Good Evening
Akash Gupta
presentation by
Microfinance
Microfinance
Financial service for poor and low income clients
Loans , Mortgage
and other services
Micro-finance Institutions
Grameen Bank Utkarsh(U.P. , Bihar)
Microfinance
For Individuals
relationship-based banking
for
small business,
individual entrepreneurs
For Groups
group-based models
to apply for
loans and services
as a group
Microfinance institutions(MFI's)
Grameen Bank
Originated in 1976
Introduced by Muhammad Yunus
Serving 7 million Bangladeshi people
Bandhan Bank
Originated in 2001
Capital base of 2570 Crores INR
Globally 2nd largest Institution (Indian)
History
Lysander Spooner
mid 1800's
Small credits to Entrepreneurs and Farmers
Friedrich Wilhelm
1864
First Cooperative lending Bank of Germany
Muhammad Yunus
Grameen Bank, Bangladesh Nobel Peace Prize laureate
National Bank for Agriculture and Rural Development
Loan without Security
maximum amount of Rs 25,000
Debate
Proposition
Reduces Poverty
Increases Employment and Income
Improved Nutrition and Education
Empowerment of Women Society
Opposition
Critics: no change in Income
Debt trap
Health and Education not improved
No loan Security led to higher Interest Rates
Debate is still Inconclusive
MFI growth in india
Due to high population density and poverty ratio of India,
MFI's have always seen great growth with growing
awareness about the Services
MFI growth in Bangladesh
MFI's in Bangladesh will exist or not is decided by the
development. Even constant growth can put MFI's in debt.
Yet banks have grown quite well.
“poor people are the world's greatest entrepreneurs. Every day, they must innovate in order to survive. They remain poor because they do not have the opportunities to turn their creativity into sustainable income.”
Great Change takes Great Courage
-Muhammad Yunus
Thank You
Copy of Microfinance
By Akash Gupta
