âz™i+^:¾'VÆnÑÑíMicro Credit: A Life Line for the Poor

âz™i+^Hì? 1X

What is Micno Credit ?

âz™i+^»ÈǃVÔ‰VZzgà~´V~¾'VÃñe$Ãg§iÐg¶:Z0+Zi™äZzgâ1C}.â]�ÛZë™äÐìTÐZy»£gi0+ÏZzôƒXâz™i+^ZŠZg}ZyW‚EVÃ�ÛZë™D�XÃyÏΊÅѲzZZ#�? X2

What are the interest rates applicable?

(Æ�ÑbΊ Financial Sector Reform ~â1CøgÃgx) 1991 ¸g]~(ÆÂx~Z&bZq-¢zg~z¯XZkZ&k÷Æ‚B‚Bâz™i+WgkH,cÃÑb interest rate)

ΊÑÍHY@*ìc*QÔâz™i+WgkH,cÐpŠ‚|#¡VÃ'×h+ÃZ+{ÆnZµZµ§hVÐÑÍHY@*(ÆCÙŒÛnŠZg6,Ñ̓CìÔZzgtÂx',ŒÛZgìX Loan ìXZkZÚ†&gf$ÅuJÆfg=ŠØ‰ßy)

âz™i+^J-g‚ðÅH•ŠZzgÑZ_�? X3

What are the terms and Conditions for accessing Micro Credit ?

Lending Norms iFzVÃæÃgnpƒñËVÃWiZŠ~Š~ˆìZLZŠJgŠ¶ÆZ2)(¯äÅXËVÐt¹Y@*ì�z{oƒ&ßyZzgYÅD+Û™,Zzg‚B„0ÑZ_ZzgZ2ÃßyÅg¶ÔZkÅ

z){à (unit Cost, Unit size,Maturity period, Grace Period, Margins Etc.) -.$Æ&Š·y~gnpƒñÑÍ™,XZk§bÆ™i+^:Üs¾'VÃkZzggziÇgÆnŠØYD�ÉZyÆ

nu6,¿�ÛZë™äZzg§ii0+Ï~‡JgÑäÆnÌæŠÇgƒD�XHì? Self-Help Group (SHG) X4

What is Self-Help Group (SHG)

Unregistered c*Registered gL@*%zVÆfg=¯c*ŠHÔ Self- help group (SHG)

¤/z\ìT~7V�YZzgZOŠ~:©ÆßvZq-‚BgKgS0*È~Ð:Z0+Zi™D�TÐ�

7755gm,gzJMsZ&+c*DZq-¬xMŠòc

¦ƒY@*ìT£fg=z{ZKuò¢zgÂVÃW3fZg~ÅãCŠ6,7gZ™D�XZk Common fund Zq-¤/z\ÆZgZWïV™ZK=ZEw™DƒñZk™i+^»9ZEw™D�Zzgz»¯»ZKZK»g™ŠÏÅ

(ŒÛnÅJ-$»Zq-6,ZW,$+wìX peer Pressure) g7g^7™D�Xc6,bÆfg=ÃÑ$k5ë EEY™äÆH¯ZZ+�? SHG X5

What are the advantages of Financing throug SHG ?

¨Zq-¤/z\ÆgÁƒäÆÔâ1Cîg6,¾d$ZKypŠÃ'×h+¢oCk™@*ìÔZkÆ´z{à lendere ™äÐŒÛnpZ{ZzgŒÛnŠZgÆAŠ+ÃÃZ+{(ìX²ŒÛnŠZg Financing Æfg= SHG

SHG ™**7,@*ìOñZkÆ�ÅFgLZ»ƒÛÆZz6,«ƒÔZq- handleà SHG ÜsZq-ÆgÁÆZŠJghezZßV»»y%p»ƒY@*ì)Zq-',ZõЊzu~',ZõJ-Yä»({m™»½~»xZzgßyÐ0»xÆnX

âz™i+^Æ!*g}~Zq-)u»g~H™ŠZgZŠZ™Cì? (6)

What role does a Non Governmental Organisation (NGO) Play in Provision

of Micro Credit ?

»ZÈx™ä SHGs )u»g~Zq-gŸ»gZŠZg{ƒ@*ì��U*晊ZgZŠZ™}‰�âz@*%zVÅ (NGO)

(ʶc‡ìHY@*ìX SHG)Self Help Group ZzgZyÙi+^zâ1C»ñVªJÐ-qÝ™Æâz™i+^Æ[ÐgzBZŠZ™äÅ].h+´#ÖHì? (7)

What are the latest Micro Credit disbursement indicators ?

<þ'VÆn'×h+W‚yZzg!*p¯äÆÃtÐZq-µ/È6,z7½ïEHâz™i+ÃÃ~gnpƒñÃËVÆ‚B�hZŠHXZkZY Self Help group (SHG) Æfg=ÑzqHŠH)� NABAI~1991-92

4,61,478 Å2̵n SHG ZzgÃW6,&43ð GHGËVJ-'×h+;1ŠHX13âga2002~ËVÐa%}ƒñ RBI ÃJ-¾d${0+ZyÃgï<Å}.â]Ð�h}‰� 7,87 Million J-VˆXŠzu}ZÖp~¹YYì�

ÃJßy»ù¦Jw SHG Ðic*Š{¤/z\{m™úgÂV6,Œ¤/z\ËVÐa%‰XZy 90%~2002 âga 31X

°{0+Zy Rs.1,31,6=00 Zzg SHG°Rs.22.240/- g;T»Zz‰ŒÛn Rs.1026.34~2002 âga 31y

ÆSHG ÆU*晊ZgƦñ NGO ª¯ Model-1 ƈ[ÐÈMh�� Model-wise Iinkage g;

8855gm,gzJMsZ&+c*DZq-¬xMŠòc

»ˆ[Zzg 75% Æn SHG ÆU*晊ZgÆ‚B¦ñ NGO Ôª Model-II »ˆ[ìÔ 16% n²‚g~gc*2V 59% » total linkage Æfinancing agency Æfg=Zzg NGO Ôª Model-III

Private #ŸJ) 44 Jøq 444 IZk6,z¤/Zx~�áï�Ô 448 (à~´VÆ Urban Zzg)

JSHG Æ‚B NGOs 2155, Co-operative banks 20 Zzg RRBs 191( �áï 17~Sector

Ða%}ƒñ�X linkage Program

Å~¸g]~©¬x6,Wc*ìÔ finance model JÅ5¼-

÷EGE6,z¤/ZxGZq-¤‰Üzg SHG²

Šzu}âe²Ì¨Zq-{mâzÃÑ÷Æ�ZC™ŠZgZŠZ™gì�ÔŠzu}»x[âe²��©¬x6,Wñ�z{t�:(Zq-U*æâew��<ÆŸ‚zZ2Æ�»x™@*ìZzgT»¯¾YZzg™i+^ìXZzg˜V¤/ZƒV i)

Æfg=�ÛZëÅYCìX SHGs Ã<}.â]',Z{gZ„&c*ÌìXtâew Wholesale banking Model í6,”Zq- NGOs Zzg MFIs, SHGs (ii)

6,Œì��ßyz){ÅW‚*V�ÛZë™@*ìX Pakage Zq-{m

ìqÑèZkâew Individual Banking based Model (Zn´z{ZÐZŠ~Zzgœ�í6,”Zq- iii)

Æ�6,z¤/Zx$4-A.3ïEGEEHZzgZy%Z`»Z0+Zi{Zq-

85Ó4-÷FGGEEìÂÌt»°ñizVâewâ**Y@*ìX

J-™i+�ÛZë™äÆÃtÐ7g}Äà Public Sector Zy‡âãîg6,ëwâe²Æfg=¾'VZzgZzg NGOS,MFIs 6,ZW,0*ŒÐhg™Zc*Y@*ìXtZLW\~ÜsZknZë7ì�t¼{m¡V&ËVÔ

Ða%}�ÉtZknÌZë�YèZêZµZµ£œ�XZk!*]Ê·y~gnpƒñWäzZáŠâV SHGs

Åú Micro finance ~ZëŠxZVñYgì�TÐo½~Z(âjwaZƒ�X~åZzg£¨YCâe²Ã½7gj,Z‚ÛZðq݃X c

âz™i+^6,z7½ïEH~HÛzãuâtÎ**Y,ì? (8)

Is Foreign investment allowed in Micro credit Project ?

Ũ��) Micro credit/rural Credit ¸g]u»gä92Z~0002Y~â"3©5½jèHGEGIEYg~HT~

(FDI) Investment foreign <â1CvÅ»g™ŠÏÃgz„ÆnZYi]ŠîìäÑ(OCB) Overseas Corporate Bodies, (FDI) Investment Non Resident Indians

Ãâz™i+^6,z7½ïEH~ËqÆn(,JzZŠbìXt6,z7½ïEHâzCw6, investment‰(NRI)

gL6,ze-uZzggCZŠZg})��ǃVZzg‰V~�(Ãœª(�ÛZë™@*ìX

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Hì? Micro Finance Development Fund (9)

What is the Micro Finance Development Fund?

½™ZäzZßVc¯g~¢zg]tì�z{ZKözŠVÃ��â1CÃZ+{TäJ-„”ì Micro Credit

¾'VÃÃZ+{TäÆnic*Š{îƒZÃtZCNÔT~ˆgCF,ªC}.â]ÆÃc*]ZCN‰�z){z){XZkjZáÐ Design development 55‹V»¬gs Marketing Infrastructure

Union Fincnce (Åú‡.Þ°pìX Micro fincnce development âzÃÑ÷e-})ä001™zhgz[ (NABARD) ÆPÆZ´yÆ_.t!*]©¬x6,Wð�**!*ge 2001ÆMinister

ÆNGO ÆZgZW (SHG) Self help group (a) Æ-ÃZ‰Hqgzfs»ñV~æŠÆn:ÑZ•'ŠZgzVZzgJZzgÍgZªVÃR,“ZzgñizVâjw½™**X

™Z**ZzgÑz¬]~ƒñÄg}~把bX (ÃÑz¬C-½ Micro finance institution (âzÃÑ÷ZŠZgzV) b)ÅúZzg›zúÆy%aÃ7gZ™**X SHG (c)

(5‹V»{�»g™**X d)Zzg55»g™ŠÏà Managment Information system (âzÃÑ÷Æ�g^aÔg^aÆ»ñV e)

(,JzZŠbXZk§bÐZk-иZyÅYCì�t¡VÅF,¹Ô!-A.3ï

EEEHÆ66§hVÃWÐ(,Jä~æŠÇgU*"$

äe:Ôe:™zhgz[Zk-~Îñ�Ô‚B„ŠHg{êøËVä NABARD Zzg RBI ƒÇX™zhgz[»uâc*Îc*ìX 20

X¸g]~X§bÆâz™i+^6,zZ[+gi�ZzgZyÅqDãCŠHì? 10

How many types of Micro Credit Providers are the in India and What is the

Present framework governing them?

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ªøDfsì:ZyÅ»g™ŠÏÃ`äzZчâãeJç

Legal Framework governing their activities

6,zZ[+giÅ9Catagories of Providers

(RBI Act 1934) 1934 1XWg!WðZl(BR Act 1949)1949 2X!WgZl

(SBI Act 3XZö!WðZl)(SBI Subsidiare Act 4XZö!Wðƒ&ek,m,Zl)1980 Zh 1970 5XZrKcZhR,ZcWsZ&+g"5½5ë HGE

YZl

ez!k5ëH#Ÿ&45½ø EGE (i)

êø&45½ø EGE

6,ZÇf$ø&45½ø EGEZzg

ßÀZk,c*&45½ø EGE

(RBI Act 1976 )1976 1XWg!WðZl(RBI Act1934)1934 2XWg!WðZl(BR Act 1949)1949 3X!WgZl

(g¥gzgw&45½ø EGE II)

(Co-operative Societies ACt 1XÃW6,W΂ÌZl)BR Act 1949 (AACS) Zö() )ZñZñÏ 1949 2X!WgZl

RBI Act 1934 )oz®&45½ø EGEÆn() 1934 3XWg!WðZl(for sch.banks)

(ÃW6,W&45½ø EGE III)

1XZÃÊ-BhÓ4jè GEGIE‰Z*Z}ÏZö

(State Legisletion like MACS)

ÃW6,W΂g iv

(RBI Act 1934) 1934 1XWg!WðZl(Companies Act 1956)1956 2XgZl

(gZeZ+!ZpÏ v)

ËVÆ ÆnÑ̓ZZzg Cor �� 1997 1XWg!WðZr4Zl��g]Ð0�X NBFC, fg=ZÌJ-gŠ7HŠHÔÐI

(ZygZeZ+!ZpÏ vi)

(MBFCs Coming on the business of EFI Prior to

theComing into force of RBI Amendment Act

1997 Whose application for CoR has not yet

been registered by the bank

Sectian 25 ofCompanies Act) WsgZl) 25 2Xv

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