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SMBT(Sarvodaya Mutual BenefitTrust) Micro-finance to SHGs

Self Help Group Approach

Promotion of Livelihoods through Mutual Benefit Trust

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An SMBT needs to manage both its Financial andSocial Performance

MISSION

Social and financial performance

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Mission statement analysisSMBTs

Social performance

Social performance

Reach poorclients (who)

Provide services

that help reducepoverty (how)

Reduce client poverty(what)

Improve the well-being ofthe economically active poor

by providing long-term accessto quality financial services

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Conceptual framework:

The social performance pathwayadapted

Goals

Systems Service design and delivery

Objectives

Reaching target clients

Meeting client needs

In line with their

capacities

]

C

H

A

N

G

E

Alignment with social responsibilities & values

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Background: SMBT

Vision:Promote Sustainable CommunityInstitutions for Micro-finance and Rural

Livelihoods; Mission:To Alleviate Poverty among 100,000 Rural

Poor Families by 2014;

Current Operations: 15,000 Families in 3districtsof 2 states;

A Professional Agency (30 professionals);

Operational Vision: Promote Livelihoods Clustersfor the Poor

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Why SMBTs Economy of Scale

Negotiation of loans from mainstream FIs

Manage larger economic activities

Reduce Transaction Cost

Additional services can be housed

Cost of promotion of more groups can beminimized

Can become a pressure point for the women

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Goals and Objectives

GoalTo Promote cluster based Livelihoods through self sustainable

community based Institutions for rural poor women;

ObjectiveTo grow Mutual benefit trusts with women membership and

sustainable external linkages;

Time Frame

Three Years

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Registeration of 14 SMBTs(Future)

In future 14 such SMBTs would be registered and link with

financial Institutions

Around 2000 SHGs would be members of such SMBTs Insurance and Business development and IDS services

would be provided by such SMBTs to the SHGs

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Business status till 2010

Credit given 57883900 Rs.

Revenue generated to

SMBTs

948000 Rs.

No. of SHGs benefited 1394

No. of household

benefited

12249

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Women

SHGs

Women

Dairy

Groups in

Villages

Women

Rice

Groups in

Villages

BASIX

Chilling of milk in the

bulk coolers atsub-cluster level

Managed by NGO and

owned by producers

Transportationof chilled milk to

nearest market on

contract basis

Cluster

SMBTs

Entrepreneursto be responsible for

collection and

Transportation of raw milk

Veterinary

Service

Providers

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DAIRY INTERVENTION (Future)

A livelihood-cum-self help group of 12 to 15 women come

together for Livelihood activity through credit, saving and

inter-loaning Bank linkage for working capital and expansion

Bulk Coolers to improve marketability

Cluster association facilitates/ manages feed, vet care &

bank linkage

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Rice Intervention(Future)

A Village level association for collecting and aggregating

the Production of Rice

A Cluster level Infrastructure for Storage and warehouseing Bank linkage for working capital and expansion

Grading, Sorting and Packaging of Rice

Geogrophical Indication and Brand-building of local

Produce Linkages to export market

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THANK YOU

Prakash Choudhry