ACCESS FOR FINANCE STILL FAR AWAY FOR POOR

Sa-Dhan, the association of community development finance institutions and MFIN, today organized the 'Interface on Financial Inclusion' to bring together women from across the nation to discuss their experiences with microfinance. With more than 60% of the country's population outside the reach of the formal banking sector, financial inclusion and financial literacy that can result in inclusive growth and human development, has become a crucial mandate. The event saw a vibrant discussion between women and senior officials from policy making bodies, around the financial challenges being faced by women in rural areas and the immensely positive experience they have had with microfinance. Access to finance is still tough for the poor as they face several problems starting from the attitude of a banker towards the poor, opening an account, collateral need and cumbersome paper work for getting a loan, distance from the bank branch, indefinite number of visits, transportation cost, wage loss etc. To address these problems, microfinance sector has stepped up as a viable financing option for the poor by providing last mile connectivity for banking services. Shri Jagadananda, Chairman, Sa-Dhan said, "There is no shortage of pro-poor options, policies, schemes or institutions in the country, the challenge is achieving last mile connectivity. Microfinance is playing a critical role in providing this last mile linkage in terms of financial services for the poor. The upcoming MFI Bill, we hope will further streamline the microfinance sector and ensure smooth functioning."

Mr Mathew Titus, Executive Director, Sa-Dhan said, "The Interface on Financial Inclusion is an attempt to bring voices and concerns from the community to a platform that can directly impact public policy. The demand for financial services for the poor in terms of savings, pension and insurance, is a robust one but the institutional structure required has a long way to go." An SHG member from Bihar, said, "We had a small business which was in trouble. A friend introduced me to microfinance. Facilities like loans and insurance started reaching us. This empowered us and helped us become self reliant." "Everything today requires money - be it business or the education of our children. Associating with the group and microfinance has encouraged me to develop my skill and teach it to others so that all of us can progress together," added another participant. The event took place in New Delhi and was attended by over 200 women. Also present were, Shri Shivkumar Chanabassappa Udasi, Hon. Member of Parliament, and representatives from the Ministry of Finance, NRLM, SIDBI, PFRDA, NABARD, academia and the developmental finance ecosystem. Sa-Dhan is a common platform for key microfinance practitioners and community development finance institutions in India. Website: http://www.sa-dhan.net Micro Finance Institutions Network (MFIN) is an association of Non-Bank Finance Company Micro Finance Institutions (NBFC-MFIs).