Introducing the concept of Charitable Microfinance, as a renewed perspective to the dimension and dynamics of microfinance.Conventional source of finance isn't enough to tackle the challenge of poverty and abject penury. However, the proposed model of work will certainly bring in a holistic change provided it's allowed to flourish in it's vision and impacting mission.
2. 2
Nobel Price Laureate Prof. Mohammad Yunus
The man who exploded the horizon and perspectives of financing
I would say that I did
something that challenged
the banking world.
Conventional bank look
for the rich; we look for
the absolute poor.
All Humans
are born
Entrepreneurs
People should
wake up in the
morning and say,
I am not a job
seeker, I am a job
creator.
Professor Mohammad Yunus
(Founder of Grameen Bank)
3. 3
Microfinance
โMicrofinance recognizes that poor people are remarkable reservoirs of energy and
knowledge. And while the lack of financial services is not just a sign of poverty, today it is
looked as an untapped opportunity to create markets, bring people in from the margins and
give them the tools to help themselves.โ - Kofi Annan (Secretary General of the UN)
โThe poor stay poor, not because they are lazy but because they have no access to capital.
- Laureate Milton Friedman
โOvercoming Poverty is not an act of charity, it is an act of Justice. Like slavery and apartheid,
poverty is not natural. It is manmade and it can be overcome and eradicated by the actions of
human beings. โ
- Nelson Mandela
โSocial Entrepreneurs are not just content just to give a fish or teach how to fish. They will not
stop until they have revolutionized the fishing Industry. โ
- Bill Drayton (The Social Entrepreneur)
4. 4
Introducing Charitable Microfinance
Microfinance primarily emerged to fulfil a social vision. However, I strongly feel, slowly it is
drifting far away from its core in the world of commercialization, sinking deep into the game of
risk mitigation and profit maximization.
Charitable Microfinance as a term is the combination of charity and microfinance, where
Charity forms the core of Microfinance Operation.
It should be designed to go beyond the mechanism and dynamics of the current malpractices
and foster growth of the ones lost in the dire ends of poverty.
Beyond, everything else, the motivation of such ventures should be bringing socio-economic
justice to the absolute poor, suffering in the curse of abject penury.
Thus, there is a strong need for a new breed of sociopreneurs to revise the conceptual
framework of microfinance in order to achieve its ultimate goal of poverty alleviation. In a
way these group of individuals and institutions should know, go and show the way of actual
financial transformation through the execution of a charitable vision.
Multiple lending to same individual beyond the capacity of repayment, client selection based
on the capacity of repayment rather than the intensity of poverty, coercive collection practices
leading to suicides etc. stand as a proof to the above statement.
5. 5
Meet Manudi Bai
โขBelongs to a village where water in summer
or winter is a distant dream.
โขImagining winter or summer crops is
maniac.
Conventional Commercial
Financing doesnโt have a solution
to her problem, Charitable
Microfinance has.
6. 6
Manudiโs story of transformation
โขManudi Bai and four other families of her
community formed a joint ownership
group.
โข Availed a least cost microloan from PMF
โข The money was used for the construction
of a bore well.
โข Because of their endeavour they cultivated
the first wheat ever in the year 2014.
โข Their next project is rain water
conservation.
7. 7
Meet Kamala Bai
โขA widow
โขMother of 3 children
โขNo Savings
โขYoung daughter developed a cyst
โขSuspected cancer
โขNo money, approached a bank
โขApplication rejected due to lack of collaterals
Conventional Commercial Financing doesnโt have a solution to her
problem, Charitable Microfinance has.
8. 8
โขOn approaching PMF, she was immediately
released a zero cost microloan to meet
the health needs of her daughter.
โข Did the biopsy.
โข Fortunately the cyst wasnโt a cancer.
9. 9
Meet Pratap Damor
โข Once a skilled marble artist
โขFather of 3 brilliant children
โข Lost all savings, livestock in the
treatment of his beloved spouse.
โขPresently Jobless
โขHis circumstances doesnโt allow
him to migrate for employment.
โข No formal source of finance to
help him get re-established.
โขInformal source of finance is extremely dearer.
โขHad a deep desire to make his fallow land productive during winter.
โข Couldnโt afford to dig a bore.
Conventional Commercial Financing may not accomplish his dream,
Charitable Microfinance can.
10. 10
โข With the help of a series of PMFโs
Charitable Microfinance and motivation
Pratap is on his way of
Transformation.
11. 11
Meet Heeralal
โข Like any other person of his village, he was very
passionate about having access to water.
โข One night he saw a vision
โข Immediately embarked on an excavation
โข Cost him acres of land, yet water didnโt wet his hand.
โข Went on borrowing โน 50,000 @ 120% pa
(the normal rate charged by a moneylender)
โข Entire income was spent just on serving the loan.
Conventional Commercial Financing
could not fulfil his vision, but the
Charitable Microfinance could.
13. 13
Meet Munna
โข A floor polisher who won bread on labour
โข Once his child was hospitalized
โข Approached the contractor for money
โข Returned empty handed
โข Had to borrow some high cost loan
โข Thought of quitting the job and start a
polishing business of his own.
โข No formal source of finance was available
to unleash his entrepreneurial vision.
Conventional Commercial Financing could not fulfil his vision, but
the Charitable Microfinance could.
14. 14
โข With the help of PMFโs Microloan
Munna is a micro-entrepreneur now.
โขHowever this is not the end, the story
of transformation has just began.
15. ๏ฑ Nearly half of worldโs population live on less than $2.5 a
day.
๏ฑ 80% of the world population lives on less than $10 day.
๏ฑ 870 Million People worldwide do not have enough food to
eat.
๏ฑ Nearly 1 Billion people lack access to water.
๏ฑ Nearly 22,000 children die every day due to poverty.
๏ฑ Preventable diseases like diarrhea and pneumonia take the
lives of 2 million children every year
Do You Know?
16. ๏ฑ Nearly ยผ of the global poor live in India.
๏ฑ 100 Million Indians live in slums.
๏ฑ 75 Million lack decent sanitation.
๏ฑ 70% of India live in villages.
Do You Know?
17. 50% of Children are still below acceptable nutrition
level and Basic medicines for 75% of Indian Villages
are not made available.
18. 18
Solving these issues is not the job of a
single Govt. or any person or Institution,
itโs the responsibility of all...
19. ๏ฑ We select our beneficiaries based on perceptible poverty indicators/assessment
tools.
๏ฑ Do the SWOT analysis.
๏ฑ Work on developing their skill, knowledge, attitude and set SMART goals.
๏ฑ Help them get established in groups.
๏ฑ PMFโs range of services facilitate the required financial and non-financial
resources to convert strengths into core competence & weaknesses into
strengths.
๏ฑ We focus on creating success stories out of our direct beneficiaries.
๏ฑ Our model graduates become a source of inspiration and attraction for others.
๏ฑ In a way, PMFโs efforts have both direct and indirect impact on the immediate
and distant communities helping us achieve organic growth Y-o-Y.
How we help solve some of the issues?
21. How is actually
works?
PMF
Branch
Community Groups e.g.
JLGs, CLGs
Institutional
Support
More Community
Groups
Training and
Skill
Development
Charitable
Microfinance
Jacobโs Flock
Individual
Support
Gyandeep UttamswasthSuccess Stories Success Stories
22. ๏ฑ You have already done soโฆ.
๏ฑ You can adopt a locality/community/village
๏ฑ Join our Organization as Volunteer
๏ฑ Consider making a bequest to Pragati Marg Foundation.
How you can help?
23. ๏ฑ A Purpose
๏ฑ Satisfaction
๏ฑ A sense of Achievement
๏ฑ Self-worth
๏ฑ And that you have made a difference in someoneโs life.
Whatโs in it for you?