts per individual (ICICI Bank has a 5 person micro-finance team that handles Rs. 4000 million) The absence of facilitative environment such as absence of well functioning commodity markets, non existence of credit bureaus, etc. act as a hindrance. Indian regulations do not permit MFIs to collect savings. However, the FM’s in his budget speech has allowed Banking Correspondents.