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.......
- 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
$$$$CREDITS$$$$
• The Grameen transactions take place at the village
level, usually in a local hall or
temple.
• The borrowers will use a loan to buy tools and equipment to
set up on their own.
BANKS
• Banks lend money to individual entrepreneurs in groups of
five, each member being responsible for their own loans before any one
individual can re-apply for the next level of funding.
• They use each other as collateral for their loans.
• This proven method has boasted over a 95% success rate in
repayment and flourishing businesses.
*MICROFINANCE MAINLY TARGETS WOMAN!!!!!
BUT
WHY?????
- One billion people in the world are illiterate and two thirds of those people are women.
Web Based Microfinancing
CELLPHONES
• In poorer nations
phones have help open up microfinancing.
• In Dev.
Countries where bank branches and ATM are few/nonexistent,
cell phones make the financial services
practical.
•Cell phones have the
potential to take financial markets outside the urban
areas.
INTERNET
• With
$$$$ transfer one can do anything to help the poor and support the economy.
-
Yunus is the 1st Nobel Prize winner from Bangladesh....
-
Founder of Grameen
(Rural) Bank in 1976
-
-
Started micro financing by giving out a loan of $27 to 42 women in a village in
Bangladesh.
-Conclusions-
-
We need to win the
battle to ensure focus is kept on providing financial services to the poor as a
tool to assist them in their escape from poverty.
-
We need to ensure we
are creating and supporting innovation around technology and new product lines
in microsavings and microinsurance.
THANK YOU!!
• In poorer nations
phones have help open up microfinancing.
• In Dev.
Countries where bank branches and ATM are few/nonexistent,
cell phones make the financial services
practical.
•Cell phones have the
potential to take financial markets outside the urban
areas.
INTERNET
• With
$$$$ transfer one can do anything to help the poor and support the economy.
- 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.
- 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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