MICROFINANCE

TABLE OF CONTENTS
INTRODUCTION. GOALS OF MICROFINANCE. MF-INDIAN SCENARIO MODELS OF MICROFINANCE. SWOT ANALYSIS. CONCLUSION. REFRENCES.

What is Microfinance? Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services. What led to Microfinance? Mismatch between what people want and what they got.

NATURE OF DEMAND Flexibility in timing. Timely availability of services. Low value and high volume of transactions Require simple process with minimum documentation

NATURE OF SUPPLY High cost of service delivery. Timings and procedurerigid and inflexible. High transaction cost for the customers. Long process requiring a lot of documentation.

GOALS OF MICROFINANCE
Eradicate extreme poverty. Achieve universal education. Promote gender equality and women empowerment. Reduce child Mortality. Combat diseases Developing entrepreneurial Spirit.

MF- INDIA
INDIAN POPULATION DIVIDED INTO APL AND BPL

24% BELOW POVERTY LINE ABOVE POVERTY LINE 76%

MF- INDIA
% OF SECTION SERVED BY MF

5% URBAN CLASS POOR 35% 60% POOR ULTRA POOR

Only 5% of Ultra Poor Population have been reached!!

MF PENERATION IN INDIAN STATES

TOP MFIS OF INDIA

MODELS OF MF.
GRAMEEN BANK MODEL
Group 1 Group 2

MFI

Group 3

Group 4

MODELS OF MF.
SELF-HELP GROUP MODEL

Members Bank

SHG

SWOT ANALYSIS
STRENGTHS:
Helped in reducing the poverty. Huge networking available. Social empowerment. Convenient

WEAKNESS:
Not properly regulated. High no of peoples access to informal sources. Concentrated only on few regions. Borrowed sum used for daily expenditure than for business.

OPPORTUNITIES:
Huge demand and supply gap. Employment opportunity. Huge untapped market. Opportunity for private banks.

THREATS:
High competition. Neophyte industry. Over-involvement of government.

CONCLUSION
Micro Finance Institutions (MFIs) had emerged as an important means to financial inclusion. Services Offered-loans,insurance,savings and pensions. SHG- popular model of MF in India. Better regulations needed to fully utilize the potential of MF in India. Huge untapped target is still out of reach.

I did something that challenged the banking world. Conventional banks look for the rich; we look for the absolutely poor. All people are entrepreneurs, but many don't have the opportunity to find that out.
-MUHAMMAD YUNUS. (Founder of Grameen Bank, 2006 Nobel Laureate)

REFERNCES
http://www.mixmarket.org/mfi/country/India http://www.microfinanceindia.org/ http://en.wikipedia.org/wiki/Microfinance http://www.google.com http://www.grameenfoundation.org/asia/india

Any Questions???????