Presentation on genesis of Micro finance

Submitted to: Ms. Sandeep Kaur(deptt. Of Commerce)

Submitted by: Monica Bagga M.com 3rd sem 3101

Micro Finance

Micro Credit Micro Savings

Micro credit-is a provision of credit and other financial services and products of very small amount to the poor in rural, semi urban & areas for enabling them to raise their income levels and improving standards

Micro savings- savings made by low income or poor people made their savings in particular institutions.

Grameen creditPromotes credit as

human beingTo help poor peopleGenerate self

employmentBuilding social capitalLoans are repaid in small

installmentsChallenge of traditional

banks

Types of micro savings products

• Involuntary deposits• Voluntary deposits• Contractual savings• Time deposits

Types of Micro Credit products

1) Income generation loan (IGL)2) Mid Term loan (MTL)3) Emergency loan4) Individual loan

Low rate of interest on loan

Not a charitySize of loan and

savings

SHORTCOMINGS OF MICROSAVINGSNot available the micro

services at vast levelUnawareness among

peopleInfrastructural facilitiesDoubts in mind of people

Solutions to overcoming problems

Improving proximityLess costly services to poor

peopleImproving the securityOrganizational staff’s

attitude ,culture is user friendly