Microfinance in LucknowMicrofinance is a form of financial services for those who want to start their own ventures own business. It is also is seen as a boon for those who don’t have access to banking and its related services. The basic aim of Microfinance is to provide help to poor people without any security. The formation of self-help group among women in India has led to the opening of more Microfinance institutions in India. The concept to Microfinance as a bank came from Muhammad Yunus winner of Nobel Prize who founded Grameen bank in Bangladesh. In India NABARD followed the idea and formed Microfinance with NGOs, SHG and banks.
Microfinance is developed in a big way in India and it has become a movement in India. The SHGs which started their movement in rural India has spread its wings to cities. All metropolitan has now SHGs and Lucknow has followed suit. Microfinance is defined as giving all kinds of services given by commercial banks such as savings bank accounts, insurance and providing fund and credit to poor people and helps them to improve their living standards. The main points of Microfinance is this
Giving loans to poor without any security who are in below poverty line or (BPL) self help group or SHG members can also avail loan maximum loan amount is Rs 25,000 and the rules are decided by NGOs. On the above guidelines the microfinance institutions operate in Lucknow and in India. Many individuals and SHGs availed loan facilities. They are prompt in repaying their loan and come out of poverty line.
Microfinance Companies in Lucknow
All scheduled Microfinance companies which complied with the rules and regulations formulated by Reserve Bank of India (RBI) have their offices in Lucknow. Some companies have their head offices in Lucknow. Some of best known Microfinance companies have opened their branches in Lucknow and offer their services.
- SKS Microfinance Company (SKS)
- Cashpor micro credit (CMC)
- Spandana Sphoorthy Financial ltd (SSFL)
- Share Microfin Limited (SML)
- Asmitha Microfin Limited (AML)
- Fusion Microfinance Limited (FML)
- Annapurna Microfinance Private Limited (AMPL)
- Bandhan Microfinance Limited (BMFL)
- Utkarsh Microfinance private Limited (UMFL)
- Sahara Utsarga Welfare Society (SUWS)
These Microfinance companies are regulated by RBI and working under the guidance of experts in banking industry who have many years of experience in the field. These Microfinance companies have good base among customers and have enough capital to function. They have excellent record of good management control and audit system.
SKS Microfinance is working under the regulations of RBI (Reserve Bank of India). Its main aim is to remove poverty and work for the upliftment of poor and to improve their living standards. SKS Microfinance was established in 1997 with its headquarters in Hyderabad. Now SKS Microfinance operates in 19 Indian states. According to CRISIL report SKS Microfinance is adjured as the best Microfinance Company in India and has largest customers in India with more branches and loans.
SKS charges an annual interest rate from 26.7% to 31.4% for its services. With an aim to improve the living conditions of the people in Uttar Pradesh, SKS Microfinance opened its branch in Lucknow. The company has an ambitious plan to serve the poor and in particular women. SKS Microfinance follows a standard process of processing loan requests. With their active work among women Self Help group (SHG), the company has built an active customer base in Uttar Pradesh and in particular among poor in the city of Lucknow.
The main customers of SKS are street vendors, women and small business holders. They also give training to SHG members in their trade and also support their products through marketing. Using SKS Microfinance many people have come out of poverty and improved their living standards. One particular point with the low income people is that they are prompt in repayment of loans and it is the strength of SKS Microfinance Company.
SKS Microfinance Company has entered stock market in the year 2010 with an IPO. The main aim of the management is to finance their growth thus providing assistance to poor and to help them to come out of poverty. SKS Microfinance has overcome all the hurdles and the customer support speaks for its growth.
Economy of Lucknow
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