by Sarah Knapp -

MICROCAPITAL STORY: Indian Government Uses Its Bank To Attack Interest Rates

The government of India and the Asha Community Health and Development Society, in conjunction with the Life insurance Corporation of India (LIC), and public sector banks Andhra Bank, Bank of India, Canara Bank, Indian Overseas Bank, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank and Vijaya Bank recently launched a Pilot Microcredit Scheme. The plan will allow slum dwellers in southern Delhi’s Ekta Vihar slum to apply for loans from the participating banks, with a fixed interest rate. It will also start an initiative that aims to connect every family in the area with a “no frill” bank account, extended financial services and affordable life insurance from LIC. MicroCapital recently reported on the LIC’s initiatives in expanding its micro-insurance services here.

by Sarah Knapp -

MICROCAPITAL STORY: Microfinance Brokerage Sites Rangde.org and dhanaX.com Launch in India Following Kiva.org

Two new microlending sites, Rangde.org and dhanaX.com were launched this year to facilitate loans between social investors and low income borrowers in India. Initiated by U.S.-based kiva.org in 2005, micro-lending websites allow individual lenders to invest in individual borrowers via associated microfinance institutions (MFIs) that disperse the loans. These sites appear to be similar to “peer to peer” (p2p) lending sites such as US-based prosper.com, but in reality, are connecting individual borrowers and lenders through a third party (the MFI). Though Rangde and dhanaX also act as microfinance brokers, they are distinct from Kiva because they only allow investments by people with Indian bank accounts. MicroCapital has done extensive coverage on the development of kiva.org including coverage of Kiva’s launch, growth, and operations as a non-governmental organization (NGO).

by Sarah Knapp -

MICROCAPITAL STORY: India’s National Housing Bank and Repco Bank’s Foundation for Micro Credit (RFMC) launch a $23.3m “Housing Microfinance Initiative” for Rural Self-Help Groups

The Government of India’s National Housing Bank (NHB) in partnership with the Repco Foundation for Micro Credit (RFMC), a subsidiary of the Indian Government’s Repco Bank that organizes the banks Micro Credit Scheme, recently launched a “Housing Micro Finance Initiative”. The initiative will provide loans to assist members of rural self-help groups in renovations and additional construction on their homes. NHB began providing housing micro-loans in 2004, yet they were mainly directed towards urban slum dwellers. Now, NHB and RFMC have the equivalent of USD 23.3 million to invest in a rural housing microfinance program and plan to use the equivalent of USD 2.3 million in credit to launch the program this year. The initiative will initially run as a pilot program in the state of Tamil Nadu.

by Anthony Busch -

MICROCAPITAL EVENT: The School of Applied Microfinance (SAM) in Kenya to Hold Annual Training Program Designed for Managers and Consultants of Microfinance Institutions (MFIs) in Africa, the Middle East, and the Indian Sub-continent

Practical Skills and Tools for Microfinance Managers & Consultants

September 8-19, 2008, Sarova Whitesands Beach Resort & Spa, Mombasa, Kenya

Incorporated in Nairobi, Kenya, the School of Applied Microfinance (SAM) will hold its annual two-week training program in September, which will focus on capacity building for employees and partners of microfinance institutions (MFIs) located in Africa, the Middle East, and the Indian Sub-continent. The curriculum will include daily plenary presentations on macro issues such as e-banking’s effect on microfinance and the ongoing commercialization of the sector. Each day, the plenary presentations will be followed by two technical training sessions chosen by the participants from a list of 14 topics. The technical training sessions, which are all still open according to SAM’s web site, will include subjects such as Process Mapping, Product Costing, Customer Service, and Corporate Branding & Identity. Each session is one week in duration and participants can choose no more than four. Finally, participants will make presentations and hold discussions on case studies from their own MFIs in the evenings.

by Ryan Benson -

MICROCAPITAL STORY: Indian SKS Microfinance Plans to Raise $30m in Equity; Possible Future IPO

To finance its ambitious expansion plans, for-profit microlender SKS Microfinance has announced it plans to raise RUP 1.3 billion (USD 30.3 million) in equity capital through private investors, hoping to increase its equity base from roughly USD 50 to 80 million. SKS’ management plans to use the new funds to double its current customer base of 500,000 over the next two years. To meet its equity target, SKS added that it may induct a new investor onto its balance sheet.

by Ipek Kuran -

MICROCAPITAL STORY: Life Insurance Corporation of India (LIC) Targets 4 million Micro insurance Policies in Rural India

India’s largest government owned life insurance company, Life Insurance Corporation of India (LIC), set a new target of selling 4 million micro insurance policies this year. In a speech given at the SKOCH Banking, Financial Services and Insurance Summit, LIC Chairman TS Vijayan said that two years ago, the corporation had sold 0.8 million micro insurance policies and this year, planned to increase its sales five fold.