STATES COVERED BY BAIF PROGRAMME

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3 STATES COVERED BY BAIF PROGRAMME Spread of the program Families covered 2.5 million Villages States covered 12 Extension centers 1600 Existing Proposed

4 FEATURES OF THE AREA COVERED AGRICULTURE AS SOURCE OF LIVING SMALL LAND HOLDING PER FAMILY RAIN FED AGRICULTURE SYSTEMS MIGRATION FOR LIVELIHOOD AVERAGE FAMILY SIZE - 5 LITERACY RATE 60% LESS IN WOMEN CONSTRAINTS IN ACCESS TO CREDIT

5 CLUSTERS COVERED UNDER EUROPEAN UNION PROJECT States 5 Clusters 11 Families 45651

6 OBSERVED CATEGORIES OF LOW INCOME LEVEL GROUPS Group Yearly income % households level (Rs) W1 < W W W Poverty line Rs

7 APPROACH TO MICRO CREDIT Initiation by integration to social development approach Started as component of women empowerment Started through women self help Group Targeted at fulfilling family needs

8 CHARACTERS OF SHG FORMATION OF VOLUNTARY GROUPS INITIAL MEETINGS WITH PRAYERS FOR SOCIO CULTURAL INTEGRATION UNIFORM PERIODICAL INDIVIDUAL MEMBER SAVINGS PROMOTED SAVINGS USED AS LOANS FOR THE MEMBERS OF THE GROUP CHARGE INTEREST ON LOAN FOLLOW 16 POINT SCALE FOR BANK LINKING

9 PRESENT STATUS OF SHGs No Particulars Total No. of Villages Total No. of SHGs Groups linked to Bank Total Savings Accessedl Credit Details Rs millions Rs Million

10 ON FARM ACTIVITIES Cashew with wheat Grafted tamarind Budded Ber (4th year) Indian gooseberry

11 LIVESTOCK AS ACTIVITY

12 OFF-FARM ACTIVITIES Production of Housing Materials Flour Mill Rope Making Consumer Stores

13 OTHERS HEALTH MARRIAGE EDUCATION

14 ACTIVITIES FOR WHICH MICRO- FINANCE SOUGHT LIVESTOCK (CATTLE,BUFFALOES,GOATS) 31% ON FARM 34% NON FARM ACTIVITIES 31% (LIKE GROCERY SHOP, CLOTHES STITCHING, ETC) OTHER FAMILY NEEDS 4% (SCHOOLING, MARRIAGE ETC)

15 REASONS FOR SELECTING TO BUY COW Supplementary to agriculture 33% 27% Supplementary to day labor Milk for kids and sell surplus Add to existing milk business Consumption only 3% 7% 20% Supplementary to other business 10%

16 LESSONS LEARNT Poor can also save Poor can pay interest at market rates Credit can be for any need Credit amount based on payment capacity and track record 100% recovery essential Full transaction costs must be met

17 SHARE OF DIFFERENT PLAYERS Share o f the M icro F inance pie in India Share of M icro finance pie in BAIF Delivery 41% Enablers 59% Delivery 18% Enabler 82%

18 POTENTIAL AND CURRENT ACHIEVEMENT St at us o f microf inance out reach in India Status o f M icro finance o utreach in B A IF Current 15% Current 7% Unt apped Pot ent ial 85% Unt apped Pot ent ial 93%

19 ISSUES NEEDING ATTENTION ASSESSING FELT NEEDS OF THE SOCIETY IDENTIFYING ECONOMIC ACTIVITY AND CORRESPONDING SOCIAL GROUPS IDENTIFYING REGIONAL FACTORS AFFECTING SOCIO-ECONOMIC HARMONY IDENTIFYING VOLUNTARY GROUPS FACING ECONOMIC POVERTY SEARCHING MODELS FOR CAPACITY BULDING AT ALL LEVELS

20 ISSUES NEEDING ATTENTION ARRIVING AT OPRATIONAL STANDARDS FOR WORKING OF VOLUNTARY GROUPS SEEKING MICROFINANCE DEVELOPING INFORMATION SYSTEMS FOR TRACKING LENDING ACTIVITY IDENTIFYING DIVERSIFICATION AREAS FOR MICROFINANCE

21 ISSUES- OPERATIONAL CREDILBILITY OF THE GROUP MEMBER LIMITED FINANCIAL RESOURCES NO PROVISION FOR COLLATERAL SECURITY LACK OF INSURANCE SERVICES FOR ASSETS AND/OR MEMBER FAILURE OF PROPER ACCOUNTING AND REVIEW OF STATEMENTS EFFICIENCY OF EXTENSION STAFF CASH HANDLING BY STAFF DISTANCE FROM OFFICE

22 FEW SUGGESTIONS SCOPE SHOULD BE SEEN IN THE LIGHT OF GEO-CULTURAL PERSPECTIVES SUCCESS IN NEED PRIORITIZATION WILL DETERMINE SUCCESS RATE. IN LOW INCOME AND ILLITERATE/LOW LITERATE SOCIETY, FINANCIAL RESPONSIBILITY OWNED BY GROUP SEEMS TO BE MORE REWARDING THAN INDIVIDUAL LENDING. HOLISTIC UNDERSTANDING OF LENDING ENVIRONMENT NECESSARY BEFORE FINALIZATION OF STRATEGY

23 FEW SUGGESTIONS STRATEGISE AFTER UNDERSTAND SOCIOCULTURAL VARIATIONS CONCENTRATE ON LIVELIHOOD ACTIVITIES IN AGRICULTURE FORMULATE VOLUNTARY SOCIAL GROUPS FACNG ECONOMIC POVERTY TRAINING AND EQUIPPING THE GROUPS FOR MICROFINANCE ENSURE EFFECTIVE ACTIVITY DELIVERY THROUGH TECHNICAL SUPPORT ESTABLISH INFORMATICS FOR REVIEW AND MONITORING ENSURE GROUP RESPONSIBILITY FOR LOAN REPAYMENT

24 Thank You!