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P. 1
Vol III

Vol III

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Published by siddhart.misra3428

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Published by: siddhart.misra3428 on Jun 04, 2009
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06/16/2009

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Samridhi has entered into an agreement withIDBI Fortis Life Insurance Co Ltd. Amongst thefastest growing private life insurance companies,IDBI Fortis, will provide affordable life insurance
coverage to Samridhi‟s entire clientele. Theproduct is titled „Microsurance‟. Samridhi Financial Ser-
vices (SFS) will be amongst the first few to benefitfrom the new product. The rates being charged areamongst the most competitive in the industry and awin- win deal for all the stakeholders involved.Samridhi has been selected as one of the partner in the RBS Foun-dation/MicroSave Technical Assistance Programme based on theRapid Institutional Assessment (RIA) conducted by the MicroSavein January. This is going to be an intensive partnership for oneyear starting from April and a 'slowed down' partnership for nextsix months subsequently.To start with an exposure visit has been planned in March to seea reputed mid sized MFI. The idea of the exposure is to see howcommercial microfinance operations are run professionally and inthe process take back any learning gleaned through the exposure.For the month of April, the event is Mini AMI. Mini-Applied Mi-crofinance Institute is specially tailored for the smaller MFIs andwill have componentson Process Mapping,HR, Finance and Ac-counts.
Samridhi ties up with IDBI Fortis for itsInsurance needsSamridhi selected for RBS Foundation/MicroSave Technical Assistance Programme
2 MARCH , 2009VOLUME 1, ISSUE 1II
 
PAGE 2VOLUME 1, ISSUE 1II
the growingtrend of many Web2.0 Microfi-nance ven-tures.Even with-out largeamounts of investment, people in richcountries (the so called de-veloped or First World) canhelp small entrepreneurs inthe less developed (or asthey say Third World) coun-tries, to develop their busi-ness by placing those fundswould not otherwise obtaincapital to develop their busi-nesses.Web 1.0 companies such as PayPalhave opened the way for simplerways of transferring money. With-out having to go home, sit at yourcomputer, load the internetbrowser and access a PayPal ac-count. Then came players likeZopa, Kiva, Prosper, etc.The idea of Web 2.0, is to haveits user participate as an activemember (by contributing) andnot to be only a passive visitor.Characteristics of Web2.0 are:
• An architecture of participa-
tion and democracy
 – 
Participa-tory Web
• Users exercise control over
the data
• Network as platform
 
• Some social networking as-
pects
• A rich, interactive, user
-
friendly interfaceNow the world around us tendsto revolve around one thing:money. And if Web 2.0 is aboutsocial interactions then one canthink of mixing these two. Buildup on this concept one can see
 Zopa.com is another fruit of Web 2.0 and social networks, in this case applied to thefield of loans, a kind of P2P, something like'money exchange' instead of 'file sharing'. Zopa is an acronym for 'zone of possibleagreement'. Detail on the next page.
P2p microfinance: A New Web 2.0 trend part I
 
 
PAGE 3VOLUME 1, ISSUE 1
Zopa is the world's first socialfinance company. In 2005 theypioneered a way for people tolend and borrow directly witheach other online as part of ourcontinuing mission to give peo-ple around the world the powerto help them financially at thesame time that they help others
.
Launched by Richard Duvall,thecreator of the an Internet bank Egg.com, with an idea of having'Ebay Of Money'. The model isbased on peer-2-peer: thus who-soever in need of money, haveto reports on the websitezopa.com and announced howmuch is the requirement, forwhat period under, what inter-est he is prepared to pay. Bid-ders can participate with be-tween 10 and 25,000 pounds ormore if a licensing deal. Thenthey deposited the money into aspecial account in his name andunder a pre-agreed annualizedand then they also determinethe amount of borrowing by thedebtor, in packages as small as10 pounds.
For Lenders
, Lenders pay an an-nual 1% fee on the amount they lendto borrowers. They are not chargedfor money which has not been lentout. The fee is accrued on a dailybasis equivalent to 1% p.a. and de-ducted monthly from their holdingaccount balance. A lender lending£1,000 at 7% would earn £70 of in-terest each year if the money is al-ways lent out and paid back. Theywould pay a fee of 1%, or £10, intotal. Zopa deduct the fee from theholding account balance on a
For Borrowers
, Borrowers pay afee of £94.25. The fee is paid upfront when the loan application isagreed. A borrower taking out aloan of £5,000.00 would have thefee of £94.25 added to their loanamount. Because Zopa only lendmoney in chunks of £10, an extra£100 is added to the loan and oncethe fee has been deducted, theborrower would get £5,005.75paid into their bank.monthly basis, once the lender hasreceived the monthly repaymentsfrom their borrowers.If a borrower defaults on part of their loan, the lender is not charged afee for that part - that would just bedaft. And similarly, if a borrower re-pays early, the lender pays no fee onthe portion of the loan that has beenrepaid.
How Zopa Make Money ?
 
If they don't like the rates to-day, they can come back tomor-row to see if things havechanged.
To reduce any risk, Zopa lend-ers only lend small chunks toindividual borrowers. A lenderlending £500 or more wouldhave their money spread acrossat least 50 borrowers.
Borrowers enter into legallybinding contracts with theirlenders.
Borrowers repay monthly bydirect debit. If any repaymentsare missed, a collections agencyuses the same recovery process
Zopa look at the credit scoresof people looking to borrowand work out whether they fitinto the A*, A, B, C or Youngmarket. If they're none of these, then Zopa's not forthem.
Lenders make lending offers
 – 
 'I'd like to lend this much to A-rated borrowers for this longand at this rate.'
Borrower‟s sizes up the rates
offered to them, and snap upthe ones they like the look of.that the high street banks use.
Zopa earns money by chargingborrowers a £94.25 transactionfee and lenders a 1% annual ser-vicing fee. And everyone's happy
 – 
lenders get great returns, bor-rowers get great rates, andthere's not a bank or a bank manager in sight.
How it works ?
Zopa.com: 'zone of possible agreement'

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