microfinance is the provide loan,saving,and financial services to the poor people. microinsurance protect people from varies risk in there life. remiitance help in movement of money from one place to another.

1. A
PROJECT REPORT ON
“Microfinance , Micro saving ,
Remittance and Micro insurance ”
Submitted By:
Rahuldev verma
Ravi jadhav
Sanket Pawar
Submitted To:
Miss .Hardika jadav
PGDM AGRI BUSINESS MANAGEMENT 2017-2019
In partial fulfillment of the requirements for microfinance
(trimemester3)

2. MICROFINANCE
 MICRO FINANCE IS THE SUPPLY OF LOANS, SAVINGS, AND OTHER BASIC
FINANCIAL SERVICE TO THE POOR .

4. WHO REQUIRES MICROFINANCE
• IN INDIA GENERALLY MICROFINANCE IS SOUGHT N BY;
• SMALL AND MARGINAL FARMER.
• RURAL ARTISANS; AND
• ECONOMICALLY WEAKER SECTION
• WOMEN CONSTITUTE A VAST MAJORITY OF USERS OF MICROCREDIT AND MICRO
SAVING FACILITATES

5. MICRO SAVING
• MICRO SAVINGS IS A BRANCH OF MICROFINANCE CONSISTING OF A SMALL
DEPOSIT ACCOUNT OFFERED TO LOWER INCOME FAMILIES OR INDIVIDUALS AS
AN INCENTIVE TO STORE FUNDS FOR FUTURE USE.
• MICRO SAVINGS ACCOUNTS WORK SIMILAR TO A NORMAL SAVINGS ACCOUNT
HOWEVER ARE DESIGNED AROUND SMALLER AMOUNTS OF MONEY.

6. IMORTANCE OF SAVING
• SUSTAINABILITY & GROWTH
• THE MAIN FUNDING SOURCE FOR SUSTAINABLE GROWTH IS SAVINGS.
• ITS LESS COSTLY THAN LOANS WHICH MANY MFIS RELY ON.
• STABLE SOURCE OF FUNDING
• IMPROVES PUBLIC IMAGE & CONFIDENCE.

7. • ORGANIZATION CULTURE
• INSTILLS STRONG DEMAND ORIENTED BUSINESS MODEL.
• CREATES THE DESIRED ORGANIZATION CULTURE
• FORCED MFI TO IMPROVE PRODUCT VARIETY & EFFICIENCY OF SERVICE.
• INTERMEDIATION
• PROVIDES AN ENVIRONMENT FOR EFFECTIVE FINANCIAL INTERMEDIATION

8. PRIORITIES FOR MICRO-SAVERS
• SECURITY – FROM FRAUD, COLLAPSE OF MFI IS PARAMOUNT EVEN IN THE FACE OF INFLATION.
• LOW TRANSACTION COSTS – PROXIMITY & CONVENIENCE
• INTEREST RATES – WHEN TRANSACTION COSTS ARE LOW, SAVINGS TAKES PLACE EVEN WITH NEGATIVE REAL
RETURNS.
• CONNECTIVITY – ABILITY TO TRANSACT AT DIFFERENT BRANCHES OR PARTS OF THE COUNTRY.
• PAYMENT TRANSACTION – FACILITIES TO PAY SCHOOL FEES OR TRANSFER MONEY

9. REMITTANCE
A TRANSFER OF MONEY BY A MIGRANT WORKER AT WORK PLACE TO HIS HOME
CITY.
“MONEY SENT HOME BY MIGRANTS CONSTITUTES THE SECOND LARGEST
FINANCIAL INFLOW TO MANY DEVELOPING COUNTRIES.”

10. TYPES OF REMITTANCES
• FAMILY REMITTANCES –
THIS IS MONEY SENT BY INDIVIDUAL MIGRANTS TO FAMILY AND FRIENDS BACK
HOME.
• COMMUNITY REMITTANCES –
THIS IS MONEY SENT BY INDIVIDUAL MIGRANTS AND BY HOMETOWN
ASSOCIATIONS TO COMMUNITIES IN THEIR HOME VILLAGE(HAMLETS).

11. SENDERS
• ACCORDING TO THE FIELD VISIT AND ASKING ABOUT REMITTANCE:
• 99% OF REMITTANCE SENDERS ARE MALE.
• ABOUT 80% OF REMITTANCE SENDERS HAVE LESS EXPECTATIONS OF
PERMANENTLY STAYING IN THE DESTINATION AT ONE PLACE. THEY ARE
FREQUENTLY CHANGE THEIR LOCATION

12. RECEIVERS
• 10 OUT OF 8 RECIPIENTS OF REMITTANCES ARE WOMEN.
• REMITTANCE MONEY RECEIVED IS NORMALLY SPENT ON REQUIREMENTS.
• REMITTANCES 50-80% OF HOUSEHOLD INCOME. IF SINGLE EARNING PERSON IN
HOUSEHOLD

13. PROBLEMS WITH TRANSFER SYSTEM
• FORMAL VS. INFORMAL CHANNELS
• COST OF TRANSFER
• INADEQUATE FINANCIAL INFRASTRUCTURE

14. FORMAL VS. INFORMAL CHANNELS
• • FORMAL
• BANKS ( ATM TO ATM, NEFT)
• POST OFFICE
• MONEY TRANSFER OPERATORS (M-PAISA)
• INFORMAL
• MAIL
• FRIENDS
• SELF

16. MICRO INSURANCE
• MICROINSURANCE IS THE PROTECTION OF LOW-INCOME PEOPLE (THOSE LIVING
ON BETWEEN APPROXIMATELY $1 AND $4 PER DAY( BELOW $4)) AGAINST
SPECIFIC PERILS IN EXCHANGE FOR REGULAR PREMIUM PAYMENT
PROPORTIONATE TO THE LIKELIHOOD AND COST OF THE RISKS INVOLVED.

17. PRODUCTS
• AGRICULTURE MICRO INSURANCE
AIMS AT PROTECTING FARMERS FROM SEASONAL VARIABILITY

18. COVERS NOT ONLY THE LOAN AMOUNT, ALSO INCLUDES FUNERALS BENEFITS FOR THE POLICY
HOLDER AND FAMILY MEMBER SOMETIMES .
COVERAGE AGAINST TILL HEALTH AND MATERNITY FOR DIRECT AND INDIRECT MEDICAL COSTS
• LIFE MICRO INSURANCE • HEALTH MICRO INSURANCE

19. LINKED WITH DEATH COVER IN PERSONAL ACCIDENT PRODUCTS.
RELATED TO GROUPING OF LIFE, HEALTH AND ASSETS PROTECTION
• DISABILITY MICRO INSURANCE • COMPOSITE PRODUCTS

20. NEED FOR MICRO INSURANCE
• LOW INCOME HOUSEHOLD ARE PREDISPOSED
• TO PROTECT THEMSELVES AND THEIR FAMILIES AGAINST DIFFERENT RISKS
• POOR NEED TO BE SEEN AS A MARKET
• DEVELOPED COUNTRIES AND DEVELOPING COUNTRIES
• NEW CONCEPT FOR THE BOTTOM OF PYRAMID