Microfinance
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Transcript of Microfinance
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MentorMR. PARTHA CHATTERJEEFaculty of Management
Presented By Santanu GhoshMBA 2ND Year
Microfinance Changes Demanded
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What is Microfinance?Microfinance is a general term to describe financial services to low-income groups including, self employed or to those who do not have access to typical banking services.
Services
Micro Credit Micro InsuranceSavings
Fund Transfer
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Facts File about MFIs Company
Services available at rural areas of a country
Interest rate charged between 15% to 36%.
Loan amount varies from Rs.5000-Rs.30000
More than 1000 company operating.
Installment is paid weekly with interest.
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Legal forms of MFIs NGO MFIs – Registered under Societies Registration
Act, 1860 and / or Indian Trust Act, 1882
Cooperative MFIs – Registered under State Cooperative Societies Act or Mutually
Aided Cooperative Societies Act (MACS) or Multi- State Coop. Societies Act, 2002
NBFC MFIs incorporated under Section 25 of Companies Act, 1956 (not for profit)
NBFC MFIs incorporated under Companies Act, 1956 & registered with RBI
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What is Micro Credit
Microcredit can be defined as the provision of credit services to poor clients.
Objectives of Micro Credit
Alleviation of Poverty
Empowerment of women
Income Generation
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Interest Profits
Company Name 2007-08 2009-10
SKS Microfinance 170.1 958.92
Bandhan 6.56 222.11
BSS 7.03 155.38
Share microfinance 113.08 475.27
Grameen FS 82.65 327.35
Spandana Spoorthy
127.45 724.09
Ujjivan 36.37 372.89
Rs in Crores
As published in Dainik Jagran
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2007-08 2008-09 2009-10
Rs 8.06 6.25 22.55
2.5
7.5
12.5
17.5
22.5
Revolving Fund Assistance to MFIs
Rs(i
n c
rore
s)
Source: NABARD
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2003 2004 2005 2006 2007 2008 2009 2010
UNEMPLOY-MENT RATE
8.8 9.5 9.2 8.9 7.8 7.2 6.8 10.7
1
5
9
UNEMPLOYMENT RATE
Perc
en
tag
e
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Question
Why they need so much of profit?
Whether they are able stop suicide among the farmers ?
Why interest rate of microfinance company is so high?
Is they are restricted to their objective?
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Recommendation
Interest rate should be regularize by RBI or NABARD.
Interest rate should be minimized.
MFIs should check whether there money properly used for the purpose loan is taken.
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Thank You