Micro Finance

Table of Content • • • • • •

Micro Finance An Introduction A profile of Rural India Services offered by MFI Role & Benefits Micro Financial Institutions Micro Financial Institution working in India

Introduction to Micro finance Financial services given to poor & low Income people (including women) of Rural Areas to raise their standard of living & can make them economically sound. • In 1934 RBI establish Agricultural Credit Department. • Regional Rural Banks created in 1975. • NABARD established as an apex agency for rural finance in 1982.

A Profile of Rural India • • • • • • •

350 million Below Poverty Line 95 % have no access to microfinance. 56 % people still borrow from informal sources. 70 % don't have any deposit account. 87 % no access to credit from formal sources. Annual credit demand is about Rs.70,000 crores. 95 % of the households are without any kind of insurance. • Informally Microfinance has been in practice for ages.

Services offered in Micro Finance • • • •

Loan Deposits Insurance Pensions

Role & Benefits • • • • • • • •

Targeting the poor Poverty Reduction through Social Protection Women’s empowerment Widening of social capital Business development Services Other development services Insurance services Pension services

Micro Financial Institutions Any institution that provide financial services to the poor, it includes:• Co-operatives • Financial NGO • Credit Unions • Commercial Bank • Post Offices • Insurance Companies etc

MFI’s working in India • • • • •

NABARD SIDBI Cashpor Grameen koota Various amalgamation of SBI, BOB, BOI, PNB, UCO, Axis, Syndicate etc • LIC, GIC, ICICI Lombard & many more

Questions any

if

Thank

you