case study on micro finance with education by anusha pai

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Case Study onMicrofinance with

EducationBy:Anusha Pai


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India despite economic growth is home tosome of the smallest and mostundernourished people in the world. Incomeis only 1 dimension of poverty, a very

important one.Microfinance institutions (MFIs) have been

commercialized.Commercial investors were not interested in

buying equity because profits cannot betaken out of an NGO. Banks were not keen tolend money because NGOs assets cannot beattached easily. They use poor as puppets.

Microfinance withEducation


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These days microfinance is a bidding enterprise inthe rural areas where the poor and the needy aregiven loans for small amounts without any securitybut at one.

Our project idea combines two basic needs ofgrowing India: Finance with Education.



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In this project, the poor will be given loansprovided they send their children to someEnglish medium schools and the interestrates will be cut down accordingly.

The interest rate will be cut down further ifthey send their daughters to school.



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Q.1 Design the role of

MIS in this application


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MFIs, whether large or small, need to have a strong back-office MIS, before attempting to deploy anyadvanced front-end applications or delivery channels.These would be worthless without having a strong and

flexible back-office MIS in place.

Types of information system

- Manual- Computerized.

Role Of MIS


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No single information system (IS) willmeet everyMFIs information needs.

The IS needs of institutions differ in size and incomplexity. These differences are a function of manyorganizational variables.

Some MFIs still rely on manual systems, which involves

maintenance of records in forms and ledgers.Organizations having manual systems are either smallmicro-credit programs or NGOs.

Manual System


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Too laborious and time consuming.Prone to Errors.Data manipulation and analysis is very difficult.

Maintenance of large amount of data is almostimpossible.Data and information is not secured.Loosely controlled. Highly inflexible.

Disadvantages Of Manual System


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Information and data is considered among the mostvaluable assets fundamental to the success of anorganization.

The primary roles of the MIS are to captureinformation, create new information, storeinformation, and convey information to the user.

The two major objectives of MFIs areOutreach and Sustainability.

Computerized system


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It provides easy access to accurate and up-to-date information.

Activities, such as disbursements,repayments, deposits, withdrawals andmoney transfers are completed faster, bettercontrolled and with minimum opportunity forerrors.

Information is produced in user-requiredformats, which facilitates better

understanding, setting priorities, objectivesand strate .

Advantages using MIS


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Efficiency and productivity of staff is increased, asthey are able to manage more products, customers, andtransactions in less time.

To meet target market needs, introduction of newproducts and setting procedures is easy and can bequickly applied throughout the branch network.

It can also provide the flexibility to integrate withother applications and delivery mechanisms.

MIS lowers transaction cost, increases productivity,


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Simple MIS comprises of two parts.Database - data structure; an organized set

of tables designed to the needs of thebusiness. All data of the organization residesin these tables.

Application Software comprises of theuser interface, business processes,procedures, reports

Q.2) FunctionalComponents


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Basic Structure for theCore MIS for Microfinance


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Q.3)Components of

Information System


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Physical architecture consists of basic wires or cablesto gateways and powerhouses. Together with

buildings, offices, and computers, the architecture provides services of voice, data, image and video

transmission while the consistent power supply keepseverything live and running.

1. Physical Architecture(Electricity/Power &communication infrastructure)


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Three types of environment setups could bemade.

i. Standalone Environment; MIS is run onindividual PCs and data is stored locally.

ii. Local Area Network (LAN); PCs are

connected together to create a LAN. Thenetwork can be either peer-to-peer orclient/server. Desirable is the Client/servernetwork where data is stored and shared

through a server in a secure way.

2. Network


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Type of hardware depends on the networkenvironment.

A client-server environment requiers serverand switch for connecting theworkstations /PCs.

3. Hardware


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Local databases There are a number of local databases butthe most widely used databases areMicrosoft Access, FoxPro, Paradox, and filemaker.Client/Server databases

Most popular client/server databases also

called enterprise databases include; Oracle,DB2, SQL Server, MySQL, Sybase.

4. Database


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A combination of business processes andprocedures, user interface, reports andcontrols operate on top of the backendsystem.

A large variety of software development andreport generation tools are available andused to write software applications

5. Application


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Processes required toPreparation -Establish a good foundation byplanning well

Needs Analysis -Understand your requirementsand prioritize

Selection -Choose the optimal solution given yourresources

Implementation- Make it workOptimization and Maintenance- Continueto improve on its performance

Design the projectmanagement scheme


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Q.4) Challenges faced by

MFIs


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Majority of the MFIs do not have thetechnical

capacity and required resources tounderstand, adopt and implement MIS

solutions.

There is a shortage of skilled professional to

suggest the right solution.

There is poor information sharing.

In some cases there is a lack of vision and


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Q.5) MIS Characteristics

for Microfinance


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1. Cost effectiveness: Total ownership andlifetime system operations costs, includinghardware, software, network, infrastructureand human resource.

2. Functionality & flexibility: Fulfillmaximum of the current businessrequirement and Should be flexible.

3. Reliability: Incomplete and unreliablesystems are dangerous.


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4. Simple to use: Should be user friendly.

5. Scalability: System should accommodatechanges to products, services and deliverychannels. It should grow as the businessgrows.

6. Integration: Combining data frommultiple sources is of great importance tomicrofinance.


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Thank You

case study on micro finance with education by anusha pai

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