How can we promote microfinance in urban India?

Making debtors of the rural folk is not the way to make them self-reliant. It has failed in India because the bureaucracy in banks and the government are insensitive.

The very procedure of marking a debt an NPA after a mere three months of default is anti-people in a slow society like ours. When the mindless bureaucracy handles such procedure, suicides happen. Rural lending in India is thus a killing business.

What the small farmer does is a service to the society. The society in gratitude, pauperises him by demanding interest from him for the small loans that he helplessly takes. And the recovery machinery refuses to write off these small debts while they enthusiastically waive loans of crores to big business. Auto loans are available at lesser interest than most farmers' loans.

If rural India is to be saved, banks must be banned from our villages.

It important to build a knowledge base on the dynamics of urban poverty and microfinance and catalyse sharing of ideas among those engage with urban issues in general and microfinance in particular. This can lead to a sector-wise appreciation of the specific needs, available options and emerging challenges that urban microfinance players in the country encounter, while making them more innovative and responsive to the realilities of the urban sector.

i think government & private sector come to together that time i pramote urban india

Yes. as truly said, micro finance will play major role in success of rural development.  Farm production has become costly, the small and marginal farmers not able to cope with the repayment system as the yield on production not creating surpluses.  Add to this, Government also plays destructive role in waiving of debts with an intention to help those to recover from debt trap but it creates anxiety in the minds of genuine borrowers.  Micro finance with collective accountability like self help groups will be successful one.  Moroever, self help groups are successful only among women and it was not tried among men.  Small Banks with adoption model for development of selected villages can  do better job.

Choradia Rupiya Mandi, is in the business of livelihood funding with twin objectives of maximizing investors value and empowering individuals by helping them become entrepreneurs.

At Choradia Rupiya Mandi we not only provide them with fish but also give them the fishing rod. The organization at the primary level is involved in Vehicle finance.  We specialize in making credit accessible to the social group whose livelihood depends on the vehicle.

These are typically the guys who will not shy away from paying 10-15% per month as interest on hand loans. We are trying to plug this gap by not only providing them with easy finance but also providing them a source of livelihood that not only feeds a stomach but an entire family.

We are aware of their difficulties when it comes to accessing credit to buy a vehicle to feed the family or to arrange quick money to pay as advance to rent a house or it could be making money accessible for a marriage at home or clear hospital bills of a loved one admitted.

Some ask us why give money against a HP entry and why not without it. This is because we realize when something is for free it is human nature to waste it. Hence by creating our ownership on the asset until the credit is cleared we are making it sure that the monies are being utilized responsibly and for the purpose intended.

And that is why we unabashedly say we are Creating entrepreneurs and in the process maximizing not only shareholder’s value but also enriching the stakeholders

For further information mail me at narendra.choradia@gmail.com. Visit us at www.rupiyamandi.in

Microfinance helps in starting a business/venture to a class of people who have skills but are unemployed/underemployed due to lack of opportunities in the job market, but it has the biggest challenge of security of money lended. It gives focus to a class of people who can start a small business and may end up living better after couple of years.

The recent study by World Bank shows that if women are engaged/involved
in business, the success rate is more as they are more responsive to the business activities and dedicate themselves to the growth of business in welfare of their family.

Women tend to repay the loans and tends to benefit the whole family. So, chances of business getting successful and hence repayment of money borrowed is more assured with women being engaged in business.

Also, developing countries where employed women are more, the economic advancement has taken place and lives of people have improved to a considerable extent.

We know that these colonies have Local promoter like, the "kiriyana waala", postmans, Post office staff and many more who are quite interactive with urban poor...... so utilise their power to firstly understand the reliability of a customer and then promoting an option of micro finance to them..... when in need.....

New generation must be given proper finance, resources and opportunity. Big financial insttituions must promote microfinance by providing large loans on reasonable interest rate. The financial institutions should provide them with adequate resource and also by promoting existing cottage industries.