Micro finance

1. INDIRA GANDHI UNIVERSITY
MEERPUR , (REWARI)
Submitted to. : dr. pinki
submitTED BY : bhanu partap (06)
Sangeeta (07)
Roma (08)
Parveen (09)
NITESH (10)
CLASS : MCOM(HONS.) 6TH Semester

2. ROLE OF MICRO FINANCE IN
RURAL DEVELOPMENT

3. WHAT IS MICRO FINANCE?
IT IS DEFINED AS, FINANCIAL
SEVICES SUCH AS SAVINGS
ACCOUNTS, INSURANCE FUNDS AND
CREDIT PROVIDED TO POOR AND
LOW INCOME CLIENTS SO AS TO
HELP THEM INCREASE THEIR
INCOME, THEREBY IMPROVING
THEIR STANDARD OF
LIVING.MICROFINANCE SERVICES
ARE DESIGNED TO REACH
EXCLUDED CUSTOMERS, USUALLY
POORER POPULATION SEGMENTS,
POSSIBLY SOCIAL MARGINALIZED
,OR GEOGRAPHICALLY MORE
ISOLATED,AND TO HELP THEM
BECOME SELF-SUFFIENT.

4. FEATURES
 PREFER WOMEN CUSTOMERS OVER MEN
 PROVIDES TINY LOANS FOR SHORT TERMS
 PREFER SAVING OVER BORROWING
 PROVIDES FINANCIAL SERVICES TO RURAL AREA
PEOPLE
 LOANS ARE OFFERED WITHOUT COLLATERAL
 LOANS ARE GENERALLY TAKEN FOR INCOME
GENERATION PURPOSES.

5. Problems in rural area
 Education
 ELECTRICITY
 Jobs
 Roads
 Scope for development
 Illiterate administration
 No modern facilities
 Discrimination

6. ROLE OF MICROFINANCE IN RURAL
DEVELOPMENT
 POVERTY REDUCTION
 WOMEN EMPOWERMENT
 CREDIT TO RURAL POOR
 MOBILIZATION OF RESOURCES
 PROMOTES SAVINGS AND BANKING
HABIT
 ECONOMIC GROWTH
 SOCIAL AND ECONOMIC JUSTIC

7. POVERTY REDUCTION
IMPROVED ACCESS AND EFFICIENT
PROVISION OF SAVINGS,
CREDIT,AND INSURANCE FACILITES
IN PARTICULAR CAN ENABLE THE
POOR TO SMOTH THEIR
CONSUMPTION.
GOVERNMENT,NGOs AND OTHER
FINANCIAL INSTITUTIONS HAVE
INTRODUCE TO REDUCE POVERTY.
MICROFINANCE BY PROVIDIND
SMALL LOANS AND SAVINGS
FACILITIES TO THOSE WHO ARE
EXCLUDED FROM
COMMERCIALFINANCIAL SERVICES
HAS BEEN DEVELOPED AS A KEY
STRATERGY FOR REDUCING
POVERTY THROUGHTOUT THE
WORLD.

8. WOMEN EMPOWERMENT
IN RURAL AREAS WOMEN LIVING
BELOW THE POVERTY LINE ARE
UNABLE TO REALIZE THEIR
POTENTIAL.MICROFINANCE
PROGRAMMES ARE CURRENTLY
BEING PROMOTED AS A KEY
STRATERGY FOR SIMULTANEOUSLY
ADDRESING BOTH POVERTY
ALLEVIATION AND WOMEN’S
EMPOWERMENT. THE SELF HELP
GROUPS(SHGs)OF WOMEN AS
SOURCE OF MICROFINANCE HAVE
HELPED THEM TO TAKE PART IN
DEVELOPMENT ACTIVITIES.

9. CREDIT TO RURAL AREA
CREDIT IS AN IMPORTANT INSTRUMENT FOR RURAL DEVELOPMENT.MOST OF THE
AGRICULTURE CHORES STILL DEPEND ON MANUAL LABOUR. THE INVESTMENT IN
RURAL AREAS HAS BEEN ON A LOW WHICH EFFECTIVELY RESULTS IN LOW OUTPUT
AND PRODUCTIVITY IN ALL KINDSOF ACTIVITIES. A CAPITAL INFUSION FOR A JUMP
IN PRODUCTIVITY IN REFERENCE TO BOTH AGRICULTURAL AND NON-
AGRICULTURAL ACTIVITIES CAN BE ACHIEVED BY REFORMING CREDIT AND
BAKING SYSTEM.DURING THE GESTATION PERIOD BETWEEN SOWING AND
HARVESTING SEASONS,FARMERS NEEDS CREDIT TO MAKE ENDS MEET,THERE
GENERAL NEEDS ETC ADDITIONALLY, THEY ALSO NEEDS CREDIT TO VENTURE INTO
MODERN AGRICULTURAL TECHNIQUES,TO BUY CATTLE,LAND ETC.
TO PROVIDE CREDIT TO RURAL AREA NABARD WAS ESTABLISHED.ALTHOUGH RBI IS
THE NATIONAL BANKING APEX BODY. NABARD HAS BEEN GIVEN POWERS THAT
ESTABLISH IT AS THE APEX BAKING BODY IN RURAL INDIA WHICH REGULATES ALL
THE CREDIT AND BANKING ACTIVITIES OF RURAL INDIA.

10. MOBILIZATION OF RESOURCES
MOBILIZATION OF
RESOURCES MEANS PLAN A
PROPER UTILIZATION OF
RURAL AREA RESOURCES
LIKE- LAND, LABOUR
,MACHINES, MONEY ETC. SO
THAT THEY CAN BE UTILZED
PROPERLY AND IN EFFICIENT
MANNER AS RESOURCES
ARE SCARRRED .

11. PRMOTES SAVIND AND BANKING HABITS
• INTEREST GIVEN
•IMPROVENT IN LIFESTYLE
•TAX SAVING
•EASY AVAILABILITY OF
LOAN
•TAKE BENEFITS OF
GOVERNMENT SCHEMES
• SAFETY FROM FRAUDS

12. ECONOMIC GROWTH
•DUE TO EASY AVAILABILITY OF FINANCE
•LOW INTEREST RATES
•PROPER UTILIZATION OF RESOURCES
•WOMEN EMPOWERMENT
•EXPEND OF SMALL BUSINESS
•INCREASE IN PERSONAL INCOME
•IMPROVENT IN INDIVIDUAL LIFE STYLE

13. SOCIAL JUSTICE
•BY PROVIDING EQUAL RIGHTS TO
WOMEN
•BY OPENING BANKS IN RURAL AREAS
•PROVIDE LOAN TO SMALL
BUSINESSMAN IN RURAL AREA
•PROVIDES ALL TYPES OF SERVICES

14. COMMERCIALBANKS &
INVESTMENT FUNDS
MICROFINANCE
INSTI TUTIONS(MFIs)
(NGO,ASSOCIATION &
BANKS)
SNFOUNDATIONS &
DONORS
( incl . enterprises)
Support
Organizations
(e.g. PF)
GOVERNMENT &
LOCAL BOADIES
MECHANISMS

15. 7 Ps’
STRATERGY
PRODUCT
STRATEG
Y
PROCES
SES
PEOPLE
PARTNE
RSHIP
PRODUCTI
VITY
PROTECT
ION
PROFITAB
ILITY

16. MICROFINANCE
PRODUCTS
INSURANCE PLANS
PENSION PLANS OR
LONG TERM DEPOSIT
MEDIUM TERM DEPOSIT
SHORT TERM LOAN
LONG TERM LOANS
FAMILY FINANCIAL
GOALS
ACCIDENT COST, HEALTH CARE,
REPLACEMENT COST AFTER
FLOODS etc.
RETIREMENT, FARM
EQUIPMENTS, WELLS, HOME
UPGRADATION etc.
IRRIGATION, TRANSPORTATION,
LIVESTOCK, EDUCATION, etc.
HOUSING, WELLS, IRRIGATION
SYSTEM, BOATS etc.
SEWING MACHINES, BIKES,
LIVESTOCK, RADIOS, etc.

17. THANK YOU