This is a collage project to submit here.information about microfinance

1. MICROFIANCE INSTITUTIONS
AND THEIR IMPACT

2. PRESENTED BY:
Group 4
Shradha Mulay
Ankita Ingale
Muskan Verma
Priyanka Sharma
Rekha Thakur
Snehal Jadhav
Rakesh Koli
Pranav Kagada

3. MICROFINANCE
 Financial service given to the people with low income or the
unemployed persons, small scale businesses, group of people
in remote, underbanked areas
 Microfinance institutions: financial institution providing small
loans and other banking products to underbanked,
unemployed and low income individuals. E.g. Bandhan bank,
Ujjivan small finance bank, etc.
 Impact of MFI’s:
 Rural development
 Job creation
 Women empowerment
 Financial inclusion.

4. Concept of Microfinance:
 Small loans
 SHG loans
 Aiming to reduce poverty
 Empowerment of the less privileged sector.

5. IMPORTANCE OF MICROFINACE .
Economic development of remote areas.
Help in community building- eg. Lending to small
groups, SHG’s
Empowerment of small businesses.
Intermediate between borrowers and lenders.
Social and financial inclusion of underbanked areas.

6. Financial Inclusion Initiatives and
Challenges.
 Financial inclusion.
 Internet banking
 Providing micro credits.
 Saving accounts
 Application of government policies.
 Challenges.
 Limited facilities
 High interest rates.
 Illiteracy among the client.

7. Social and Economic impact on
communities.
Social Impact
 Improve the standard of
living
 Financial education of the
people.
 Women empowerment.
 Gender equality.
Economic Impact
 Greater income .
 Expansion of businesses.
 Creating more jobs.
 Availability of banking
services.

8. Government initiatives for financial
inclusion and their effectiveness.
 Government initiatives :
 Legal framework
 Government schemes – eg. KCC(kisan credit Card), PMJDY,
PMMY,etc.
 Effectiveness :
 Creating opportunities..
 Reaching underbanked and remote areas.

9. Challenges faced in reaching remote and
underbanked areas.
Seasonal income: e.g. income from crops.
Less technological advancement.
Language and cultural barriers.
Less facilities and infrastructure.
High cost of operations.

10. Sustainable banking and socially
responsible practices.
Social impact- poverty reduction, women
empowerment, job creation.
Sustainable growth.
Transparent working and pricing.
Fair treatment of the client.
Customer centered approach.

11. Integration of environmental and social
consideration
Sustainable banking products. E.g. Green loans,
Green project finance, etc.
Ethical banking.
Social impact on investments.
Responsible towards clients to use responsible
business practices.
Financial inclusion of the remote people. E.g. SHG
loans.

12. Thank you
 Guidance by : Mr. Pawan Maheshwari