microfinance lions

20
Eastern India Lions Leadership Academy

Upload: lionsleaders

Post on 12-May-2015

1.438 views

Category:

Economy & Finance


0 download

TRANSCRIPT

Page 1: Microfinance Lions

Eastern India Lions Leadership Academy

Page 2: Microfinance Lions

MICROFINANCE Low cost sustainable model

ASA India International

Eastern India Lions Leadership Academy

June 2013

Page 3: Microfinance Lions

MICROFINANCE AND ITS RELEVANCE IN POVERTY ALLEVIATION

Microfinance helps poor households meet basic needs and protects them against risks.

Provide with working capital for income generating activities.

Provide with additional capital for expanding running business.

Helps in asset creation and opens up more employment opportunities in the rural areas.

Save poor from the trap of money lenders. Increased access to quality education for children, access to

better health facilities and access to information on the government schemes and programme.

Micro credit has the potential to effectively contribute to the empowerment of women and development of children.

Page 4: Microfinance Lions

RELEVANCE IN POVERTY ALLEVIATION(CONTINUED)

Linkage building with resource agencies as well as input output

markets.Social Protection through Micro insurance-life & general

insurance.The use of financial services by low-income households

leads to improvements in household economic welfare and enterprise stability and growth.

Provides access to financial services to financially excluded.

Page 5: Microfinance Lions

About ASAASA India has been incorporated under the

Indian Companies Act and registered with RBI as NBFC (applied for MFI-NBFC ).

The company is part of ASA International Group that has operations in Philippines, Pakistan, Sri Lanka, Ghana, Nigeria, Afghanistan, Cambodia.

Page 6: Microfinance Lions

ASA’s global operations

Page 7: Microfinance Lions

71` `

AS

A In

tern

ati

on

al

ASA India-Operational Areas

Number of BranchesApr’13”

State

West Bengal

127 Fifteen District-1) Darjeeling 2) Cooch Behar 3) Jalpaiguri 4) South Dinajpur 5) Malda 6) Murshidabad 7) Birbhum 8) Nadia 9) Burdwan 10) North 24 Pgs 11) South 24 Pgs 12) Howrah 13) East Midnapore 14) Hooghly 15) Kolkata

Assam 4 One District – KamrupTripura 4 One District – AgartalaBihar 2 One District – Kishanganj

Page 8: Microfinance Lions

Operational Snapshot (India)Sl. No Particulars As on 30.04.2013

1 No of states 4

2 No of Districts 18

3 No of branches 137

4 No of total members 2,27,528

5 No of active clients 1,18,308

6 No of loan officers 423

7 No of total staff 631

8 Portfolio Rs in Crores 65.07

10 PAR>30 days (%) 1.45

11 Repayment rate (%) 99.37%

Page 9: Microfinance Lions

ASA’s Innovation in Microcredit

Flexibility of group formation/No bindings on group guarantee Simplicity and transparent system Low-costs management Standardization Delegation of authority in the field level Innovative staff recruitment and on-the-job (each one-teach one)

training Simple and shorter loan processing, less waiting time for the

borrower Written manual Strong monitoring and supervision Standard and low cost structure on furniture, fixture and overall

management costs Donors free sustainable growth, high ROA and ROE

Page 10: Microfinance Lions

International Recognition and Awards“Banking at the Bottom of the Pyramid” Award by

Financial Times and International Finance Corporation (IFC) UK (2008)

Selected as the best MFI worldwide by Forbes (Dec 2007)

“The Ford Motor Model of Microfinance” Asian Development Bank

Best International Technical Service Provider for UNDP Micro Start Program in the Philippines and Nigeria

Placed in all the six categories with exceptional best result: MIX Report 2005

Empowerment of Women Award

Page 11: Microfinance Lions

Microfinance – Social Impact

Page 12: Microfinance Lions

Microfinance Plus-Social Impact

Page 13: Microfinance Lions

Impact StudyASA India – Impact through Microfinance

Client Basanti Sarkar Activity: Papad Manufacturing ASA Group: Deep First Loan Rs.10,000/- Current Loan Rs.12,000/-

Basanti’s success story goes back to 4 years ago when her husband suffered a huge loss in his Saree business. The family was pushed towards scarcity, getting out of such situation became a major challenge in absence of finance.

  She approached ASA India and narrated her situation and sought support. With funding from ASA India she decided

to go into Papad making for her livelihood activity. The activity not only supported her family, provide good education to her children, she could repay the loan as also expand her business. She continued to avail loan from ASA after repayment of the previous cycle.

  Presently her annual turnover exceeds Rs 4 lakhs with annual profits of around Rs 1 lakh.

What started as a small self-employed unit now provides employment to 8 to 10 families in the locality.

“I used to spend sleepless nights worrying about my family and children when my husband’s business failed. ASA has given me a new of life and now I am able to provide my family a good living standard.”

 

Page 14: Microfinance Lions

Impact StudyClient Mala Paul Activity: Clay modeling ASA Group: NandiniFirst Loan : Rs. 8,000 Current Loan: Rs. 15,000  “ASA support in addition to the financial security has provided us and our art recognition.”

She is an empowered woman from Kumartuli area of North Kolkata who now successfully running the business venture and assisting her husband to shoulder the responsibility of her family. Her 13 year old daughter could be educated at one of the reputed schools at Kolkata.Apart from the income her talent has been recognized at state and national level through:Various awards, recognitions, cash rewards.A documentary on her talents and achievements, the documentary being selected as 4th best out of 350 documentary.A contract from Howrah Municipal Corporation for Rs. 1,40,000/- to make clay model depicting scenes from Hindu religious epic Ramayana to be displayed at Bellilious Park.

Life has been a struggle for Mala Paul and her husband Bhanu Rudra Paul before they approached ASA India. The meager Rs. 3000 income was inadequate to make ends meet. Mala Paul approached ASA India, with ASA India’s support activity expanded; orders started flowing-in thereby the turnover and income. She kept repaying the loan in a disciplined manner, again approaching for next cycle of loan. Her business now has a annual turnover of over Rs.4 lakhs with her income more than Rs. 1 Lakh.

Page 15: Microfinance Lions

ASA – Eastern India Lions Leadership Academy

Joint endeavor towards Poverty alleviation.

Sharing the common objective of serving the community, ASA and LIONS is jointly reaching Microfinance to the bottom of pyramid. The strength of both the organization is providing impetus to bring about development and poverty alleviation.

The joint intervention is in the form of: a) ASA identifying specific branches for

deployment of funds provided by LIONS and earmarking the branch and clients as beneficiaries of LION’s funds.

Page 16: Microfinance Lions

ASA – Eastern India Lions Leadership Academy

Scope for joint endeavor towards Poverty alleviation.The strategy is self sustaining and cost effective

model.Lions routing the funding through the SBLC route

i.e.Fixed deposit in Bank offering highest

interest rate.Provide a guarantee on the lien of this fixed

deposit for Bank’s funding to ASA India whether through a cash credit.

An agreement has been entered into between ASA India and Lions detailing out the modus-operandi and the terms of tie-up.

Page 17: Microfinance Lions

ASA – Eastern India Lions Leadership AcademyImpact of tie-upMicrofinance and its benefits reaching the bottom of

pyramid.Lions deploying its resources for its objective not as

one-time grant or donation but as a growing corpus.Lions reaching the collective through its other social

relevant activities.ASA availing funding at reasonable rates for onward

lending.ASA increasing its outreach and expanding

territories.Banks increasing its deposit and Priority sector loan

portfolio.

Page 18: Microfinance Lions

– Eastern India Lions Leadership Academy

Joint endeavor towards Poverty alleviation.

Other social intervention by LIONS integrated into the Microfinance activity.

Microfinance ++ activities also integrated into the scheme.

Page 19: Microfinance Lions

ASA InternationalOur thanks to LIONS for the opportunity to

make this presentation.

We look forward to meeting you again, as also a binding and long term relationship to bring about development at the bottom of pyramid.

Page 20: Microfinance Lions

Eastern India Lions Leadership Academy