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WELCOME
Presentation on:
By:
Mr.Bharath.P
“Role Of Microfinance Intervention in Financial Inclusion: A Comparative Study of Microfinance Models”

Final Year MBA

A.J.INSTITUTE OF MGT(AJIM)
Mangalore
 TABLE OF CONTENTS:

I)INTRODUCTION

II)LITERATURE REVIEW

III)MICROFINANCE-AN ALTERNATIVE SOURCE

OF FORMAL FINANCE

IV)THE PRESENT STUDY

V)CONCLUSION
  INTRODUCTION:
Worlds population-have access to formal
financial services.
Problem of sub-optimal services
Contingency planning and risk mitigation
Need of access to credit for livelihood
creation
Wealth creation
“Microfinance- An Alternative Source Of
Formal Finance”
Ample space for innovative approaches to
serve the financial needs of India’s rural
poor.
Efforts have been made by the govt,
financial institutions, and NGO’S to
develop new financial delivery
approaches.
Microfinance approaches-safety and
reliability of formal finance
Micro finance services
offered to the poor:

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What Microfinance Does and How?

Self
Help Group (SGH) Bank Linkage
Model

Grameen Group Model

Research Problem And Objectives

How do the clients of the two main models

of microfinance, the SHG model and the
MFI model, differ?
What is the average level of indebtedness
to non-institutional sources among clients
of different models of microfinance?
Does the level of indebtedness to
moneylenders depend on the type of
microfinance model one is client of?
Credit Agency Percentage of Rural Households
Government 6.1
Cooperative Societies 21.6
Commercial banks and RRBs 33.7
Insurance 0.3
Provident Fund 0.7
Other Institutional Sources 1.6
All Institutional Agencies 64.0
Landlord 4.0
Agricultural Moneylenders 7.0
Professional Moneylenders 10.5
Relatives and Friends 5.5
Others 9.0
All Non Institutional Agencies 36.0
All Agencies 100.0
 Findings And Discussion
 Comparison of Alternative Microfinance
Model Clients
 Level of Literacy
 Housing
 Landholdings and Sources of Income
 Targeting Efficiency of Microfinance
Programmes
 Income and Consumption Expenditure
 Household Indebtedness