Vision Building-a Sure Way to Facilitate Sustainable institutions for the Poor

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Innovations in Microfinance

Volume 6

Issue 2

November 2005

From the Editor's desk

Innovation is the fundamental premise of sustenance and growth in any sphere of life.

The current microfinance movement can be traced to a few innovations started by

some spirited individuals and institutions in different parts of the world as the formal

financial system failed to provide access to the socio-economically disadvantaged

communities. Now it is a wide spread movement in many countries - both developed

and developing - which is a crucial component of the fight against eradicating

poverty.

The Indian microfinance movement has also been characterised by innovations

since its inception. Given the spread and depth of the programme and the country

itself, the movement is fairly diverse in terms of operational models, legal forms and

financing structure. Innovations have also been done on the aspects of products

and processes for taking the services to the doorsteps of every possible person.

In this issue, we have tried to capture some of the innovations that organisations in

various parts of the country have set into motion in order to meet the requirements of

their members as well as make the microfinance operations robust and sustainable.

It is the vision of an institution that drives it continuously towards excellence. Self-help

Contents

groups (SHGs) and their federations though small, are institutions in themselves and

would do well to have a vision of their own to have a long life and be relevant to

their members. APMAS, Hyderabad, a technical support organisation in Andhra

Vision Building-a Sure Way to

Pradesh has carried out this exercise in the state and wants to take it forward by

Facilitate Sustainable institutions

facilitating it for every community institution.

for the Poor

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The SHGs also need to be aware of their own progress through objective parameters

at regular intervals. The parameters as well as the process of their measurement have

Money Transfers between

to be simple enough for the members to participate fully, understand its repercussions

Orissa and Gujarat:

and then take corrective action. Ibtada, an organisation based in Alwar, Rajasthan

A unique microfinance product

has developed a tool to do this and has found it useful for self-appraisal of the groups.

for poor migrant workers

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Organisations have to constantly innovate their products and processes to suit the

requirements of members. It is in this context that BAIF, through its microfinance division,

Rickshaw Bank: an initiative

Vikasrath and Hanuman Van Vikas Samiti in the Udaipur, Rajasthan have made their

for asset-based microfinance

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products member-centric through improvisation to meet the livelihoods requirements.

Centre for Rural Development has evolved a product on the basis of asset-based

microfinancing - Rickshaw Bank. The Bank provides rickshaws on credit to the migrants

Peer Group Evaluation-An

and urban poor for increasing their incomes, which dramatically reduces the

Innovative Process for Group

exploitation levels common in this trade. Adhikar has developed a process for money

Quality Maintenance

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transfer for the migrant workers, who originate from Orissa and work in the state of

Gujarat.

Designing Products to make the

Hope you will enjoy the collection of write-ups and continue innovating to reach the

Programme Member-centric

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unreached.

Livelihoods through Credit

We eagerly await your feedback and contributions to make the 'Patrika' a platform to

- Dhruva's Micro finance

share and debate.

experience

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Mathew Titus

Published by Sa-Dhan Microfinance Resource Centre

12 & 13, 2nd Floor, Special Institutional Area, Shaheed Jeet Singh Marg, New Delhi 110067

For private circulation only