SMBT(Sarvodaya Mutual Benefit Trust) Micro-finance to SHGs

Self Help Group Approach

Promotion of Livelihoods through Mutual Benefit Trust

An SMBT needs to manage both its Financial and Social Performance

MISSION

Financial performance

Social performance

Social and financial performance

Mission statement analysisSMBTs

Social performanceSocial performance

Reach poor clients (who)

Provide services that help reduce

poverty (how)

Reduce client poverty (what)

Improve the well-being of the economically active poor by providing long-term access

to quality financial services

Conceptual framework:The social performance pathway adapted

Mis

sion

Goa

ls

Systems Service design and delivery

Obj

ecti

ves

Reaching target clients

Meeting client needs In line with theircapacities

]

CHANGE

Alignment with social responsibilities & values

Background: SMBT

Vision: Promote Sustainable Community Institutions for Micro-finance and Rural Livelihoods; Mission: To Alleviate Poverty among 100,000 Rural

Poor Families by 2014; Current Operations: 15,000 Families in 3districts

of 2 states; A Professional Agency (30 professionals); Operational Vision: Promote Livelihoods Clusters

for the Poor

Why SMBTs Economy of Scale

Negotiation of loans from mainstream FI’s Manage larger economic activities

Reduce Transaction Cost Additional services can be housed Cost of promotion of more groups can be

minimized Can become a pressure point for the women

Goals and Objectives

GoalTo Promote cluster based Livelihoods through self sustainable

community based Institutions for rural poor women;

Objective To grow Mutual benefit trusts with women membership and

sustainable external linkages;

Time Frame Three Years

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

Business status till 2010

Credit given 57883900 Rs.

Revenue generated to SMBTs

948000 Rs.

No. of SHGs benefited 1394

No. of household benefited

12249

Women SHGs

Women Dairy Groups in Villages

Women RiceGroups in Villages

BASIX

Chilling of milk in the

bulk coolers at sub-cluster level

Managed by NGO and owned by producers

Transportation of chilled milk to nearest market on contract basis

Cluster

SMBTs

Entrepreneurs to be responsible for collection and Transportation of raw milk

Veterinary Service

Providers

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

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

THANK YOU

Prakash Choudhry