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	* Effective interest rates at around 20-30%		* Effective interest rates at around 20-30%
	* Weekly meetings with deposits of around Rs 5-25/week		* Weekly meetings with deposits of around Rs 5-25/week
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		+	==Individual Banking==
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		+	* Individual clients receive loans on conditions of minimum savings deposit
		+	* Loans to both poor and non poor, with flexible savings deposits, at effective interest rates of 20-35%
		+	*

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Revision as of 14:26, 12 February 2007

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Contents 1 Microfinance Models in India 1.1 Self Help Groups 1.2 Grameen replicators 1.3 Individual Banking

Microfinance Models in India

Self Help Groups

• 10-20 member groups (mostly women), from poor (Below Poverty Line (BPL)) sections
• Service focus is on savings and credit
• The groups loans to members from their own savings, external loans are taken from banks, where the group is jointly liable
• Interest rates comprose of bank rates (usually 5-10%), plus a profit share. The effective interest is around 20% (too high?). The initial loans size is around Rs 5000-10000
• Monthly meetings to discuss outstanding issues. Monthly saving deposits at around Rs 20-100/month. (Expand on this)

Grameen replicators

• 5-10 members each (mostly women), coming together for taking a joint loan from MFIs, assuming joint liability
• Focus on regular cycle credit for starting a microenterprise
• Effective interest rates at around 20-30%
• Weekly meetings with deposits of around Rs 5-25/week

Individual Banking

• Individual clients receive loans on conditions of minimum savings deposit
• Loans to both poor and non poor, with flexible savings deposits, at effective interest rates of 20-35%