47366647 Micro Finance Ppt

8/7/2019 47366647 Micro Finance Ppt

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MICROFINANCE

Presented By

Sangeetha.S

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Microfinance

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Provision of financial services to low

income clients

Loans Savings Insurance Remittance


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Microfinance Services Regulation Bill

Definition of Microfinance

Providing financial assistance to an individual or an eligible client,

either directly or through a group mechanism for:

An amount, not exceeding Rs.50,000 in aggregate per individual, for

small and tiny enterprise, agriculture, allied activities (including for

consumption purposes of such individual) or

An amount not exceeding Rs.1,50,000 in aggregate per

individual for housing purposes

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Type of entity Non-profit Mutual benefit For-profit

Association Society under Societies

Registration Act 1860

Eg: SAMRUDHI Micro

Fin Society in

Karnataka

Cooperative which can

be just a savings and

credit cooperative or be

further licensed as

cooperative bank

Association of

persons

Trust under

Indian

Trusts Act 1920

Charitable trust

Eg:Mahasemam Trust

in Tamil Nadu

Mutual benefit trust Investment trusts

Company under

Indian

Companies Act,

1956

Section 25 Company

Eg: Cashpor in UP

Mutual Benefit (Sec

620A Nidhi Company)

Company which is

further either an

NBFC or a bank

Eg:Share

Microfinance in AP

Forms of MFI


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State Maharashtra

No.of MFI's HO in the state 18No.of MFI's HO & Branches 28

Client Outreach 1169306

Portfolio Outstanding 3840548354

No. of districts served 38

Out of which no. of poorest

districts 18


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3226

23 2118 18

14 13 117

0

5

10

15

20

25

30

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No. of MFI Head Office in State

No. of MFI


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Outstanding Portfolio (in Rs. Crore) FY 2007 FY 2008

SBLP* 10,644 16,900

Sa-Dhan, 223 MFIs 3,456 5,954

Total** 13,582 21,961

Client Outreach (in million persons)

SBLP* 16.01 21.57

Sa-Dhan, 223 MFIs 10.04 14.1

Total** 24.55 33.55

In the financial year 2007/08, Microfinance in India through its

two major channels SHG-Bank Linkage Programme (SBLP)

and MFIs served over33 million Indians

Service Volumes

Bharat Microfinance Report - Quick-Data 2008


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Self-Help Group (SHG)

A Self-Help Group (SHG) is a registered or

unregistered group of 10-20 individuals havingHomogenous social and economic background

To save small amounts regularly

To mutually agree to contribute

To a common fund andTo meet their emergency needs on mutual help basis.


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Joint Liability Group(JLGs)

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Internal

Auditor

GENERAL ORGONOGRAM OF AN MFI


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Branch Identification And Set Up

The area in consideration should have :

1. Proximity to the targeted villages

2. Availability of public transportation for staff

3. Proximity to bus stand, market place etc.4. Easy access to local commercial banks

5. The availability of telephone and internet facility

6. Availability of proper building for the branch office

7. The distance and means of transportation to theHead Office

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Branch Staffing Structure

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Registers and displays to be kept

in Branch Office

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SlNo Name of the Register Description

1 Master Register Master Register contains the details of allmember/group registered with SMFL. Onregistration of new group/member or on

dropping off the details of the group/memberis entered in the Master Register.

2 LAAD Index Register(Loan Application

Agreements andDocuments )

LAAD Index Register contains the details ofthe Loan ApplicationAgreements andDocuments kept in the branch. This is usedfor the easy reference of LAAD in future.

3 Proposal Cum Disbursementregister

Proposal cum disbursement register is usedto track the status of loan request generatedin the branch till its disbursement.

4 Loan Committee Minutes Loan committee minutes contain the detailsof loan sanctioned/rejected during thedeliberations in the Loan Committee

Meeting.


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5 Inspection Register Inspection Register containscomments/recommendations made by any seniorofficer of SMFL during his/her visit to the branch.

6 Cash Book Cash book documents both cash receipts anddisbursements.

7 Ledger Abook of accounts, in which the results of business

are arranged under various heads as described inthe Heads of accounts

8 Asset Register Asset Register is a record of items consideredworthy of identification as discrete assets. Aphysical asset register includes information abouteach asset, such as purchase cost, date of purchase

etc.

9 Stock Register Stock Register is a record of items stored in thebranch for distribution free or for cash like PassBook, GroupAccount Books, Loan Application,Agreement and Documentation and other printedmaterials.

Sl No Name of the Register Description


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10 Attendance Register Branch Manager should manage anattendance book for the staff reporting tohim.

11 Movement Register Movement Register is used to track the staffmovement. Staff leaving out for any officialpurpose has to declare the time andpurpose

12 Inward OutwardRegister

Details of all in-coming and out-goingletters and e-mails are to be numbered and

entered in this register.

13 Receipt BookTracking Register

Details of receipt book issue are recorded inthis register

Sl No Name of the Register Description


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Self Help Group

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CLIENTIDENTIFICATION


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Basic Characteristics of Clients

Low & middle income group from the neighbourhood

Members should be women

Age bracket of 18 years to 55 years

No two women from same house hold can havemembership in same group

Group should have 10 to 15 members

Involved in a variety of income generation activities

Average house hold income of Rs. 1500 to Rs. 12000/- per month.

Illiterate/ semiliterate people

Un-banked segment

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Possible client Needs

Enterprise needs mainly fordevelopment, diversification and expansion of

business

Health and education

Debt Redemption

Basic household consumption

Emergency Needs

Meeting housing needs - mainly for building /repairing of houses

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PR

O

C

E

SS


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1. Group Formation:21


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Promotional Meeting

Following topics are covered on day-1

About the MFI and its activitiesMembership requirements

Goals of the group

Group Recognition Test (GRT)

Group registration procedures Loan product details, loan documentation and

its repayment

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Following topics are covered on day- 2

Importance of the meeting

Meeting Procedure

Roles andResponsibilities of the group members andgroup leaders.

Books to be maintained in the group

Attendance Book

Individual Savings Card

Group Savings Card

Individual Loan Card

Group Loan Card

Loan Documentations

Promissory Note Group

Promissory Note Individual

Inter-seAgreement

GroupDeclaration

FacilityAgreement

Group Receipt

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Immediately After The GRT, The

Following Documents Are Collected1. Registration Form -Along with Photos,ID Proof

The Field officer along with the members fill the reg.Form

and admission fee2. After collecting the fee ,spot receipt is given3. Bye-laws are given-Group undertaking the

responsibility4. Seal to be made5. Individual pass books and a Sangam pass book6. Sangam savings cum loan register7. Minutes Book-(Fills during meeting days and

important in case of loan )

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2. Loan Application Process

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The following documents are collectedalong with the application form

1. Loan application-both Sangam & individual

2. Loan Requisition Sheet3. Interse agreement

4. Photo along with ID proof

5. Self Declaration

6. Minutes copy of the Sangam7. In case of 2nd loan cycle-Grading sheet is submitted

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GROUP Loan

Loan Amount

(Product)

Cycle Loan Limit (Per member) InstalmentsLoan

Tenure

1st Loan Cycle Maximum Rs. 8,000 50 Instalments 12 months

2nd Loan Cycle Maximum Rs, 12,000 50 Instalments 12 months

3rd Loan Cycle Maximum Rs. 15,000 50 Instalments 12 months

4th Loan Cycle Graduates to Individual loan product

Note:

y Loans will be given in multiples of thousands only.

y The figures given against each cycle are the maximum that can be availed

y Loan amount will be sanctioned based on the members income generation

activity and the repayment capacity.

Price

Interest Rate 15% per annum on a declining basis

Processing Fee 1% of loan amount collected upfront

Risk Fund 1% of loan amount collected upfront

Penalty

1% on the due amount (instalment)

for the number of days for which the

amount was due


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3.Loan Disbursement

Process

Accountant fills the paymentvoucher

Accountant collects 3%service charge along with 1%

insurance coverage fee

Gives receipt

Signs the Demand PromisoryDelivery Letter

Loan disbursement Report isfilled by the C.O. and verified

by BM

Loan disbursement report andVouchers and Fund Transfer

Notes (FTN) are sent to the H.O

Verification in Head Office

Submits consolidated reportto the Operations Head

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4.Loan Repayment Process

Repayment begins within 11 days after disbursement

Loan duration-50 weeks/12 Months

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C.O. Fills

FCDCR

Sangam loan cumsavings register

Spot receipt

C.O. Also fills thesangam passbook

and checks the

sangam minutes

FCDCR is dulyfilled ,BM verifies

and signs

Branch accountantcollect the cashfrom the C.O. And

fills the DCS

The accountantfills the FTN

DCS ,FTN &FCDCR sent to

H.O

H.O.Accountantverifies cash


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THANK YOU !

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