Posts Tagged ‘micro loan india’
Micro Loans Have Changed India
April 6, 2011 | 
Author How Micro Loans have changed India
Dola Tikader lives in the village of Bankura in West Bengal. For years, she has struggled to make ends meet with her family’s craft of making beaded jewelry. But now Dola is free of most of her financial troubles, is working on expanding her business and has employed 9 other women from her village as well. All of them make a decent income and are generally quite a happy bunch. How has this been possible?
Well, the thing that made this huge difference was a micro loan. Dola got a micro loan of Rs 15,000 from an MFI working in her village and she used it smartly. First she got trained in the Self Help Group (SHG ) initiative where she learnt all about making fancy costume jewelry and updated herself on the latest styles and trends women in Calcutta prefer. After that she used the micro loan to get the raw material required and started producing jewelry. She sold her hand- made jewelry to sellers in Calcutta and made a decent profit. And then she employed other women from her village in her business as well.
It may sound corny, but micro loans and other micro financing have actually changed India. The success rate of SHGs’ who have availed of micro loans is so high that it makes loan sharks look bad. The repayment of micro loans has been estimated to be more than 97%, which is very good by any standards. As support for micro loans keep increasing, so does their influence.
Posted in Micro Loan Success Stories | 
Tags: india, loan, MFI, micro loan, micro loan india, micro loans in india, Micro Loans India, Microloan, Microloans in India, SHG | 
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Micro Loan Role In India
The role of Micro loans in India: A boon
Most people have heard of Micro finance and micro loans in India, but very few actually give serious thought to it. The truth is that micro loans have changed the way the rural community lives. Once upon a time, someone from a low- income background without any verifiable credit history couldn’t dream of getting a loan fro a bank, but due to government initiative the person can have access to a micro loan without any collateral. Poor disadvantaged people can now set up small cottage industries and earn a decent living for themselves and their families. That is the case in Krishnakari in Tamil Nadu.
With the help of the Mahalir Sangam, a Self Help Group initiative by the state and central government, the economic condition of the people of Krishnakari is changing. Many SHG’s have been formed with the help of the money got from micro loans and poor women and men are earning a livelihood as employees. One such success story is of an SHG which sells ‘Chapatis’. With a micro loan of Rs 22,000 from a Micro Financing Institution (MFI), this SHG started a smart Chapati- making service. They even bagged an order for making 3000 Chapatis for TVS employees everyday. The SHG has not only repaid the micro loan fully, but are making a decent profit as well.
The role that micro loans in India have played is truly commendable. As awareness about micro loans grow, so does the rural economy.
Posted in Microloans In India | Tags: bank, credit, loan, Loans, Mahalir Sangam, Micro Finance, micro loan, Micro Loan In India, micro loan india, micro loans, Self Help Group, SHG | No Comments »
The Importance Of Micro Loans In India
How important are Micro loans in India?
A micro loan is a loan that has been specially designed to meet the needs of people who are not bankable in the eyes of the average bank or financial institution. Micro loans are usually small amounts of money loaned out to home based or small- scale businesses that have the potential of meeting the financial needs of the entrepreneur and workers. Such type of loans can be repaid when the small business makes profits.
The reason why micro loans in India started out way back in the early part of the 1990’s by NABARD was because of the large number of unemployed people who were poverty stricken. Though it was done basically keeping the requirements of women entrepreneurs in mind, it frequently offered the working poor men a helping hand for starting a small business. The truth about the Indian financial system is that a poor person from a rural community will not have a credit rating that will allow him to get a standard loan from a traditional bank or financial institution. For them, a micro loan is a boon to propel them to start a business to meet their financial requirements.
Micro loans in India have come a long way. Now many MFI’s operate in this sector specifically to help the poor community. Grammeen Foundation, Asmitha, Myrada Bnadhan, Grameen Financial Services and Micro Credit India are a few of the financial institutions which are specializing in providing micro loans to the people who need them the most.