Microfinance provides financial services like loans to low-income and self-employed individuals who traditionally lack access to banks. It helps meet personal emergencies as well as life events like weddings or childbirth. Major microfinance institutions in India include SKS, Share Microfinance, and Spandana Sphoorty. While banks charge interest rates from 10-12%, microfinance institutions charge much higher rates around 26%. However, the state government passed an ordinance removing interest rate limits. Better regulation is needed to provide affordable loans and prevent over-lending issues faced by some microfinance clients.

1. MICROFINANCE
PRESENTED BY,
M.HIMABINDU

2. INTRODUCTION:-
MICROFINANCE PROVIDES
FINANCIAL SERVICES TO LOW
INCOME PEOPLE AND SELF
EMPLOYED WHO TRADITIONLLY
LACK ACCESS TO BANK.

3. FINANCIAL NEEDS:-
PERSONAL EMERGENCIES:-
SICKNESS,INJURY,UNEMPLOYMENT.
DISASTERS:-
FLOODS,CYCLONES,FIRE ACCIDENTS.
LIFE CYCLE:-
WEDDING,FUNERAL,EDUCATION,CHLD BIRTH

4. ORIGIN:-
MICROFINANCE INSTITUTIONS WERE
STARTED AFTER LAUNCHING “VISION-20”
BY MR.N.CHANDRABABU NAIDU GARU.
SKS WAS THE FIRST MFI
TO GET REGISTERED
WITH THE STOCK
EXCHANGE.
THE CHAIRMAN OF SKS
IS MR.VIKRAM AKULA.

5. ESTABLISHMENT:-
NAME DATE YEAR
SHARE
MICRO
FINANCE
20.APRIL 1999
SKS 22 ,SEP 2003
SPANDANA
SPURTHI
10, MAR 2003
NIRMAL 3, JAN 1995

6. BANKS:-
BANKS LIKE ANDHRA BANK,ICICI
BANK,SBI BANK HAVE GOOD
EXPOSURE.
IN THE YEAR 2009-2010 BANKS
GAVE UPTO 9000CR ONLY BUT
MFI GAVE 12000CR.

7. BANKS:-
THE TOTAL EXPOSURE OF BANKS TO THE MFI
SECTOR COULD BE ABOVE 12000CR.
IN THE YEAR 2004,FARMERS WERE UNABLE
TO GET LOANS FROM BANKS BUT MFI HAS
PROVIDD LOANS AT HIGH INTEREST RATES.

8. INTEREST RATES:-
BANKS INTEREST RATES ARE
10%-12%AND NOT MORE THAN
THIS.
BANKS MINIMUM RATE OF
INTEREST IS 8% AND MAXIMUM
INTEREST RATE IS 12%.
MFI’S COLLECT HIGHER INTEREST
RATES WHICH IS NEARLY
26%,MORE THAN BANK.

9. INTEREST RATES:-
BUT THE STATE GOVT. HAS
PASSED AN ORDINANCE WHICH
DID NOT CONTAIN ANY
PERMITTED OR PARTICULAR
INTEREST RATES.

10. VICTIMS OF MFI:-

11. BETTER CONTROL:-
THE GOVT. SHOULD PROVIDE LOANS TO
PEOPLE REQUIREMENTS AT MINIMUM RATE
OF INTEREST.
MFI’S SHOULD PROVIDE LOANS AT LESS
RATE OF INTEREST.
MULTIPLE LENDING BY MFI’S SHOULD BE
AVOIDED.
THE STATE GOVT. SHOULD HAVE CHECK
OVER MFI’S AS IT IS DONE IN CASE OF
BANKS.

12. THANK
YOU....