2. 2
Muhhamed Yunus
Yunus is the 1st Nobel Prize winner from
Bangladesh
_________________________
Founder of Grameen (Rural) Bank in 1976
_________________________
Started microfinancing by giving out a loan of
$27 to 42 women in a village in Bangladesh.
World’s Banker to the Poor
“If society was structured for self-employment, there would be no
reason to fear being poor.” - Dr. Muhammad Yunus
3. 3
Microfinancing
• Supply of capital loans, consumer credit, savings,
insurance & other basic financial services to low income
households.
• People need to run their businesses, build assets, stabilize
consumption & shield themselves against risks.
•It’s a service in which the poor people desire & are willing
to pay for.
•Loans are typically less than $125 made to the rural poor
who normally do not qualify for traditionally banking credit.
“say NO to poverty”
6. 6
Different from traditional credit
http://www.microcapital.org/downloads/resourcepapers/IADB-VillagetoWallStreet.pdf
7. 1. Conceptual Framework – Specific
Features
Sriram M. S. And
Upadhyayula R. S.
(2002)
...is generally understood but not clearly defined. Micro-finance is
conceptualized as the activity which is provided by the alternate
sector (NGOs) with a laudable intention and non-exploitative
connotations.
Thorat Y. S. P.
(2005)
(i).. it is due to our banking system which has failed to internalize
lending to the poor as a viable activity but only as a social obligation
– something that had to be done because authorities wanted it so.
(ii) Loans to the poor were part of social sector lending and not
commercial lending;
(iii) the poor were not borrowers, they were beneficiaries;
(iv) poor beneficiaries did not avail of loans they availed of
assistance.
8. Delivery Models
1 Self-Help Group
Model
• Self Help Groups are small (membership 10 to 20).
• Informal groups that have socially and economically homogeneous
membership of poor people.
• The group mobilizes savings among the members and issues need based
loans to members (only) out of the common funds created.
2 Federated Self-
help Group
Model
• There is a distinct three-tier structure in federations – the SHG is the
basic unit; the cluster is the intermediate unit an apex body or a
federation, represents the entire membership.
3 Grameen Bank
Model
• Homogenous groups of five members are formed at village level.
• Eight joint liable groups affiliate together to form a center.
• The loan is disbursed from the bank fund and Loan is given to the
individual not the group or the center.
4 Co-operative
Model
• Cooperative Development Forum (CDF) comprising Women’s / Men’s
Thrift Cooperative (W/M TC) each consisting of 300 members.
1. Microfinance Delivery Models in
India – I
9. Evolution of Microfinance
Phase 1: The Cooperative Movement (1900 – 1960)
Phase 2: Subsidized Social Banking (1960s – 1990)
Phase 3: SHG-Bank Linkage Programme (1990 – 2000)
Phase 4: Commercialization of Microfinance (2000 Onwards)
10. Indian Microfinance Industry
• First Phase: High Growth & Commercialization (2000-2009)
• Second Phase: Crisis & Volatility (2010-12)
• Third Phase: Consolidation (2012-14)
11. As per the report the top 25
Microfinance Companies in India are as
follows.
(Alphabetical Order)
Annapurna Microfinance Pvt Ltd
Arohan Financial Services Pvt Ltd
Asirvad Microfinance Pvt Ltd
Bandhan Financial Services Pvt Ltd
BSS Microfinance Pvt Ltd
Cashpor Micro Credit
Disha Microfin Pvt Ltd
Equitas Microfinance Pvt Ltd
ESAF Microfinance and Investments Pvt
Ltd
Fusion Microfinance Pvt Ltd
Grama Vidiyal Micro Finance Ltd
Grameen Financial Services Pvt Ltd
Janalakshmi Financial Services Pvt Ltd
Madura Micro Finance Ltd
RGVN (North East) Microfinance Limited
Satin Creditcare Network Ltd
Shree Kshetra Dharmasthala Rural
Development Project
SKS Microfinance Ltd
S.M.I.L.E Microfinance Ltd
Sonata Finance Pvt Ltd
Suryoday Micro Finance Pvt Ltd
SV Creditline Pvt Ltd
Swadhaar FinServe Pvt Ltd
Ujjivan Financial Services Pvt Ltd
Utkarsh Micro Finance Pvt Ltd
Indian Microfinance Industry
