Case Study on Microfinance with Education

By: Click to edit Master subtitle style Anusha Pai

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Microfinance with Education

India despite economic growth is home to some of the smallest and most undernourished people in the world. Income is only 1 dimension of poverty, a very important one. Microfinance institutions (MFIs) have been commercialized. Commercial investors were not interested in buying equity because profits cannot be taken out of an NGO. Banks were not keen to lend money because NGOs assets cannot be attached easily. They use poor as puppets.

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Microfinance with Education

These days microfinance is a bidding enterprise in the rural areas where the poor and the needy are given loans for small amounts without any security but at one. project idea combines two basic needs of growing India: Finance with Education.

Our

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Microfinance with Education

In

this project, the poor will be given loans provided they send their children to some English medium schools and the interest rates will be cut down accordingly. The interest rate will be cut down further if they send their daughters to school.

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Q.1 Design the role of MIS in this application

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Role Of MIS

MFIs, whether large or small, need to have a strong back-office MIS, before attempting to deploy any advanced front-end applications or delivery channels. These would be worthless without having a strong and flexible back-office MIS in place.
of information system - Manual - Computerized.

Types

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Manual System
single information system (IS) will meet every MFIs information needs. The IS needs of institutions differ in size and in complexity. These differences are a function of many organizational variables. Some MFIs still rely on manual systems, which involves maintenance of records in forms and ledgers. Organizations having manual systems are either small micro-credit programs or NGOs.
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No

Disadvantages Of Manual System

Too laborious and time consuming. Prone to Errors. Data manipulation and analysis is very difficult. Maintenance of large amount of data is almost impossible. Data and information is not secured. Loosely controlled. Highly inflexible.

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Computerized system
Information

and data is considered among the most valuable assets fundamental to the success of an organization. The primary roles of the MIS are to capture information, create new information, store information, and convey information to the user. The two major objectives of MFIs are Outreach and Sustainability.

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Advantages using MIS

It

provides easy access to accurate and upto-date information. such as disbursements, repayments, deposits, withdrawals and money transfers are completed faster, better controlled and with minimum opportunity for errors. is produced in user-required formats, which facilitates better understanding, setting priorities, objectives 3/27/12 and strategy.

Activities,

Information

 Efficiency

and productivity of staff is increased, as they are able to manage more products, customers, and transactions in less time. meet target market needs, introduction of new products and setting procedures is easy and can be quickly applied throughout the branch network. can also provide the flexibility to integrate with other applications and delivery mechanisms. lowers transaction cost, increases productivity,
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To

It

MIS

Q.2) Functional Components

Simple

MIS comprises of two parts. Database - data structure; an organized set of tables designed to the needs of the business. All data of the organization resides in these tables. Application Software comprises of the user interface, business processes, procedures, reports

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Basic Structure for the Core MIS for Microfinance

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Q.3)Components of Information System

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1. Physical Architecture (Electricity/Power & communication infrastructure)

Physical

architecture consists of basic wires or cables to gateways and powerhouses. Together with buildings, offices, and computers, the architecture provides services of voice, data, image and video transmission while the consistent power supply keeps everything live and running.

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2. Network
Three

made.

types of environment setups could be

i. Standalone Environment; MIS is run on individual PCs and data is stored locally. ii. Local Area Network (LAN); PCs are connected together to create a LAN. The network can be either peer-to-peer or client/server. Desirable is the Client/server network where data is stored and shared through a server in a secure way.
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3. Hardware
Type

of hardware depends on the network environment. A client-server environment requiers server and switch for connecting the workstations /PCs.

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4. Database
databases There are a number of local databases but the most widely used databases are Microsoft Access, FoxPro, Paradox, and file maker. Client/Server databases Most popular client/server databases also called enterprise databases include; Oracle, DB2, SQL Server, MySQL, Sybase.
Local

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5. Application
A

combination of business processes and procedures, user interface, reports and controls operate on top of the backend system. A large variety of software development and report generation tools are available and used to write software applications

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Design the project management scheme

Processes

required to Preparation -Establish a good foundation by planning well Needs Analysis -Understand your requirements and prioritize Selection -Choose the optimal solution given your resources Implementation- Make it work Optimization and Maintenance- Continue to improve on its performance
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Q.4) Challenges faced by MFIs

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technical capacity and required resources understand, adopt and implement solutions.
There

Majority

of the MFIs do not have the to MIS

is a shortage of skilled professional to suggest the right solution. is poor information sharing.

There In

some cases there is a lack of vision and 3/27/12

Q.5) MIS Characteristics for Microfinance

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 1.

Cost effectiveness: Total ownership and lifetime system operations costs, including hardware, software, network, infrastructure and human resource. Functionality & flexibility: Fulfill maximum of the current business requirement and Should be flexible. Reliability: Incomplete and unreliable systems are dangerous.
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2.

3.

 4. 5.

Simple to use: Should be user friendly.

Scalability: System should accommodate changes to products, services and delivery channels. It should grow as the business grows. Integration: Combining data from multiple sources is of great importance to microfinance.
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6.

Thank You
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