fbpx
  • About us
    • Data Analyst Team
    • Magazines Sections
    • Editorial Team
  • Advertise with us!
  • Business review
  • Guest writers
    • Guest Contribution
  • Subscription
  • Career
  • Contact us
Friday, April 16, 2021
Business Connect | Best Business magazine In India
  • News
    • All
    • Blog
    Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

    Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

    Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years

    Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

    Covid-19: CM Arvind Kejriwal announces weekend curfew – Know Guideline

    Covid-19: CM Arvind Kejriwal announces weekend curfew – Know Guideline

    Motorola Teases Launch of Two

    Motorola Launch ‘G Series’ phones in India – price & specification

    Bharat Petroleum partners Accenture for digital sales

    Bharat Petroleum join hands with Accenture for digital sales, distribution platform

    Microsoft in Talks to Buy Nuance for $16 Billion, expand Healthcare Business

    Microsoft in Talks to Buy Nuance for $16 Billion, expand Healthcare Business

    Flipkart hold Adani Group hands to set up Logistics & Data Centers

    Flipkart hold Adani Group hands to set up Logistics & Data Centers

    Education Minister Releases ‘SARTHAQ’, an Indicative & Suggestive Implementation Plans for Schools.

    Education Minister Releases ‘SARTHAQ’, an Indicative & Suggestive Implementation Plans for Schools

    Tesla hired CBRE to find showroom space in 3 cities of India

    Tesla hired CBRE to find showroom space in 3 cities of India

  • Magazine
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Healthcare
  • Testimonials
  • Launchpad
  • BCM TV
No Result
View All Result
  • News
    • All
    • Blog
    Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

    Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

    Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years

    Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

    Covid-19: CM Arvind Kejriwal announces weekend curfew – Know Guideline

    Covid-19: CM Arvind Kejriwal announces weekend curfew – Know Guideline

    Motorola Teases Launch of Two

    Motorola Launch ‘G Series’ phones in India – price & specification

    Bharat Petroleum partners Accenture for digital sales

    Bharat Petroleum join hands with Accenture for digital sales, distribution platform

    Microsoft in Talks to Buy Nuance for $16 Billion, expand Healthcare Business

    Microsoft in Talks to Buy Nuance for $16 Billion, expand Healthcare Business

    Flipkart hold Adani Group hands to set up Logistics & Data Centers

    Flipkart hold Adani Group hands to set up Logistics & Data Centers

    Education Minister Releases ‘SARTHAQ’, an Indicative & Suggestive Implementation Plans for Schools.

    Education Minister Releases ‘SARTHAQ’, an Indicative & Suggestive Implementation Plans for Schools

    Tesla hired CBRE to find showroom space in 3 cities of India

    Tesla hired CBRE to find showroom space in 3 cities of India

  • Magazine
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Healthcare
  • Testimonials
  • Launchpad
  • BCM TV
No Result
View All Result
Business Connect | Best Business magazine In India
No Result
View All Result
Home Blog

The Rebounding of Microfinance Institutions: What Young Entrepreneurs need to Know?

fanzineindia by fanzineindia
April 29, 2019
in Blog, Blog
1.1k 34
0
The Rebounding of Microfinance Institutions - Business Connect

The Rebounding of Microfinance Institutions - Business Connect

168
SHARES
1.1k
VIEWS
Share on FacebookShare on Twitter

Written by: Dr. Amit Mishra

The Rebounding of Microfinance Institutions: What Young Entrepreneurs need to Know?

  • The ultimate objective of microfinance is to enhance easy accessibility, cost-effective and sustainable financial services or microloans to the budding entrepreneurs, unemployed youths, low earning individuals, a financially poor section of the society, or micro or small enterprises, resulting in raising their incomes or establishment of a profitable business.
  • According to the Global MPI report 2018, India has made remarkable progress by drastically reducing its poverty rate from 55% to 28% in the last 10 years.

With the recent declaration of new ventures in different Start-up sectors, to set up the sustainable entrepreneurship ecosystem driven by government’s financial inclusion agenda, the microfinance in India, with substantial opportunities, is emerging strongly and making a comeback after facing the challenges of demonetization. Sustainable rural development can be attained by focussing on microfinance because of its supportive and self-employment role. The overall GLP (Gross loan portfolio) of microfinance is expected to increase at a CAGR of 28% in 2022.

In recent years, the era changer step taken by Prime Minister Narendra Modi towards e-government with a tag line “we move with the dream of electronic digital India….”, with an aim to “Transform India into digitally empowered society and knowledge economy”, has come up with e-Shakti (Apps also available) or digitisation of SHGs (Self Help Groups), an initiative of Micro Credit and Innovations Department of NABARD, and Digital India, to integrate the government departments, the people of the country (including villagers and farmers) and to ensure effective governance. Altogether these steps have supported the concept of microfinance companies to raise funds, understanding the tremendous potential of the concept in eradicating poverty in developing nations.

Entrepreneurs can’t take off in the absence of necessary funding. To dream of solving problems with innovations is good, but the ground realities need to be taken into consideration in this successful entrepreneurship journey. To face the financial burden along with the cut-throat competition of the business world is the usual problem faced in Start-ups businesses. Usually, most people have no or limited access to public financial services.

However, the obvious question arises is “How to resolve the financial part of Start-ups?”

Monitoring the financial situation of clients and educating borrowers about better money management gives microfinance system an upper hand to the traditional loan offered by the banks. SIDBI (Small Industries Development Bank in India), HDFC Bank, Reliance, ICICI Bank, SBI Bank, etc. are the leading formal sector microfinance providers in India.

What is microfinance?

Microfinance offers financial and non-financial services to the budding entrepreneurs, (especially women) and men, including self-employed who are not accessible to the traditional banking system. A microfinance bank (or microfinance institute) is the organization which offers such services, it can be a credit union, commercial bank, financial NGOs, or a credit cooperative.

Microfinance includes microcredit or microloan, “micro” means “small in scale”, the provision of small loans to underprivileged clients who have innovative business ideas but are not in a financial situation to execute the Start-up venture.

The long history of indigenous banking and money lending dates back to Vedic times, around 2000 to 1400 B.C. Currently, there are three models prevalent in Indian microfinance sector-(1) JLG (Joint Liability Group) (2) SHG (Self Help Group) (3) SHG Bank Linkage

Microfinance services are programmed in order

  • To generate sustainable activities to enhance income
  • To lessen external business upsets
  • To raise the living conditions of entrepreneurs and their families
  • To empower Budding Entrepreneurs and Women

What are microfinance banks?

Microfinance institutions or banks are playing a significant role in women empowerment in India. By offering financial services to the underprivileged women or men of the country, these institutions have opened the door for thousands of young women or men who are looking for their economic growth. Uneducated, poor and unemployed women or men usually face lots of issues to access loans from traditional lending organizations and this is where the microfinance banks have come to their rescue. They provide women or men access to finance services and offer them easy loans, savings accounts, insurance, and several others as per their eligibility and requirement. Maharastra and Bihar have the largest number of microfinance institutions operating under the JLG or SHG hybrid model.

Salient points of microfinance

  • Creditors are from the low-income section
  • Loans comprise small amount – micro-credits or microloans
  • Loans are for Short duration
  • Loans given are without security or guarantee
  • Frequency of repayment is high
  • Loans are usually considered for income generation purpose

India is currently one of the most promising markets for microfinance in the world, by successfully running Microfinance institutions in lots, and having an outstanding market potential in the Microfinance Industry. An enormous number of the government and non-governmental organizations (NGOs) are running several projects to uplift the life of the unbanked and underbanked section with a significantly high success rate.

Recent upsurge seen in the Start-up microfinance industry has given a green signal towards sustainable growth, with the expectation to create a miraculous impact by the union of Machine learning and Artificial Intelligence, to be the key driver in the Next generation sustainable microfinance distribution model.

Download WordPress Themes Free
Download Best WordPress Themes Free Download
Download WordPress Themes
Download Best WordPress Themes Free Download
udemy free download
download samsung firmware
Download WordPress Themes
ZG93bmxvYWQgbHluZGEgY291cnNlIGZyZWU=
Previous Post

The Evolving Optimism of Stem Cell Technology as Smart Therapy

Next Post

Wheebox

Related Posts

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years
Blog

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

by admin
April 16, 2021
0

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years The state of Meghalaya is known for its breathtaking...

Top 5 Indoor Plants for Workplaces this Summer
Blog

Top 5 Indoor Plants for Workplaces this Summer

by admin
April 15, 2021
0

Top 5 Indoor Plants for Workplaces this Summer   View this post on Instagram   A post shared by Business...

Chaiti Navratra 2021 Everything You Need to Know to Celebrate Amid COVID.

Chaiti Navratra 2021: Everything You Need to Know to Celebrate Amid COVID

April 14, 2021
Ambedkar Jayanti 2021

Ambedkar Jayanti 2021: inspiring quotes and history of Babasaheb

April 14, 2021
Top 10 tips for successful long-term investing

Top 10 tips for successful long-term investing

April 13, 2021
Gig Economy

Gig Economy: Is it a blessing in disguise for India’s Startup Industry? 

April 12, 2021
Next Post
Wheebox, Global Leaders in Next Gen Hiring Assessments and Online Proctoring Solution

Wheebox

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Upcoming List of Top Indian Web Series of 2021 across Various Streaming Platforms

Upcoming List of Top Indian Web Series of 2021

April 9, 2021
Nelsonin Research Private Limited | Business Connect

Nelsonin Research Private Limited

October 5, 2019
The 10 most popular tiktok stars in the world

10 most popular Tiktok stars in the world

February 10, 2021
World’s Top 10 Richest Billionaires april 2021

World’s Top 10 Richest Billionaires 2021

April 16, 2021
BookMyPart_BigWin_Partners

BookMyParts Partners with PaisaDukan to Strengthen Supply Chain of Machine Spare Parts Industry

5
TechnoPilot®: Providing unique Network Security, Business Success mantras and healers by virtue of its veteran founder

TechnoPilot®: Providing unique Network Security, Business Success mantras and healers by virtue of its veteran founder

5
World’s Top 10 Richest Billionaires april 2021

World’s Top 10 Richest Billionaires 2021

4
Moksha Creative Services: Utilizing seasoned expertise in online visual content market to deliver magnum opus everytime

Moksha Creative Services: Utilizing seasoned expertise in online visual content market to deliver magnum opus everytime

3
Success story of Larry Ellison

Larry Ellison

April 16, 2021
Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

April 16, 2021
Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

April 16, 2021
Sushruta Surgicals Private Limited

Sushruta Surgicals Private Limited

April 16, 2021

Recent News

Success story of Larry Ellison

Larry Ellison

April 16, 2021
Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

April 16, 2021
Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

April 16, 2021
Sushruta Surgicals Private Limited

Sushruta Surgicals Private Limited

April 16, 2021

Recommended

Ting Works LLP - Business Connect

Ting Works LLP

July 16, 2020
The Most Important Business Changes Coming in 2020 - Business Connect

The Most Important Business Changes Coming in 2020

August 18, 2020

Most Popular

Success story of Larry Ellison
Success Stories

Larry Ellison

April 16, 2021
Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification
News

Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

April 16, 2021
Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years
Blog

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

April 16, 2021
Business Connect | Best Business magazine In India

Business Connect is a business magazine whose name is derived from Business Community which connects entrepreneurs, executive officers and VCs. With a mission to have one of the highest readership figures of senior-level executives and investors in India, Business Connect brings its edition on monthly basis.

Follow Us

Contact Information

Address: 701, DDA 2, District Centre, Janakpuri West, New Delhi-110058

Phone Number: +91-11-41065208, 42636209

Mail: abhishek@businessconnectindia.in

Recent News

Success story of Larry Ellison

Larry Ellison

April 16, 2021
Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

Realme Q3 Series Launch confirmed, expected MediaTek Dimensity 1100, specification

April 16, 2021
Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maidens Wasted Years

Meghalaya Chief Minister Conrad Sangma Shreds to Iron Maiden’s Wasted Years

April 16, 2021

Request a call back

  • About us
  • Why us
  • Guest writers
  • Career
  • Contact us

© 2020 All Rights Reserved by Business Connect India

No Result
View All Result
  • News
  • Magazine
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Healthcare
  • Testimonials
  • Launchpad
  • BCM TV

© 2020 All Rights Reserved by Business Connect India

Login to your account below

Forgotten Password? Sign Up

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In