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)

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