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