Download - Micro financing & Micro Borrowers
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MICRO FINANCING&MICRO BORROWERS
By Group 1
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ySecond fastest developingnation .. HDI rank at 134 in 2009
BPL rank at 89 in 2009
25% of population below BPL
75% of population survives on lessthan 1 $ / day
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oBusinesses involved inremoving poverty Microfinance Institutions (MFIs) Self Help Groups (SHG) SME GOV of INDIA
is there still any gap ..What happens to poorest of poor
Shankar Datta, it is not enough to give the poormoney
then what else should have to be
done.
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EQUIP MICRO BORROWERSWITH KNOWLEDGE.
Is this really being
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Gov of India initiatives
CAPART
NREGA
PMGSY
Bharat Nirman - these schemes objective is to have a
rural development..
..not only in monetary terms, but something beyond
it
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CAPART- Council for Advancementof Peoples Action and RuralTechnology It was established in1986
12,000 voluntary organizations and 9 regional committeesacross country
Up to Rs 25 lakhs can be sanctioned to each organization
Up to 1998, has sanctioned 18126 projects of Rs. "2"95.20crore. Against this, an amount of Rs. 363.8"2" crore hasbeen releasedSCHEMES
Public cooperation Organization of beneficiaries
Information TechnologyDivision
Watershed development
Disability Action Division Rural Technology Division
Young Professional Scheme Marketing Division
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CAPART
Regional Centre No of Projects Amount Sanctionedin Rs Lakhs
Ahmedabad 31 146
Bhubaneswar 77 351
Chandigarh 82 439
Dharwad 86 570Guwahati 101 375
Hyderabad 229 484
Jaipur 44 118
Lucknow 80 539
Patna 92 282
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NREGA- National RuralEmployment Guarantee Act Established in 2005
Wages of Rs.100/ day and employment not less than 100days per year
Rs.30,000 crore is the budgeted expenditure for 2009
Proportion of money from Disinvestment of PSU has beenplanned to spent on NREGA
Employment provided tohouseholds
3.57 crore
Person days in crores
Total 154.04
Women 78.01
Total no of works taken up 28.44 lakhs
Works completed 9.09 lakhs
Work in progress 19.35 lakhs
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PMGSY- Pratan Mantri Gram
Sadak Yojana
The primary objective is to provide Connectivity
368,000 km of new road construction
370,000 km of up gradation/renewal
At a cost of about $26 billion
PHASES POPULATIONCRITERIA
1 1000
2 500
3 250
No of Road WorksCleared
95124
New connectivity 63466
Up gradation 31655Completed 62942
Progress 31831
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Bharat Nirman
Rural infrastructure 2005 -2009 with total investment ofRs.1,74,000 crore
ELECTRICITY: for remaining 1,25,000 villages A.P, Gujarat, Goa, Haryana , Maharastra, Kerala,
Nagaland, Punjab,
Tamil nadu are 100% electrifiedROADS : 1,46,185 Kmsroad length is proposed to be
constructed by 2009 benefitting 66,802 unconnectedeligible habitations in the country
DRINKING WATER : 55,067 uncovered habitations to becovered by 2009.
TELEPHONE :Every village to be connected by telephone: Achieve 40% rural teledensity by 2014HOUSES : 60 lakh houses to be constructed for the rural poor by
2009 New target of 1.2 cr houses by 2014 adopted
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Some aspects of MFIs:
SHG-Bank linkage programme of NABARD - emerged as theprimary model for microfinance services
Rashtriya Mahila Kosh-rewarded with a corpus of Rs 500crore from the present Rs 100 crore
Geographically unevenly distribution
Lack of systems to check the loan-utilization
Primary objective diluted by targeting richer clients toincrease profits
Cannot mobilize large amount of lending funds due to theinappropriate legal and financial structure
Present IRDA guidelines do not permit the convergence oflife and nonlife insurance policies by the same insuranceprovider
Most of the large MFIs are not allowed to accept savings
Venture firms and private equity funds are waiting to enter
the industry
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SHGs
1.Out reach SHG members
Who does not join?
Drop outs2.The social role
Politics
Social harmony
Social justice Community action
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Sustainability & financialaspects
1.Record keeping
2.Equity
3.Default & recoveries
4.Sustainability
5.
6.
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Implications
SHGs for what? SHGs for whom? Improve transparency & record keeping
Realising the social potential How much external credit? Group enterprises
Dealing with defaults & drop-outs Promotion what, how much & for how
long? Bank & national reporting
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SME Scenario
Total no.of SMEs nearly 10.52 million as on3rd All India Census of SSI
Accounts for almost 50% of total output
and 42% of Indias total exports Clusters nearly 636 (industrial)
Total employment is 24.93 million, with perunit employment being 2.37 persons
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growth rate of employment in SSI sector
3.3
4
5.2
4.1
4.84.5
2.6
4 43.6
3.9
0
1
2
3
4
5
6
1992
-199
3
1993
-199
4
1994
-199
5
1995
-199
6
1996
-199
7
1997
-199
8
1998
-199
9
1999
-200
0
2000
-200
1
2001
-200
2
2002
-200
3
growthrate(%)
Series1
: & ,Source Ministry of commerce industries GoI
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SME in poverty reduction
High contribution to domestic production
Significant export earnings
Low investment requirements
Operational flexibility
Low intensive imports
Capacity to develop appropriate indigenous
technology Import substitution
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SME Development
Interest rate cut by SBI SIDBI awarded as Outstanding
Development Project Award for settingup SMERA
Partnership with HP to establish colourprinting solution
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Information Initiatives
1.MYSMEnews: blend of the power oftechnology with existing realities andsocial networks.
Launched in slums of Kolkata with 3,00,000micro entrepreneurs
Delivery models
Personally customized information Closing info gap
Potentially broad reach
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2.Airtel rural service
combination of distribution and service.
Identification and training of
entrepreneurs Consumer queries
3.Spoken web
4.Micro finance Management Institution5.SME Chamber of India
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CONCLUSION
Positive growth in the last two quarters
Limitations like:-
qRegulatory Restricitons
qProblem of Human Resource
qLack of Information
"Doing Good and Doing Well: The
need for balance Bright Future