The Indian government is planning to reintroduce a microfinance bill to Parliament that would significantly impact the regulation of the rapidly growing microfinance industry, which has reportedly been growing at almost 52 percent per year for the last three years in terms of client outreach.
SBI Mutual Fund has launched an equity-based micro-systematic investment plan, called SBI Chota-SIP. The plan, which aimed at low-income households, allows a person to invest in mutual funds with a minimum sum of Rs 100 a month.
India’s Microfinance institutions reached 76.6 million against last year’s 59 million, according to the “State of the Sector Report” released on Monday in New Delhi.Compiled by N. Srinivasan, the report was released as part of the annual Microfinance India Summit 2009.
From the global funders, there was a steady flow of funds though the investment cycles turned a little longer due to credit crisis. India Financial Inclusion Fund (IFIF), an off-shore India-focused equity fund for microfinance companies and enablers, has achieved a final close of $90 million.
The year 2009 may go down as the watershed year for the Indian microfinance industry. Marked by strong growth and pioneering deals the industry is riding high, growing at a rapid pace of 100%-200% year-on-year
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The positive impact of Microfinance on the lives of the poor is an accredited reality. Yet there is a long way to go before breaching the gap between the demand for Microfinance services and the supply. Credible Microfinance Pvt. Ltd established to meet the huge, unmet demand for financial services to rural mass by providing microfinance services to SHGs In different parts of Orissa. Credible Microfinance Private Limited was established to give poor women the opportunity to earn a living. The only other option available for women to start their own business or meet up their financial need is to pay the extortionate rates to money lender. Credible Microfinance Private Limited extended the credit facilities to its clients (Members of SHGs) with negligible rate of interest in comparison with local money lenders. With this service the poor women meet their credit need in time and also not depended on the local market where money lender exploited them for a long period. Through Credible Microfinance Pvt Ltd’s loan assistance the poor clients have also generated their income and improved their living standard. VISION: 1. To cater to the financial needs of one million customers by year 2012 by providing them a range of innovative financial solutions and professional guidance. 2. To be the most preferred rural based organization for the • Investors to invest. • Customers to access financial services. • Talents to work. • Community to trust upon. MISION: Our mission is to empower the “economically active poorer section of the society”, by providing them a range of financial services in a competitive rate and in a sustainable basis, customized to their need and guiding them to become micro-entrepreneur. By doing so our endeavor would be to pass on maximum value to all our stakeholders.
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The World Microfinance Forum Geneva organized a full day workshop for managers responsible for micro and small loan portfolios. Selected financial institutions from a developed country (Switzerland) and a developing country (Bolivia) presented their respective lending methodologies, and a moderator facilitated an exchange of experiences.
Third World (TW) development is now half a century old and coincides with a period of substantial Northern economic aid to the economies of Third World countries. Despite this assistance, TW poverty continues. This situation has been caused by several critical factors, yet current literature mainly blames the orthodox development approach, which fosters channeling foreign aid and loans through state and para-state agencies.
Nearly three billion people in developing countries have little or no access to formal financial services that can help them increase their incomes and improve their lives. Access to a range of microfinance services—savings, loans, and money transfers—enables poor families to invest in enterprises, better nutrition, improved living conditions, and the health and education of their children. It is also a powerful catalyst for women’s empowerment.