SIDBI's refinance portfolio to touch Rs 20,000 crore
by Virendra Singh Rawat / New Delhi/ Lucknow February 02, 2010, 0:58 IST
The refinance portfolio of Small Industries Development Bank of India (Sidbi) is likely to touch a figure of Rs 20,000 crore this financial year. Sidbi provides refinance support to public sector banks for credit to small industries, including food processing. Besides, credit support to micro finance institutions (MFIs) will be in the region of Rs 2,500 crore for the current fiscal. “We have partnered with 140 MFIs in the country for providing livelihood support to the marginalised sections,” Sidbi CMD R M Malla told Business Standard.
On accumulated basis, Sidbi had extended credit of over Rs 8,000 crore to the MFIs and the outstanding in this regard stands at Rs 3,000 crore. “The micro finance space is quite large in India, but we cannot reach all the segments directly. Therefore, we collaborate with MFIs and NGOs to extend financial support to the needy,” he informed. Besides, he said Sidbi had a good experience in the micro finance sector and had minimal defaults so far. He was here to sign an MoU with American India Foundation (AIF) and an NGO Bhartiya Micro Credit to provide livelihood support to low income groups through an initiative called ‘Rickshaw Sangh Programme’.
Link:http://www.business-standard.com/india/news/sidbi\s-refinance-portfolio-to-touch-rs-20000-crore/384311/
Friday, February 26, 2010
Thursday, February 25, 2010
Rickshaw Bank program
Rickshaw Bank program is designed to provide a means of self-employment to the poor and the marginalized rickshaw community. The Rickshaw Bank provides the target community with an income generating asset – the rickshaw, and allied services thus promoting micro entrepreneurship among urban poor and rural migrants.
As per our survey and experience in the field of microfinance, we had come out with the result that the borrowers did no utilize the loan appropriately. Majority of the loan amount is utilized for consumption and treatment of their family, leading to no improvement in their standard of living standard.
Due to this situation, BMC has decided to provide an asset to its loan clients. As reflected in our survey, we realize that most of the rickshaw pullers take rickshaw on rent and did not earn much form their work and that’s why unable to think on betterment of their family. For the betterment of life of rickshaw puller, BMC is providing rickshaw loan to the rickshaw. The loan would be payable as weekly installments. Hence the rickshaw pullers can easily repay the installment and create an asset for their life.
As per our survey and experience in the field of microfinance, we had come out with the result that the borrowers did no utilize the loan appropriately. Majority of the loan amount is utilized for consumption and treatment of their family, leading to no improvement in their standard of living standard.
Due to this situation, BMC has decided to provide an asset to its loan clients. As reflected in our survey, we realize that most of the rickshaw pullers take rickshaw on rent and did not earn much form their work and that’s why unable to think on betterment of their family. For the betterment of life of rickshaw puller, BMC is providing rickshaw loan to the rickshaw. The loan would be payable as weekly installments. Hence the rickshaw pullers can easily repay the installment and create an asset for their life.
Bhartiya Micro Credit, Registered under section 25 of the companies Act 1956. The company is engaged in providing collateral free microfinance service exclusively to rural and semi – urban women of below poverty line household, organized in joint liability self – help groups.
As per our survey and experience in the field of microfinance, we have analyzed that the loan members do not utilize the loan amount appropriately and so their standard of living does not improve. This led us to innovate and we decided to do away with cash disbursement. Now we provide the loan to the member in the form of assets (rickshaw)
Currently, our Branches are operational in the following districts-
i- Sitaur
ii- Mirzapur
iii- Kanpur
iv- Lucknow
v- Varanashi
