STATES COVERED BY BAIF PROGRAMME

Spread of the program

• Families covered 2.5 million

• Villages 45000

• States covered 12

• Extension centers 1600

Existing Proposed

FEATURES OF THE AREA COVERED

• AGRICULTURE AS SOURCE OF LIVING

• SMALL LAND HOLDING PER FAMILY

• RAIN FED AGRICULTURE SYSTEMS

• MIGRATION FOR LIVELIHOOD

• AVERAGE FAMILY SIZE - 5

• LITERACY RATE 60% LESS IN WOMEN

• CONSTRAINTS IN ACCESS TO CREDIT

•States – 5

•Clusters – 11

•Families – 45651

CLUSTERS COVERED UNDER EUROPEAN UNION PROJECT

OBSERVED CATEGORIES OF LOW

INCOME LEVEL GROUPS

Group Yearly income % households

level (Rs)

W1 <3000 47

W2 3000-6000 34

W3 6000- 9000 14

W4 9000-11200 5

Poverty line Rs. 11200

APPROACH TO MICRO CREDIT

• Initiation by integration to social

development approach

• Started as component of women

empowerment

• Started through women self help Group

• Targeted at fulfilling family needs

CHARACTERS OF SHG

• FORMATION OF VOLUNTARY GROUPS

• INITIAL MEETINGS WITH PRAYERS FOR SOCIO CULTURAL INTEGRATION

• UNIFORM PERIODICAL INDIVIDUAL MEMBER SAVINGS PROMOTED

• SAVINGS USED AS LOANS FOR THE MEMBERS OF THE GROUP

• CHARGE INTEREST ON LOAN

• FOLLOW 16 POINT SCALE FOR BANK LINKING

PRESENT STATUS OF SHGs

Rs. 212.40

Million

Accessedl Credit5

Rs. 99.6

millions

Total Savings4

1410Groups linked to Bank3

7897Total No. of SHGs2

2747Total No. of Villages 1

Details Particulars No.

ON FARM ACTIVITIES

Cashew with wheat Grafted tamarind

Indian gooseberry Budded Ber (4th year)

LIVESTOCK AS ACTIVITY

OFF-FARM ACTIVITIES

Production of Housing Materials Flour Mill

Consumer StoresRope Making

EDUCATION

HEALTH

MARRIAGE

OTHERS

ACTIVITIES FOR WHICH MICRO-

FINANCE SOUGHT

• LIVESTOCK

(CATTLE,BUFFALOES,GOATS) 31%

• ON FARM 34%

• NON FARM ACTIVITIES 31%

(LIKE GROCERY SHOP,

CLOTHES STITCHING, ETC)

• OTHER FAMILY NEEDS 4%

(SCHOOLING, MARRIAGE ETC)

7%

3%

33%27%

20%

10%

Supplementary to agriculture

Supplementary to day labor

Milk for kids and sell surplus

Add to existing milk business

Consumption only

Supplementary to other

business

REASONS FOR SELECTING TO BUY COW

LESSONS LEARNT

• Poor can also save• Poor can pay interest at market rates• Credit can be for any need• Credit amount based on payment capacity and track record• 100% recovery essential• Full transaction costs must be met

Share o f the M icro F inance pie in

India

Enablers

59%

Delivery

41%

SHARE OF DIFFERENT PLAYERS

Share of M icro finance pie in BAIF

Enabler

82%

Delivery

18%

POTENTIAL AND CURRENT

ACHIEVEMENT

St at us o f micro f inance out reach in Ind ia

Unt apped

Pot ent ial

85%

Current

15%

Status o f M icro f inance o utreach in BA IF

Untapped

Pot ent ial

93%

Current

7%

ISSUES NEEDING ATTENTION

• ASSESSING FELT NEEDS OF THE SOCIETY

• IDENTIFYING ECONOMIC ACTIVITY AND CORRESPONDING SOCIAL GROUPS

• IDENTIFYING REGIONAL FACTORS AFFECTING SOCIO-ECONOMIC HARMONY

• IDENTIFYING VOLUNTARY GROUPS FACING ECONOMIC POVERTY

• SEARCHING MODELS FOR CAPACITY BULDING AT ALL LEVELS

ISSUES NEEDING ATTENTION

• ARRIVING AT OPRATIONAL STANDARDS

FOR WORKING OF VOLUNTARY GROUPS

SEEKING MICROFINANCE

• DEVELOPING INFORMATION SYSTEMS

FOR TRACKING LENDING ACTIVITY

• IDENTIFYING DIVERSIFICATION AREAS

FOR MICROFINANCE

ISSUES- OPERATIONAL

• CREDILBILITY OF THE GROUP MEMBER

• LIMITED FINANCIAL RESOURCES

• NO PROVISION FOR COLLATERAL SECURITY

• LACK OF INSURANCE SERVICES FOR ASSETS AND/OR MEMBER

• FAILURE OF PROPER ACCOUNTING AND REVIEW OF STATEMENTS

• EFFICIENCY OF EXTENSION STAFF

• CASH HANDLING BY STAFF

• DISTANCE FROM OFFICE

FEW SUGGESTIONS

• SCOPE SHOULD BE SEEN IN THE LIGHT OF GEO-CULTURAL PERSPECTIVES

• SUCCESS IN NEED PRIORITIZATION WILL DETERMINE SUCCESS RATE.

• IN LOW INCOME AND ILLITERATE/LOW LITERATE SOCIETY, FINANCIAL RESPONSIBILITY OWNED BY GROUP SEEMS TO BE MORE REWARDING THAN INDIVIDUAL LENDING.

• HOLISTIC UNDERSTANDING OF LENDING ENVIRONMENT NECESSARY BEFORE FINALIZATION OF STRATEGY

FEW SUGGESTIONS

• STRATEGISE AFTER UNDERSTAND SOCIOCULTURAL VARIATIONS

• CONCENTRATE ON LIVELIHOOD ACTIVITIES IN AGRICULTURE

• FORMULATE VOLUNTARY SOCIAL GROUPS FACNG ECONOMIC POVERTY

• TRAINING AND EQUIPPING THE GROUPS FOR MICROFINANCE

• ENSURE EFFECTIVE ACTIVITY DELIVERY THROUGH TECHNICAL SUPPORT

• ESTABLISH INFORMATICS FOR REVIEW AND MONITORING

• ENSURE GROUP RESPONSIBILITY FOR LOAN REPAYMENT

Thank You!