Microfinance {SAY NO TO PROVERTY}

         Microfinance

                                                                                                                    SAY NO TO PROVERTY 

Proverty in india is widespread and a variety of methods have been proposed to measure it....

The official measure of Indian Goverment.......And it can be resloved 
by 


Microfinance!!!What is it????
  • Microfinance refers to an array of financial services, including loans, savings and insurance, available to poor entrepreneurs..........
  • Small business owners who have no collateral and wouldn't otherwise qualify for a standard bank loan.........

Main Aims of Microfinance:
  • Range of financial services......
  • Group and individual lending......
  • Profitable activity......

How Microfinance works:





Sectors Covered By Microfinance:
  • Micro-credit......
  • Group lending..........
  • Social or Charitable activity.......


## Challenges and Opportunities ##
  • There are over 10,000 microfinance institutions serving in excess of 150m customers,                  100m of them being the poorest families................
  • Global demand is estimated at 500m families, so there is a long way to go............
  • 250 of the largest MFIs are able to access capital on a fully commercial basis from investors like Citibank...............
  • Microfinance, if there is any doubt, has become big business.............

@Sustainability@
                                                                                                                                                              “No one ever ended poverty by going bankrupt”  

  •  Many Organisations have proven that it is possible to serve the poor successfully while                   maintaining sustainability..................
  •  Profit is sometimes a problematic word for the industry.................

$$$IMPACT$$$

  •  There are worrying examples of organisations like SKS (India) and Compartamos (Mexico) undergoing IPOs that greatly enrich their staff and put the organisations on a solid trajectory away from pro-development lending.....................
         Focus on the Poor:
.“There is a need for Parliamentary and DFID scrutiny to ensure the government is pressured to protect the interests of the poor and not the banks.”
.Nowhere was this more clear than in the APPG meeting last year to discuss the development of the joint DFID-World Bank Microfinance Capacity Building Fund for Africa.

Micro-Credits & Micro-Banks


$$$$CREDITS$$$$
•        The Grameen transactions take place at the village level, usually in a local hall or  temple.
     The borrowers will use a loan to buy tools and equipment to set up on their own.
                                           BANKS
Banks lend money to individual entrepreneurs in groups of five, each member being responsible for their own loans before any one individual can re-apply for the next level of funding.
 They use each other as collateral for their loans.
This proven method has boasted over a 95% success rate in repayment and flourishing businesses. 



*MICROFINANCE  MAINLY TARGETS WOMAN!!!!!
BUT
  WHY?????
  • One billion people in the world are illiterate and two thirds of those  people are women.


Web Based Microfinancing


CELLPHONES

• In poorer nations phones have help open up microfinancing.
In Dev. Countries where bank branches and ATM are few/nonexistent,
cell phones make the       financial services practical.
Cell phones have the potential to take financial markets outside the urban 
areas.
INTERNET
With $$$$ transfer one can do anything to help the poor and support the economy. 

Microfinancing Creates Jobs

How???



Main Role Played
By
Muhammad   Yunus
Muhammad Yunus:
  • Yunus is the 1st Nobel Prize winner from Bangladesh....
  • Founder of Grameen (Rural) Bank in 1976
    •     Started micro financing by giving out  a loan of $27 to 42 women in a village in Bangladesh.

                    -Conclusions-

      • We need to win the battle to ensure focus is kept on providing financial services to the poor as a tool to assist them in their escape from poverty.

      • We need to ensure we are creating and supporting innovation around technology and new product lines in microsavings and microinsurance.



      THANK YOU!!

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