Transcript Mimo Finance
Mimo Finance
Empowering Women, Changing Lives
About Mimo Finance
• Vision: – To reach one million households in India by March 2015 • Mission: – To strengthen the economic capacity of urban and rural micro and small business operators to ensure their economic self-reliance.
• Values: – Integrity, Transparency, Accountability • • • • 21 Branches 47,728 loan clients 106,198 Insurance clients 219 Employees • Uttarakhand – Dehradun, Haridwar • Uttar Pradesh – Saharanpur, Meerut – Bijnor • Himachal Pradesh – Sirmour • Haryana – Yamuna Nagar
Sirmour (H.P) Yamunanagar( Haryana) Saharanpur (U.P)
Area of Operation
Dehradun (U.K) Haridwar(U.K) Bijnor (U.P) Meerut(U.P) Mimo Finance Operation
Board of Directors
1. Manab Chakraborty ex-UN civil servant, management expert 2. Venkatram Reddy Reddypally Bellwether Fund representative 3. Swaminathan A. Aiyar Eminent economic journalist 4. P. Murali Srinivas Mgt. Consultant and Entrepreneur 5. Sitaram Rao Ex-CEO SKS, Hyderabad 6. A. Ramanathan ex-CGM Microfinance NABARD • Promoter/CEO • Director • Angel Investor • Angel Investor/COO • Independent Director • Independent Director
History
• Mimo Finance acquired a Non-Banking Finance Corporation (NBFC) in March 2007 and commenced operations.
• Shareholders: Bellwether Microfinance Fund as Venture Capitalist and three Angel Investors.
• Financial relationships have been established with FWWB, HDFC, ABN-Amro, Axis Bank, Maanaveeya- Oikocredit, Uttarakhand Govt., DCB, SIDBI, NABARD, Reliance Capital, Citibank, and Indian Bank. • In July 2008, the institution was awarded a rating by CRISIL of MF4 (1-8 scale), placing it in 20% of all MFIs.
Organogram by Functions
Audit Committee Board Advisory Committee CEO Finance CFO Operations COO Accounts Operations JLG HR Training Internal Auditor Credit Appraisal
Technology CTO
MIS Fundraising Operations Meso
Process Audits Market Research
Legal Compliance
Risk Mgt
Major Frauds Admin
Operational Highlights (May 2009)
No. of Groups No. of Active Clients/Loans No. of loans disbursed Loans disbursed (in Rs. millions) Loan Outstanding (in Rs. millions) No. of Districts No. of Branches No. of Staff 13,242 47,728 67,593 566.08
268.418
7 21 219
Clients Profile
Percentage of Women Clients Scheduled Tribes Scheduled Caste Muslim Clients Income - below $2 per day Illiterate 99.56% 4% 46% 37% 54% 44%
Loan Utilization Purposes
Small Business Agriculture & Allied Activities Housing Transportation Artisan and Traditional Occupation Education Emergency Consumption Micro-Enterprises 60.71% 23.52% 9.39% 4.24% 1.08% 0.63% 0.20% 0.13% 0.07%
Performance Indicators (May 2009)
Current Repayment Rate MFI Benchmark >95% Portfolio At Risk (PAR) >30 days 5%> Operational (OCR) Operational Sufficiency Cost Ratio 20%> No. of Active Loan Clients per Field Executive 300 Self 100%+ Capital Adequacy Debt-Equity Ratio Total Outside 10%+ 8:1> Mimo 99.56% 0.85% 15.9% 334 101% 15% 5.20:1 Differen ce +4.56% +4.15% +4.1% +34 +1% +5% +2.80
Loan Outstanding (May 2009, in Rs. Million)
Axis Bank HDFC Bank ABN-Amro Indian Bank Maanaveeya Holdings Reliance Capital Uttara Micro SIDBI DCB Citibank FWWBI HDFC Housing Corp Total 26.50
19.70
13.75
3.00
20.00
16.30
30.00
38.81
4.00
42.30
31.20
5.00
250.56
Capital Structure
Name No. of Shares % of ownership Manab Chakraborty, Promoter Venture Capital, Bellwether MF Trust 531,500 1,712,500 19.42% 62.56% Angel Investors -3 Persons 418,230 15.28% Employees -2 Persons Total 75,000 2,737,230 2.74 % 100.00%
Products
JLG Loans
• 5 women in a Group • No collateral • Loans for Income-generating activities • Selection criteria – Identity/residency proof, solidarity and coherence of members, track records of applicants, compulsory training and Group recognition test.
• 50 week loan term.
• Loan range: Up to Rs. 10,000 • Interest: Flat 15% • Loan processing fee: Flat 3%
Micro-enterprise Loans
• Individual lending • Collateral: Machinery & Raw material • Guarantor: One • Selection criteria – Identity/residency proof, business performance, track records of applicants, compulsory financial literacy & book keeping training.
• Term: Up to 2 years, repayment monthly.
• Loans range: Up to 50,000 • Interest: Flat 15% • Loan processing fee: Flat 3%
Home Improvement Loans
• 3 women in a Group • No collateral • Loans for renting purposes • Selection criteria – Identity/residency proof, solidarity and coherence of members, track records of applicants, compulsory training and recognition test.
• Term: Up to 2 years, repayment monthly • Loans range: Up to Rs. 35,000 • Interest: Flat 15% • Loan processing fee: Flat 2%
Max Vijay - Gullak (Pilot)
• SAVINGS – Long term planning – 7.5% to 8% return – Can top-up with as less as Rs 10 – 24/7 - next door service by Mimo Retail Agents – 10 year term • INSURANCE – Natural death: Up to 5 times – Accidental death: Up to 10 times – No renewal premium concept – No lapsation concept – 10 year term
Field Processes
Field operations - Structure
Head Office Regional Office • One per 9 hub offices • Operations Monitoring • Internal Quality Control • FE recruitment • Accounting and MIS • Audit Hub Office Spoke Office Center • Manages 6 spoke offices • Accounting • MIS • 2500+ clients per office • Group formation • Disbursement • Collection JLG • 5 Groups to a Center • 5 clients to a Group
Group formation
Compulsory Group Training (CGT)
Group Recognition Test(GRT)
Disbursement
Center Meeting - Repayments
The Way Forward
Future Expansion
Target “graduates” and non-borrowers Lower middle class Expand into underserved geographies Poverty levels Poor Very Poor Credit Target vulnerable single-women households Insurance Micro Pension Products Micro Equity Nepal, Punjab , J&K MP, Chattisgarh, Assam Uttarakhand, UP, HP, Haryana
Projections for Mar 2009-2012
No. of loan clients Loan outstanding in million Avg. loan size (JLG) Interest rate (flat) 2010 119,735 269,790 470,147 811 2011 2,211 2012 4571 12,511 15% 15% 15%
New Fund Requirements (Rs. Million)
Year 2010 2011 2012 2013 Debt 657 1,672 3,306 5,939 Equity 153 535 1,137 1,639
Challenges
• Debt Financing • Competition • Improvements in accounting and MIS software • HR: Find skilled staff, train and keep them; develop right incentives • Quality and Impact Control • Complement microfinance with health and education interventions
Presence of Other MFIs in Operational Area Mimo District
Dehradun (UK) Haridwar(UK) Saharanpur(UP) Meerut(UP) Bijnor(UP) Sirmour(HP) Yamuna Nagar(HY) XXX-High Threat XX-Moderate Threat X-Low Threat ()-Not Present X X X
SKS Ujjiv an Disha Satin
XX XX X X XX XX X XX XX
Basix
X
Share
X X
Non financial service Ultra poor programme
Non-Financial Services
Target Group Targeting Method Organisation Financial services Youth and street children ready for skill development Vulnerability assessment Partners in Prosperity Society Grants followed by soft loans Blindness Prevention Visually handicapped Active targeting based on visual tests Partners in Prosperity Society Grants, donations from Mimoza Business Development Micro and small enterprises Geographic and cluster targeting Mimoza Enterprises Finance Pvt. Ltd.
Individual loans
More Information
www.mimofin.com
www.mixmarket.org
www.vimeo.com/3294309 Mimoza Enterprises Finance Pvt Ltd #3, Turner Road, Clement Town, Dehradun - 248002, India [email protected]