Microfinance - the system of formal institutional credit to the viable, but non-bankable poor, is a pertinent tool in achievng financial inclusion of women and their empowerment. The system, which delivers financial credit to poor women through the Joint Liability Group/Self-Help Group system, has proven to be a major catalyst in achieving the goals of financial inclusion of the marginalized communities, by providing unsecured loans to women for engaging in income-generating opportunities.
Humana Microfinance provides loans to women members in impoverished rural regions of India for a range of income-generating activities with the objective of eliminating poverty.
Humana Microfinance uses the group lending model where poor women guarantee each other’s loans. Borrowers undergo financial literacy training and must pass a test before they are allowed to take out loans. Fortnightly meetings with borrowers follow a highly disciplined approach and timely schedule. Re-payment rates on our collateral-free loans are more than 99% because of this systematic process.
Humana People to People India has started Microfinance as a project in November, 2007 in Bansur block of Alwar district, Rajasthan to enable economic empowerment of rural women. Since then the project has grown into an independent entity impacting more than 1,10,000 women members by disbursing a cumulative loan amount of Rs.268 Cr. with a loan outstanding of Rs 71.7 Cr. till 31st March 2016.
Humana Microfinance has achieved high growth, both in terms of its client base and portfolio outstanding. As of 31st March 2016, Humana microfinance reached 1,10,000 members (45,234 active clients) who are organized in 10,878 groups in 1212 villages in eighteen districts namely Alwar, Sikar, Jaipur, Churu and Jhunjhunu in Rajasthan, Bareli, Badaun and Hathras, Mathura and Agra in Uttar Pradesh, Mohindergarh, Kurukshetra, Kaithal, Rewari and Gurgaon in Haryana, Haldwani and Udham Singh Nagar in Uttarakhand and Jamshedpur in Jharkhand. In the course, it has partnered with agencies like Rashtriya Mahila Kosh (RMK), SIDBI, NABARD, Indian Bank, YES Bank, IDBI Bank Ltd, Manaveeya Development and Finance Pvt. Ltd, Indian Grameen Services, Ananya Finance, Reliance Capital and State Bank of India.
Out of the total loan portfolio, nearly 87% is invested in animal husbandry and 13% in small scale business. The loans provided have helped them increase their monthly family income by an average of Rs.1,500 to Rs.2,000. The project has not only helped in income generation but also in gender equality and improved standard of living.
|Indicators||Data (As on 31st March 2016)|
|No of Villages Covered||1212|
|No of Groups ( JLG)||10878|
|No of Members||57,653|
|No. of Active Borrowers||45,234|
|Amount of Loan Disbursed (Cumulative) in Rs (Cr)||268|
|Portfolio at Risk > 30 Days||0.57%|
|Loan Outstanding in Rs (Cr)||71.7|
|Average Loan Size in Rs||22,076|