wat is micro finance. how will it work in india

1. Business
Communication
Presented By:-
Ankur Keshari & Shaiffali Arora

2. What is Micro Finance
 Providing very poor families with very small
loans.
 Financial products targeted at low-income
clients.
 Give right to invest according to their own
priorities.
 Amount can be between Rs. 5,000 to Rs. 10,000.
 Encourage them for saving their future.
 Refers to loans, saving, insurance, and other

3. Sector in which Micro Finance
works

4. Clients of Micro Finance
 Mainly persons who don’t have stable source of
income.
 Low income persons with no access to financial
institutions.
 70% of Indians living in villages needs financial
support.
 Especially self employed or house hold
entrepreneurs.

5. Main difficulty in Micro
Finance
 Evaluate the credit worthiness of the
client
 Expenses incurred are same for low
amount loans
 Personnel and Resources required
are also same.

6. Competitio
n
 Consultative Group to Assist the Poor
(CGAP)
 Asian Development Bank
 Dell Foundation
 Grameen Bank
 NABARD (National Bank for Agriculture
and Rural Development)

7. Services Offered In Micro Finance
Sector
Short Term loans
Micro Insurance
Savings Account Facility
Money Transfer System
Repeat Loans
Relative Unrestricted uses

8. Areas of
Investment
 Basically Rural areas are best part to
start
 India has a population of 110 crore and
70% of the population lives in rural
areas.
 India is 4th largest economy in
purchasing power & 10th most
industrialised country

9. Micro Finance will success in
India
 Well developed banking system
 Skilled knowledge work force
 Easy Trade and Investment Policy
functioning
 Retail Market is expected to grow at
the rate of 18% annually