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Some Recaps Plz-Is Microfinance A Recent Concept? Models of Microfinance?

The document provides an overview of the history and institutional structure of microfinance in India. It discusses how self-help groups (SHGs) were pioneered by NGOs in the 1980s and how the SHG-Bank Linkage Programme was launched in 1992 by NABARD to provide financial services to poor people through SHGs. It outlines the key institutional structures involved, including NABARD, banks, SHGs, and federations. It also briefly describes some common microfinance products offered in India like loan protection life coverage, health and non-health insurance products for MFI clients, and pension programs through MFIs. It raises issues around claim settlements and changes to government policies impacting pension programs. Overall

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Rizwana Baig
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57 views

Some Recaps Plz-Is Microfinance A Recent Concept? Models of Microfinance?

The document provides an overview of the history and institutional structure of microfinance in India. It discusses how self-help groups (SHGs) were pioneered by NGOs in the 1980s and how the SHG-Bank Linkage Programme was launched in 1992 by NABARD to provide financial services to poor people through SHGs. It outlines the key institutional structures involved, including NABARD, banks, SHGs, and federations. It also briefly describes some common microfinance products offered in India like loan protection life coverage, health and non-health insurance products for MFI clients, and pension programs through MFIs. It raises issues around claim settlements and changes to government policies impacting pension programs. Overall

Uploaded by

Rizwana Baig
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Some Recaps plz-

Is microfinance a recent concept?


Models of microfinance?
Institutional Structure of Mf- Govt

Pvt S Bank
Government
Banks Public S Bank
/RBI

PSL

Term Term
TL/BC Loan/ Loan/BC
BC /Direct

MFIs- NBFC,NBFC
MFIs, Trusts, TL/
Societies, U/S 8 Co, BC
Cooperatives
JLGs/groups
History of Microfinance
NABRD (SBLP )-The SHG-Bank Linkage Programme began in 1992.

Self-help groups (SHGs) were piloted by NGOs, notably MYRADA in India in the
mid-1980s, in order to provide financial services to poor people. What started as a pilot
programme has now become a movement for social empowerment – particularly for
rural poor women. The number of SHGs linked to banks has increased from about 500 in
the early 1990s to more than 1.6 million in 2006.

In 1987 NABARD first put funds into the SHG movement (in response to a proposal from
MYRADA submitted in 1986). In 1987 it provided MYRADA with a grant of 1 million INR
to enable it to invest resources to identify affinity groups, build their capacity and match
their savings after a period of 3-6 months.
As a result of the feedback from this initiative, in 1989 NABARD launched an
action research project in which similar grants were provided to other NGOs. After an
analysis of this action research, and owing to the efforts of successive
NABARD chairpersons and senior management, in 1990 RBI accepted the SHG strategy as
an alternative credit model. NABARD (1992) issued guidelines to pro
vide the framework for a strategy that would allow banks to lend directly to SHGs
.Based on these initial experiences, the SHG-Bank Linkage Programme was launched in
1992
Self Help Group Models
SHG
Federation

SHG
SHG
Cluster
Cluster

SHGs SHGs
SHGs SHGs
Institutional Structure of Mf- Govt./SHG
PSB

RBI Banks/PSL
Pvt.Sec
Bank

NABARD SHPI/NGO
SHGs/Feder
ation
Institutional Structure of Mf- Govt./SHG/NRLM

NRLM

SRLMs

Cluster Lev
Fed
Grp Formation, CB,
Linking with Bank

SHGs
Products-Insurance
Section 32B and 32C of the Insurance Act, 1938 and IRDAI (Obligations of insurers to rural
and social sectors) 2015, stipulate obligations to insurers in respect of rural and social sector,
which have also contributed a lot in development and promotion of micro insurance
products by insurers in India.
There are around fifty-two products offered by all registered non-life insurance cos
targeting low income segment of the population e.g., Cattle Micro Insurance, Kisan
Agriculture Pumpset Micro Insurance Policy, Janata Personal Accident Sukshma Bima
Policy, Silkworm Sukshma Bima Policy, Sheep & Goat Micro Insurance Policy, Sampoorna
Griha Suraksha Policy etc.

Loan Protection life coverage

Insurance 20 MFIs have reached to 9.05 lakh clients for


health products

33 MFIs have reached to 51.1 lakh clients for non-


Issue- Claim health products
Settlements
Products – Pension
10 MFIs with 3,36,000 clients

Issue- Government’s sudden


changes in the policies
Microenterprise - 93% Income
generation Loan
Impact of microfinance
– Poverty Alleviation
What didn’t you understand?

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