MFImodels
From Udaimicrofin
(Difference between revisions)
| Line 22: | Line 22: | ||
* Individual clients receive loans on conditions of minimum savings deposit | * 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% | * Loans to both poor and non poor, with flexible savings deposits, at effective interest rates of 20-35% | ||
| - | * | + | |
| + | |||
| + | =Self Help Groups= | ||
| + | |||
| + | ==Role of SHGs in Community== | ||
| + | * Politics: Members regularly run for office in village and local panchayats | ||
| + | * Society: Most SHGs are affinity groups, similar castes or religions. One third of SHGs are multicultural, mostly NGO promoted groups | ||
| + | * Social justice: A few incidents of domestic and sexual violence | ||
| + | * Community Action: 30% SHGs involved in community action, infrastructure improvement, stopping alcohol sale etc. | ||
| + | |||
| + | |||
| + | =Sustainability= | ||
| + | Many SHGs do not keep proper records of their saving and transactions, making it harder to assess the impact of the MFI and involvement. This is partly a problem of the MFI volunteers and partly due to the SHGs themselves. Paid office bearers tend to keep better records. Also since mostSHG members are poorly educated, this increases the problem of accurate and regular book-keeping. Computerisation of records has helped to some extent, but still a lot of hand holding is required by the MFI volunteers and administrative people. | ||
Revision as of 03:07, 15 February 2007
Contents |
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%
Self Help Groups
Role of SHGs in Community
- Politics: Members regularly run for office in village and local panchayats
- Society: Most SHGs are affinity groups, similar castes or religions. One third of SHGs are multicultural, mostly NGO promoted groups
- Social justice: A few incidents of domestic and sexual violence
- Community Action: 30% SHGs involved in community action, infrastructure improvement, stopping alcohol sale etc.
Sustainability
Many SHGs do not keep proper records of their saving and transactions, making it harder to assess the impact of the MFI and involvement. This is partly a problem of the MFI volunteers and partly due to the SHGs themselves. Paid office bearers tend to keep better records. Also since mostSHG members are poorly educated, this increases the problem of accurate and regular book-keeping. Computerisation of records has helped to some extent, but still a lot of hand holding is required by the MFI volunteers and administrative people.
