empowerment of rural poor women through micro-finance
TRANSCRIPT
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EMPOWERMENT OF RURAL POOR
WOMEN THROUGH MICRO-FINANCE
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Micro Finance
It is a basis financial services:-
Small loans, saving accounts, fund transfers and
insurance.
Alongside non-financial services such as business
training.
Micro finance assists people living in the
poverty.
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Microfinance Origins
Evolution of Microfinance 1900s
Concept of Microfinance is not new; savings and credit groups have operated forcenturies Susus in Ghana, Chit funds in India, Tandas in Mexico,Arisan in Indonesia, Cheetu in
Sri Lanka, Tontines in West Africa,Pasanaku in Bolivia
Subsidised Credit
Focused on agriculturalcredit through state-owneddevelopment financeinstitutions
Rural development bankssuffered massive erosionof capital base due tosubsidised lending rates &poor repayment discipline
ExperimentalProgrammes
Bangladesh, Braziland few other countries
Based on solidarity
group lendingprimarily women
Focus on credit forincome generationactivities
CommercialApproach
High repayment rateand cost-recoveryinterest rates
Demonstrated thatpoor were willing andable to pay interest ratesthat allowed MFIs torecover costs
Broadening ofOfferings
Micro-creditreplaced byMicrofinance to
include not onlycredit but alsosavings and otherfinancial servicessuch as insurance andmoney transfers
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1992 NABARD conducts pilot project
refinancing SHG programmes
1996 Encouraged by the above pilotproject, the govt. appoints the workinggroup made importantrecommendations including inclusion inthe priority sector list.
1999 A task force on NBFCs maderecommendations on microfinance
2000 The RBI announces broadguidelines to banks on microfinance inits credit & monetary policy
2002 Informal Group set up to suggestto the govt. on microfinance
2005 Khan Report (RBI) on policyoptions, development and regulatory
issues
Microfinance in IndiaMilestones
Recent Developments
Microfinance Development & EquityFund increased from Rs. 100 cr to Rs.200 cr.
ECBs upto USD 5 million allowed forMFIs (meeting certain criteria)
Exim Bank ties up with a number ofNGO/MFIs for funding/promotingcluster projects
New equity funds for microfinanceindustry Lok Capital, Bellwether, &
Aavishkar fund
RBI guidelines on MFIs as bankingcorrespondents
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Impact of Microfinance
Poor , participating in microfinanceprogrammes are able to improve theirwell-being at both individual andhousehold level
Poor households with access to financialservices not only send their children toschool but also allow them to stay inschool longer
Access to financial services and resultanttransfer of financial resources to women,over time, lead to women becoming moreconfident, assertive and better able toconfront systemic gender inequities
Impact of Microfinance
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Microfinance Vision
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Assistingpoverty
alleviation
Micro-enterpriseDevelopment Services
De-centralizedTechnology innovations
Direct CreditPrograms
Savings / Insuranceand other financial
services
Supportingentrepreneurship
Promoting micro-equityfunding models
Enabling socio-economic,
environmental,grassroots
development
Fosteringfinancial
inclusivity,empowerment
Augmentingsustainable
livelihoods
Holistic FinancialSolutions to shrinkthe Bottom of the
Pyramid
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It works in synergy with other development
interventions, like those that promote, health, education, nutrition,and offers an empowering hand up, not a hand out.
Microfinance is an intervention capable of producing a quadruple bottom line:
Relieve suffering
1. Bring dignity
2. Become sustainable
3. Inspire supporters
- Microcredit Summit Campaign report 2006
Why Microfinance?
VisionFund is the microfinance subsidiary of World Vision
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Empowerment
It is a process of change
Gain power and ability to take control over
their life.
Involves access to resource and increase in
participation in decision making and
bargaining power.
Increased controlled over benefits, resources,
self confidence, self- esteem, self- respect.
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Women Empowerment
Refers to increasing the spiritual, political,
social or economical strength
Decision-making power
Positive thinking on the ability to make thechange.
Change others perceptions by democratic
means. Increasing ones self- image and overcoming
stigma.
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Rural women empowerment through
micro-finance
Role of NABARD
Micro-Finance and Empowerment of women
Entrepreneurship development among ruralwomen through micro-credit.
Role of self help groups.
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Investing for ImpactInvest Impact
Transform
Every small loanpromises big returnswhen invested in thepassion of the
enterprising rural Poorwomen.
Work means dignity forparents, food, health careand education for their
children and jobs, futureand empowerment for ruralPoor women.
Small loans can energizecommunities to movebeyond poverty. Buttransformation comeswhen all the causes ofpoverty are tackledtogether.
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Impact of micro-finance on rural women
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Conclusion
Microfinance is emerging as a powerful instrument for poverty
alleviation in the new economy. In India, Microfinance scene isdominated by Self Help Group (SHGs)-Bank Linkage Programme as
a cost effective mechanism for providing financial services to the
Unreached Poor which has been successful not only in meeting
financial needs of the rural poor women but also strengthen
collective self help capacities of the poor ,leading to their
empowerment.
Economic empowerment results in womens ability to
influence or make decision, increased self confidence, better
status and role in household etc. Micro finance is necessary toovercome exploitation, create confidence for economic self
reliance and empower the rural poor women
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Any Questions???
Thank You