The report’s release precedes the Global Microcredit Summit 2011 to be held November 14-17 in
While more than 205 million people worldwide received a microloan in 2010, this multi-year campaign focuses on outreach to the poorest clients. According to the report, over the last 13 years, the number of very poor families with a microloan has grown more than 18-fold from 7.6 million in 1997 to 137.5 million in 2010. The latest data comes from more than 3,600 institutions worldwide, with more than 94 percent of the information having been collected within the last 18 months.
However, in the last year microfinance has faced setbacks as well. An initial public offering of SKS, a microfinance institution (MFI) based in Andhra Pradesh, India, was followed by charges of over-indebtedness and suicides among clients in that state, resulting in a clamp-down by the state government last October.
“While our progress has been stunning, the challenges in Andhra Pradesh and elsewhere will take a toll,” said Campaign director Sam Daley-Harris. “As of
The report also highlights the number of poorest women reached. Not only have these women been the most excluded from traditional banking, but they are also the ones most likely to ensure that the increased income is used to improve the lives of their children. From 1999 to 2010, the number of poorest women reached has increased from 10.3 million to 113.1 million.
The report was released in
The State of the Microcredit
The Seal of Excellence has been under development for 19 months and will continue to evolve with input from a broad range of stakeholders. It will recognize those institutions that deepen financial inclusion by providing products and services that reach poor people and support their movement out of poverty. The Seal of Excellence will build on other microfinance industry initiatives, including the Smart Campaign’s client protection principles and the Universal Standards of the Social Performance Task Force. The Steering Committee for the Seal of Excellence plans to use the existing social rating and evaluation systems to assess the performance of microfinance institutions in poverty outreach and transformation.
“As a microfinance community, we need to shift our focus from outreach to results,” said Larry Reed, incoming director of the Microcredit Summit Campaign. “The State of the Microcredit Summit Campaign Report 2012 outlines important steps that we can take together to insure that the financial services we provide result in regular meals, secure housing, uninterrupted education, and better health for our clients and their families.”
It is estimated that over 1.7 million households have received institutional microfinance services on October 2011, a massive increase from around 150,000 members in 2000 when RMDC started its operation. The partner organizations of the
The partner organizations of RMDC have cumulatively disbursed loan amounting Rs.80.87 billion to the poor and deprived families and collected back Rs.66.7 billion till July, 2011 while the collective loan outstanding stood at Rs.14.17 billion. Similarly, they have been able to collect savings worth Rs.5.80 billion from the members as of July, 2011.
On this occasion, Chief Executive Officer of RMDC, Mr. Shankar Man Shrestha stressed the need for delivering microfinance services in responsible and sustainable manner. "The problem of multiple-financing and over-financing to the clients is apparent in
RMDC has been increasing capacity of its partner MFIs and their clients through different training programs and exposure visits. Similarly, it has been organizing different national and international level conferences for the expansion of this sector. It has been also organizing different seminars and conferences to sensitize the members and MFIs about the problems faced by MFIs. Credit plus program of RMDC has been the key for maintaining over 98 percent repayment rate.
The Microcredit Summit Campaign aims to reach 175 million of the world’s poorest families by 2015 and ensure that 100 million of those families move above the World Bank’s $1.25-a-day poverty threshold.
To download the report online: http://mcs2015.org/2012-Report-English
The Microcredit Summit Campaign is a project of RESULTS Educational Fund, a U.S.-based advocacy organization committed to creating the will to eliminate poverty. The Campaign was launched in 1997 and, in 2007, surpassed its original goal of reaching 100 million poorest families with credit for self-employment and other financial and business services. The Global Microcredit Summit 2011 will be held November 14-17 in