Professional Documents
Culture Documents
Context
Poverty reduction - Household Outreaching poorest of the poor Ensuring food security Providing security of shelter Promoting educational security Providing health security Promoting and sustaining income security Sustaining social security Ensuring gender equality and equity Protecting from risks and vulnerabilities
Available experience
Current status
microfinance has only reached about 10% of its potential market so far microfinance is now a tested business model offers variety of financial products such as savings account, productive loans including working capital loans, micro insurance, and even housing finance. Still evolution continues through experimentation Established social capitals: SHG - federation, cooperatives, trade-unions, NHG PRIs, SHG PLFs etc Conceptualized into different phases
Microfinance components
Setting standard by practice and develop benchmark as a model Mechanisms to ensure homogeneity and reach of equitable benefits Positioning social capital as a development organization: clear institutional framework, purpose clarity with governance and executive system Defined mission and vision for the organizations Institutionalizing democratic process in SHGs and cooperatives Satellite groups/cooperatives in remote areas
Financial intermediation
Tapping the savings potential into the system through safety and security mechanisms and guidelines Sophisticated systems to track the financial performance at member and SHG/cooperatives level investment on capacity building and providing necessary equipments and facilities Individual subsidy to institutional subsidy Financial inclusion and financial literacy through community organizations to make the reach of banking services to all eligible people Lending only through SHGs or Cooperatives by banks to avoid multiple loans
Financial intermediation
Remittance transfers and payments to experiment in places where the migration is traceable (within the state or across the states) On-going capacity building for banks, NGOs and government through community organizations (as resource centres) in remote areas to initiate and intensify the linkages Guidelines to sensitize insurance companies on providing pro-poor products Strengthen the demand driven credit service Corpus creation for sustainability
Livelihood intermediation
SHGs/Cooperatives with NREGAs to ensure employment to the needy Financial allocation (grant) for potential assessment for livelihood promotion in an area/location (SGSY) Wage based permanent job and assets creation Financial assistance for skill building and promoting entrepreneurship through SHGs and Cooperatives Providing infrastructure to SHGs/Cooperatives for promoting local markets (shandy) Promote community managed storage facilities for better marketing of the produces and goods (government can allocate, wherever it is possible and feasible) Attention on building local economy vibrant
Civic intermediation
Positioning the SHGs to avail primary health care services from PHCs and government hospitals (health card Pondicherry), secondary and tertiary services through referrals Grant support to SHG-federations/cooperatives for health literacy among their members Experiment running a few model primary schools by SHG-federations/cooperatives Promote and strengthen the linkage with PRIs for inclusion of poor in the development planning, implementation and monitoring process. Support for providing special care and services for the old age and disabled through SHGs/cooperatives (there are a few people initiatives)
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