Micro finance - Really for the poor.

                                        Microfinance–Really for the poor.

Microfinance is not, but only, serving poor.

Three billion of people from total population of world lacked access to financial services, so extending banking facility to the individuals had the potential to transform economies and improve livelihood.

I want to clarify the meaning of Microfinance.

Microfinance is not only providing money to poor because only providing money and repay these loan is called business and every business has one motive "earning profit" from every possible way and earning money through poor means business with poor, then this is not Microfinance.

Microfinance is to the poor, for the poor not targeting the poor. 

Microfinance is social business. Providing money is prime motive but behind providing money it provide services like education, health, infrastructure, capacity building, skill generating, training etc.

I am strongly with Microfinance; seriously Microfinance is really for the poor.

If it is not for the poor then,

Why UN announce 2005 as International year of Microfinance?

Why in 2006 Mohammad Yunus get Nobel peace award?

Why in late 90's when South East Asia economy collapse then only Rikyat bank was in profit?

Why Indonesia come out from core poor?

Why Co-operatives, Commercial and Rural Regional Banks disbursed Rs 14,45,330 lakh to 15, 86,822 SHGs? (Source NABARD)

Why World bank take initiative in Microfinance?

Why SEWA provide solar lantern to its member? (Total 30,000 solar lantern distributed)

Why Pranab Mukherji proposed 'India Microfinance equity fund of Rs 100cr with SIDBI' in current budget?

Why Rs 500cr given for SHGs development fund?

How 10.64 million people income cross Dollar 1.25 per day in Bangladesh?

How Kudumbashree empowered 37 lakh members in Kerala?

How Kudumbashree cover 50% of household in kerala?

How 90% women member of kudumbashree gains their self confidence and stand against poverty in Kerala? (Source Kudumbashree website).

How "CHETNA" had 850 SHGs group with 16500 members spread across 110 villages in one year with outstanding loan of Rs 80 lakh and on time repayment rate is 100%? (Source "Microfinance redefining the future" written by V S SOMNATH).

How a small NGO "GRASS" had disbursed Rs 195 lakh to 213 SHGs.

How according to Malegam report MFI increases its portfolio like anything.

In North    -   88.52%

North-East -   163.62%

East         -    66.42%

Central     -    25.81%

South       -    37.09%

So all ‘WHY’ and ‘HOW’ prove and justify that Microfinance is really for the poor.

Behind this, floating IPOs in Microfinance is loan shark direction and this is not Microfinance road. You want to be loan sharks, go become loan sharks, and don’t call yourselves Microfinance. Don't confuse people.

Microfinance is a mission-driven, socially oriented direction that we want to establish and expand. (Mohammad Yunus)

If you want to do business with the poor with the intention of making money, don't claim this is Microfinance.

Please don't abuse the name of Microfinance.