Operations in Healthcare 31

Mr. Sarvesh Chaturvedi Management Associate (Operations) Satin Creditcare Network Limited

Keeping in mind that Lakshya focuses on the operation, I have decided to share insight on how the microfinance organization operate and the challenges that covid has posed to the whole micro finance sector. Before we get to know the operational challenge, lets first start with an understanding of Micro finance.

Microfinance has been present in India for a very long time in informal formats such informal money lending, chit-funds or rotating savings, etc. Microfinance sector is a sub-stream of Finance sector. It covers a lot of services such as, pension plans, cheques and fund transfers for the economically challenged segment of the country. Those people who were traditionally not provided access to financial services through banks mostly because of lack of collateral, but such segment of people can have these services with the help of microfinance institution. Further there are various model on which microfinance institution works. In the Self-help group (SHG model) model there are selfgoverning social bodies consisting of 10 to 20 members which mobilize a fund through its members or from a bank; They advance loans to its members or others keeping in mind their requirements after taking the united opinion of the group. The non for profit and the government organization like NABARD follow this model. Joint liability group (JLG model) In this model, there is a collective dependability. Centers are formed with the help of groups and the group formation is with the help of members. 5-8 members per group and 4-5 groups per center constitute the most preferential grouping. The number of groups per center varies from MFI to MFI.