MICROFINANCE – MACRO BENEFITS..??

A study to determine microfinance potentiality in current financial market scenario

Strengths of Microfinance
• Economies of scale • Development of an economy • Role of NABARD. • Disposable income • Entrepreneurial growth • Insurance

State of microfinance in India
• The microfinance in India is rapidly evolving. • 1000 microfinance institutions + 300 commercial banks reaching 17.5 million people. • There are 2.3 million SHGs covering about 32.2 million households. • Attack of politicians and bureaucrats.

Membership in MFIs- Microfinance methodology

Membership in MFIs- Legal Form

Microfinance Lending through SHG
• Self-help groups are voluntary, small group structures for mutual aid and the accomplishment of a special purpose.

Advantages are:  Homogeneous membership  No discrimination  Small membership  Transparency in functioning  Thrift

Micro Financial Instruments
MICRO CREDIT

MICRO LEASING

MICRO FINANCE

MICRO SAVINGS

MICRO INSURANCE

Current Indian Financial Market Analysis
• • • • • • • Indian Financial Market promotes the savings of the economy. There are large number of buyers and sellers. India is the 5th largest holder of foreign currency The GDP rate The per capita income has increased at 11.8% than the previous year. The recession in US will not have a huge impact on the country. India is growing at a high rate

Recommendations
• Involment of ICAI • Need of separate category of microfinance • Effective use of provisions by NBFC’s • To facilitate build of reserves. • Covering the lives and livelihoods of poor households.

Conclusion
“Poverty is not created by the poor; it is created by the

structures of society, and policies pursued by society. Change the structure so that one can see the poor change the lives. Grameen’s experience shows that, given a support of financial capital, however small, the poorer capable of bringing about an incredible change in their lives.”
~ Muhammad Yunus
Banker to the poor

Thank You

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