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Class. Presentation. Micro Finance – In India. D a t e : [ 08 h August. 2011 ]. V e n u e : [H.L. Professional]. Index. Definition. Micro-finance refers to small savings, credit and insurance services extended to socially and economically disadvantaged segments of society.

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  1. Class Presentation Micro Finance – In India D a t e : [08hAugust. 2011] V e n u e : [H.L. Professional]

  2. Index

  3. Definition Micro-finance refers to small savings, credit and insurance services extended to socially and economically disadvantaged segments of society. In the Indian context terms like "small and marginal farmers", " rural artisans" and "economically weaker sections" have been used to broadly define micro-finance customers. At present, a large part of micro finance activity is confined to credit only. Women constitute a vast majority of users of micro-credit and savings services.

  4. Definition

  5. Need for Micro Finance Credit on reasonable terms to the poor can bring about a significant reduction in poverty. It is with this hypothesis, micro credit assumes significance in the Indian context. With globalization and liberalization of the economy, opportunities for the unskilled and the illiterate are not increasing fast enough, as compared to the rest of the economy. It is in this context, the institutions involved in micro finance have a significant role to play to reduce this disparity and lead to more equitable growth.

  6. Need for Micro Finance Why Microfinance Can Change the Way the World Woks

  7. Concept • The core product of Microfinance is microcredit: an extremely small loan to purchase productive assets boosting the poor’s revenue allowing repayment over a short period of time in small installments without the guarantee of collateral. • The size of the loan is small in three dimensions: • In absolute monetary values , as compared to typical business loan so as to operate in a segment where there is no banking competition; • in relation to the borrower’s income, so that payback is easier, • in respect to the lender’s portfolio, so that the default of any single borrower has no impact on its financial soundness.

  8. Objectives • Microfinance offers financial services to underprivileged people. • Encourage Entrepreneurship and Self-Sufficiency. • Manage Risk • Empower Women

  9. Major Players in Rural Market

  10. Micro Finance Models

  11. Developments in MF

  12. Pillars of Microfinance in India

  13. Financing Model in MF Industry

  14. Lending Process in MF

  15. Challenges in MF

  16. Challenges in MF

  17. Challenges in MF

  18. Conclusion With some effort substantial progress can be made in taking MFIs to the next orbit of significance and sustainability. This needs innovative and forward-looking policies, based on the ground realities of successful MFIs. This, combined with a commercial approach from the MFIs in making microfinance financially sustainable, will make this sector vibrant and help achieve its single minded mission of providing financial services to the poor

  19. Thank You

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