Customer Satisfaction and Microfinance in Unacco

7/28/2019 Customer Satisfaction and Microfinance in Unacco

1/21

BYWAIKHOM BHOPENDRO SINGH

MBA(3rd sem)Galaxy global Group Of Institutions,

22nd november 2012


2/21

What is Microfinance Role of microfinance Origin of microfinance Profile of Microfinance Institution in India and

growth Activities in microfinance SHG and how it work Top five leaders &players in Microfinance industry as

per crisil rating. Working process of microfinance industry in India. Company profile, vision and mission Findings from the study. Suggestions and conclusion.


3/21

According toInternational LaborOrganization (ILO),

Microfinance is aneconomicdevelopmentapproach that

involves providingfinancial servicesthrough institutions tolow income clients.


4/21

Microfinance helps poor households meetbasic needs and protects them against risks.

The use of financial services by low-income

households leads to improvements inhousehold economic welfare and enterprisestability and growth.

By supporting womens economicparticipation, microfinance empowers women,thereby promoting gender-equity andimproving household well being.


5/21

The emergence of informal financial institutions inNigeria dates back to the 15th century, they were firstestablished in Europe during the 18th century as aresponse to the enormous increase in poverty sincethe end of the extended European wars (1618 1648).In 1720 the first loan fund targeting poor people wasfounded in Ireland by the author Jonathan Swift.After a special law was passed in 1823, which

allowed charity institutions to become formalfinancial intermediaries a loan fund board wasestablished in 1836 and a big boom was initiated.


6/21

Their outreach peaked just before the governmentintroduced a cap on interest rates in 1843. At thistime, they provided financial services to almost20% of Irish households. The credit cooperativescreated in Germany in 1847 by Friedrich Wilhelm

Raiffeisen served 1.4 million people by 1910. Hestated that the main objectives of these cooperativesshould be to control the use made of money foreconomic improvements, and to improve the moraland physical values of people and also, their will to

act by themselves. In the 1880s the Britishcontrolled government of Madras in South India,tried to use the German experience to addresspoverty which resulted in more than nine millionpoor Indians belonging to credit cooperatives by

1946


7/21

. During this same time the Dutch colonialadministrators constructed a cooperative ruralbanking system in Indonesia based on the

Raiffeisen model which eventually becameBank Rakyat Indonesia (BRI), now known asthe largest MFI in the world.


8/21

Microfinance began in India in the 1990s as a wayof alleviating poverty, by encouraging incomegenerating activities by poor households.

Estimated that 350 million people live Below

Poverty Line This translates to approximately 75 million houses. Annual credit demand by the poor in the country is

estimated to be about Rs. 60,000 crores. Cumulative disbursements under all micro finance

programmes is only about Rs. 5000 crores. Total outstanding of all micro finance initiatives in

India estimated to be Rs. 1600 crores. Only about 5 % of rural poor have access to micro

finance.


9/21

Some quick highlights industry growth in India: MFIs have recorded about 8.5 million clients during

the year 2008-09, a growth of 60% over the previousyear.

More than 50 percent of low income households arecovered by some form of microfinance product The total outstanding microfinance loans posted a

growth rate of 30% or 359.39 billion over the last yearslevel of Rs 229.54 billion.

The overall coverage of the sector is estimated to havereached 76.6 million against 59 Million last year. The SHG loan outstanding has increased by Rs. 71.5

billion with an addition of 6.9 million clients.


10/21


11/21

Microcredit

Micro savings

Micro insurance

Remittances


12/21

NABARD (1997) definesSHGs as "small, economicallyhomogenous affinity groupsof rural poor, voluntarilyformed to save and mutuallycontribute to a common fund

to be lent to its members asper the group members'decision".

Most SHGs in India have 10to 25 members, who can beeither only men, or only

women, or only youth, or amix of these. As women'sSHGs or sangha have beenpromoted by a wide range ofgovernment and non-governmental agencies, theynow make up 90% of all

SHGs.


13/21

SKS Microfinance Ltd (SKSMPL)

Spandana Sphoorty Financial Ltd (SSFL) Share Microfin Limited (SML)

Asmitha Microfin Ltd (AML)

Shri Kshetra Dharmasthala RuralDevelopment Project (SKDRDP)


14/21


15/21

The company was launched as anon banking finance company inSeptember 2008 under the nameof Shavi Trexim and HoldingsPvt. Ltd. In the year 2009

considering the growth of thecompany the name was changedto UNACCO FINANCIALSERVICES PVT. LTD. having it'sHead Office at National GamesVillage Apartment, Flat

No.402, 4th Floor, Block No. A-15, Borsajai, National Highway37, Beltola, Guwahati- 781029.The Registered Office of thecompany is at 12/2, Sovram

Bysak Street, Kolkata 700007


16/21

VISION:

1 million members in 2015.

MISSION:

To restore the pride through economic development andcreate sustainable social development Therefore, UFSPLsmission is to provide micro credit and other financialservices to poor household by using women as medium

To generate direct as well as indirect employment for

educated un-employed local youths; To provide quality education at affordable cost to children

of poor family;

To improve the pace and quality of life of the rural andurban poor especially the village and decentralized sector


17/21

It is found that most the clients of the UNACCOcome to know about the product and servicesthrough Field Executive and only a few memberscome to know throughclients,advertisement,friends,relatives etc.

It is also found that 20% of the current clients wantto take individual loan for their business needs.

It is also found that most of the clients of UNACCOare satisfied with the current interest rate only few

clients are not satisfied. It is also found that the current clients are not taking

loan from other sources other than UNACCO asthey are satisfied with the UNACCOs services and

only few are taking loan from other sources.


18/21

Some of the competitors of UNACCO areLoyalam,Chanura,YVU in manipur andAssomi,RGVN,Nghtingle..etc. in assam. Amongthese UNACCO is the leading company inproviding loan facilities in manipur.

The quality of the service experienced by thecustomers,the customer training provided bythe company and field executive experience isfound to be satisfactory and cooperative.

There is no dissatisfaction in the loan collectionprocedure by the customers.


19/21

It is lkely to increase UNACCOs loan amount on thenext term as 90% of the group member want to increasetheir loan amount in the next term as the current loanamount is not sufficient for their business.

20% of the group members want to take loanindividually with higher loan amount.So it is also likelyto give loan for individual as well as group.

20% of them want to change their payable day intomonthly instead of paying monthly and 10% of themwant to add some interest on their saving a/c.Somemore suggestios are:

The members are liked to decrease their depositamount.

It is also like to reach the advantages of UNACCOFINANCAL SERVICES LIMITED loan facility not onlyto some districts but also throught the manipur for a

better socio-economic condition.


20/21

From the above it is felt that, Poor people need avariety of financial services, not just loans. It is apowerful tool to fight poverty further, Interest rateceilings making it harder for poor people to getcredit. The role of government is to enablefinancial services, not to provide them. Donorfunds should complement private capital, notcompete with it. The key bottleneck is the shortageof strong institutions and managers. In such acondition, UNACCO FINANCAL SERVICESLIMITED is helping Manipur to develop not onlythe organization but also to any field.


21/21

Documents

Customer Satisfaction and Microfinance in Unacco