Micro Finance A Solution To Reduce Poverty

1
Micro Finance A Solution To Reduce Poverty

• The Poor is not considered as Bankable
• The Mainstream Banks and Financial Institutions
  have their own limitations
• The poor does not have any collateral to
  establish his Net Worth
• The Poor does not take any interest for saving
• Depends upon the local money lender and traders
  for his credit needs who not only charges high
  rate of interest , but take advantage

2
The Need of Micro Finance Institutions

• Mobilization of the Poor People and have direct
  contact with one to one
• Provide door Step Service
• Educate the poor for thrift and savings
• Provide Loan at the time of need
• Less Cost of Operation for MFIs
• Provide guidance for income generation activity
  and sustainable food security
• Small Money makes big impact by changing the life
  of people

3
The Indian Condition- Opportunities

• A stable political situation
• Government of India supports for the sector in
  form of Grants and subsidized rate of interest
  through NABARD ,SIDBI, RMK, NMDFC and other
  Agencies
• Involvement of Scheduled Commercial Banks ,both
  directly and indirectly by financing the MFIs
• Regular Guidance by Reserve Bank of India
• Besides Government of India, direct involvement
  and support of different state Governments like
  Mission Shakti in Orissa
• A very supportive guideline by Reserve Bank of
  India for External Commercial Borrowing to the
  extent of US500 Million by Not for Profit MFIs

4
The Indian Condition- Need

• The Micro Finance Sector Need Funds at a
  comparatively low rate of Interest
• The Present rate of Interest where public as well
  as private sector banks provides fund is around
  14Per Annum
• The MFIs need at least 6-8 gap
• Most of the MFIs also need technical assistance
  and capacity building support
• There is vast client base which can be financed
  through micro finance which can act in a manner
  to bring down the impact of recession across the
  globe by enhancing commercial and productive
  activities

5
Credible Micro Finance Private Limited- An
Overview

• Promoted by Mr.Khirod Chandra Malick, Chairman
  ,BISWA as well as An eminent Ex-Banker with 26
  years of Banking Experience from State Bank of
  India
• Have the large base of quality clients in the
  form of Self Help Groups promoted by BISWA
• Have Professional staff with long experience in
  Micro Finance
• Investment in equity by International Agencies
  like Bellwether
• Major finance to Agriculture, Rural Artisans
  ,small business and Weavers
• 100 Women Clients
• PAR gt 30 days at 0
• 100 repayment
• Present Loan Portfolio as on 31st March2009
  US6.5 Million
• Needs Debt fund for increasing its Portfolio