Max United Foundation

MICROFINANCE IN MAX UNITED

Inspired by Prof.Mohammed Yunus-who brought socio-economic reformation in Bangladesh, it was under the leadership of Sri. Jose A. Kuriakose initiated very small level microfinance activities at Ernakulum district, Kerala during the year 2015-16 with the help of Mr. Anish John K Provided small loans to some SHG groups and collects the amount on weekly basis. “Grameen” model were relevant during the initial year. As the initiative programme success grew in size they decided to start the activity in larger size as legally through an NGO. With the support and advice of Mr. Joseph Antony, Ex-LDM, Bank of Baroda and Elby Thomson, a Microfinance Expert. they established a new NGO/MFI at Kothamangalam in January 2017. Select JLG model of microfinance to the future expansion.

Why Max United Starts Microfinance?

Microfinance has proved to be one of the most powerful engines in the global effort to end the crushing poverty that deprives hundreds of millions of the world’s people of sustenance and hope.

It is based on the idea that if you give a poor person a very small loan for use in a self-employment venture, you will get an amazing return on your investment. The borrower will not only work to end their poverty, but they will also improve the life of their family and strengthen their community.

Microfinance programs have given many of the world's poorest people the opportunity to lift themselves out of poverty altogether. The increases in household income allow borrowers to provide greater quantities and more nutritious foods to their families, to educate their children and to improve their houses.

Here are nine benefits of microfinance:

Access Banks simply won’t extend loans to those with little or no assets, and generally don’t engage in the small size of loan typically associate with microfinancing. Microfinancing is based on the philosophy that even small amounts of credit can help end the cycle of poverty

Better loan repayment rates Microfinance tends to target women borrowers, who are statistically less likely to default on their loans than men. So these loans help empower women, and they are often safer investments for those loaning the funds.

Extending education Families receiving microfinancing are less likely to pull their children out of school for economic reasons.

Improved health and welfare Microfinancing can lead to improved access to clean water and better sanitation while also providing better access to health care.

Sustainability Even a small working capital loan of Rs 5000 can be enough to launch a small business in a developing country that could help the benefactor pull themselves and their family out of poverty.

Job creation Microfinancing can help create new employment opportunities, which has a beneficial impact on the local economy.

Empowering Unlike traditional charity, microfinance is an investment in individuals and communities who are working hard to break free from the cycle of poverty. Microfinance relies upon the entrepreneurial spirit of clients who are starting businesses, employing their neighbours and educating their children. Opportunity International believes that our clients, when equipped with the right resources, can work their way out of poverty. We simply provide them with the capital and skills they need to get started.

Sustainable When a client pays back a loan, that money is lent to someone else, extending the life and impact of each rupees. Opportunity International's loan repayment rate is 98% - so money is constantly recycled, multiplying the value of every rupees donated.

Successful Over our 40+ year history, we have seen clients' lives transformed because they were given access to financial tools and training. Children have been able to go to school. Farmers have received higher quality inputs, leading to increased yields. Mothers have been able to feed their families. Business owners have employed their neighbours. Individuals have transformed their communities. A small investment, a savings account or an insurance plan can be the spark for permanent transformation in the lives of those working their way out of poverty.

Characteristics of Microfinance

Growth of Microfinance Volume Worldwide

In 2017, the lending volume has reached gargantuan sizes in comparison with 2004. The diagram below shows the data from around 2000 institutions providing financial services. There are actually more than ten thousands microfinance institutions that lead one to think the global and Indian volume is even higher.