MFImodels
From Udaimicrofin
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* The groups loans to members from their own savings, external loans are taken from banks, where the group is jointly liable | * 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 | * 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 meetings to discuss outstanding issues. Monthly saving deposits at around Rs 20-100/month. ('''Expand on this''') |
==Grameen replicators== | ==Grameen replicators== | ||
Revision as of 14:16, 12 February 2007
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), 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
