microfinance_toronto - Lions Clubs International
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Transcript microfinance_toronto - Lions Clubs International
Lions Clubs International Foundation
Agenda
Introduction of Microfinance & Social Business concepts
by Neville Mehta, Intl. Secretary, ISAAME, LCI
Remarks by AP Singh, Past Intl. Director
Remarks & video from Mr. Binod Chaudhary, Chairman
of Chaudhary Group (CG) & CG Foundation
Questions + Answers
Speakers
Lion Arvinder Pal Singh
International Director (2004-2006)
District: 322-B1
Home Club: Calcutta Vikas (45734)
Lion Since: March 1984
Lion A P Singh has been credited with 13 International President’s medals and
the highest award ‘Ambassador of Goodwill’. He is a Progressive Melvin Jones
Fellow and a Major Gift Donor for CSF II. He is also the First Lions Clubs
International Foundation Heritage Club member of 322-B1.
He has regularly served as a faculty on more than 25 LCI and Regional
Leadership Institutes. His latest contribution in extending new initiatives is
the establishment of Eastern India Lions Leadership Academy which includes
video conferencing facility in all districts of MD 322. He has also been
organizing webinars to reach out to clubs in furthest corners.
The Lions of Kolkata (India) have accepted Microfinance under the
leadership of Lion A P Singh and are moving ahead as this can have a radical
impact on facing the menace of poverty and changing lives of people.
Speakers
Mr. Binod Chaudhary born on April 14, 1955 is a
Nepalese businessman, industrialist and philanthropist. He is the
current Chairman of Chaudhary Group (CG), a conglomerate that
consists of nearly 80 companies. Mr. Chaudhary is also the first Nepal
billionaire as listed by Forbes. Besides, business, Mr. Chaudhary has
been involved in various other government and social sectors. He
worked as a member on constituent assembly and parliament of Nepal
from April 2008 to May 2012. His CG Foundation works for social
welfare and he often contributes in the areas of art, music and
literature as well. He is also a former Leo member.
What is Microfinance
It is estimated that approximately 2.5 billion people around the world live in poverty,
struggling to survive on less than US$2 a day. Yet for people living in poverty, it’s all
they have to provide for the needs of their whole family. Families living in this kind of
poverty struggle to afford even the most basic of items. They are unable to afford
adequate meals, clean water or an education. They go without proper shelter,
transport and even medicine when they are sick.
The Solution: Microfinance…
Microfinance refers to an array of financial services like loans made available to poor
entrepreneurs and small business owners who have no collateral and wouldn’t
otherwise qualify for a standard bank loan. Most often, microloans are given to those
living in still-developing countries who are working in a variety of different trades,
including carpentry, fishing and transportation.
The goal of micro financing is to provide individuals with money to invest in
themselves or their business to help get them out of poverty. When providing loans,
micro financing institutions do not require collateral, but do insist that the loan is
repaid within six months to a year.
MICROFINANCE AND ITS RELEVANCE IN
POVERTY ALLEVIATION
Helps poor households meet basic needs
Protects them against risks.
Provides working capital for income generating activities.
Provides additional capital for expanding business.
Helps in asset creation
Provides employment opportunities.
Save poor from the trap of money lenders.
July 6th 2014
Toronto
CANADA
Micro Finance & Social Business
A reflection on the topic by
Mr. Binod Chaudhary
Microfinance
"Lasting
peace cannot be achieved unless
large population groups find ways in
which to break out of poverty„
Prof. Mohammed Yunus
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Microfinance
Micro Finance
Grameen Bank
Financial source
Clear definition of poor
no collateral needed
Maximum 20 % (int. avg. 30)
Focus on the poor
Lending groups
2 main models
Strong decentralized structure
Relationship based model
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Real money (M1)
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History Nepali Micro Finance
1960: first appearance for flood victims
1970: first scale approaches: failed
1980: Social approach: group guarantees
1990: institutionalization: rural development banks
1995: commercialization started: NGO MFI
1998: Regulations of MFI
2003: Banks and Finance Institution act
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Variety of players
Models
Cooperative
SFLC
Grameen
Wholesalers
RSRF
Commercial Banks
RMDC
SKBBL
Key MFIs
35 MFDB
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29 FINGO
16,854 SACCOS
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Poverty Line
25 % below
Poverty
Line
33 %
reached by
MFI
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Success-Stories in Nepal
2.5 Million families reached
Maximum 1500 $ without guarantee
Total loan disbursed USD 1.67 billion
Loan recovered ratio 99 percent
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Challenges Include
Lack of Risk Management
Inadequate Use of ICT
Delivery methodology not considering geography
Poor financial literacy
Lack of demand and supply in wholesale fund
Limited penetration in hilly regions
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Microfinance in context
SB
Investment-Funds
Social Business SeedCapital
Microfinance
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Social Business
Next step after Microfinance
Empowers leaders
‘scaleable’ organization
Considers a bigger group of stakeholders
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What is Social Business?
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What is Social Business & NSB
Animated Video
https://www.youtube.com/watch?v=gi5biNDk1Mc
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Why is it different?
Skills to grow
Refined skills and scalability
Macroeconomic more sustainable
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