TABLE OF CONTENTS ACKWOLEDGEMENT

. 3 ABSTRACT
.. 4 Overview of the
Microfinance Sector 10 Top 50 Microfinance
Institutions 12 Legal and Regulatory
Framework for the (MFIs) in India 15
Societies Registration Act, 1860 15
Indian Trusts Act, 1882 . 15
Not-For-Profit Companies Registered Under Section 25 Of Companies Act,
1956.. 15
Ratio Analysis............................................................................................................... 16 Micro
credit model 20 Business
Model of GRAMEEN Bank .. 21
About GRAMEEN Bank . 21
Working model of Grameen bank 22
16 Decisions .. 24
The Repayment Mechanism . 25
Criticism of Grameen Bank 25
Self Help Group (SHGs) .,26
Concept of SHGs ... 26
Need of SHGs . 26
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Structure of SHGs . 27
Joint Liability Groups (JLGs)......................................................................31
Difference between SHGs and JLGs 31
How JLGs formed . 32
JLG features .32
NABARD Initiative in Micro Finance .... 33
Introduction . 33
Role of NABARD . 33
Organization Structure 34
NABARDs OFFICES all over INDIA 34
Financial Santa Clause NABARD 35
How NABARD helps Banks and MFIs in augmenting? .35
How NABARD manages their repayment ratio . 36
How NABARD gives loan to the Institutions? .36
Business Model of SAKHI . 37
Introduction .. 37
Organization Structure .. 38
How SAKHI disburse the Loans? ... 39
How they charges interest? ... 40
How SAKHI raise capital? .. 40
Why SAKHI charges such a high rate of interest (18% p.a)? ..... 40
Is government waiver plan effected there Institution? . 41
Business Model of MAS Finance . 43
Introduction . 43
Role and Function . 43
Organization Structure 44
How MAS FINANCE raise capital? ..45
How MAS FINANCE manages their repayment structure . 45
MAS FINANCE has strange way of providing loan? .. 45
Why MAS FINANCE charges such a high rate of interest (25-26%% p.a)? 45
Any default case regarding to repayment of the loan? ..45
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Credit institutions as a Political tool: Debt relief in India . .46

Product Design . .48 How
MFIs manage their repayment and Risk management . .49
What is Risk Management? .49
Benefit of Risk Management ..49
Financial Risks 51
Liquidity risk . ..52
Operational Risks ..53
Strategic Risks .53
Why micro finance provides loan to the women only 55
Why MFIs being critized for providing loans to the women only? .55
How the recent slowdown affects the MFIs ..57
How the MFIs find opportunities within the crisis ..58
MFIs being criticized because of high interest rate ...59
Why Microcredit Rates are so high? ...59
Inappropriate comparison ...60
Rate Ceilings: Not the Answer . ..61
SWOT Analysis of micro finance . 64 8

SKS Case study...66

Development of Organization . 66
Sources of Capital .. 66
Organization & Management Analysis 68
Interview of end users .70 Future
of Micro Finance.72
Recommendations and Suggestions . 74
Conclusion ...75
References .......76 9

List of Illustration (Figures) Top fifty MFIs (Micro Finance Institutions)

..12 Comparison among the Companies
.18 Comparative Analysis of Microfinance Services
Offered To the Poor ..28 Year wise increase of SHGs and their finance
.....29 Growth of linked SHG's in 13 Priority States
..30 Organizational structure of NABARD
.34 NABARDs offices all over India
....34 Organization Structure of SAKHI
.38 Business plan projection of SAKHI
..41 Projected balance sheet of SAKHI
......42 Organization Structure of MAS Finance
44 The Corposol/Finansol Crisis
....50 Major Risks to Microfinance Institutions
.51 General Impact of Ceilings on Microcredit Interest
Rates ..62 Operation and Financial function of
SKS 67 10