Bandhan Bank Microfinance
The Bandhan Bank was established to provide micro-finance to the self-help groups consisting of women only. Here are a few microfinance strategies meant for Bandhan Bank to accelerate their cause-
- Bull Whip Model– In this method of 1-2-1-2, only one person who has been successful in the micro-finance lending, will guide two more persons under him. These two men then guide one person.
- Co-operative Model- In this method of 5-5-5, a group of 5 persons will act as a team liable for any failure. This is in the case of farming or allied activities. The loans are dispersed in a group of 5.
- The Apprentice Model- In this method of 1-1-1, each one will teach one. This happens in the case of handloom and embroidery, where a master teaches an apprentice, and the method rolls on.
- Individual Model- In this method, only a single person is a part of the lending from the Bandhan Bank. This happens in the case of bigger farming loans.
- Group Disbursal Model- In this method of 3-3-3, groups of three formed help each other in working together. They may form cow herding groups. This is similar to the co-operative method, but with a difference in the number of group members.
I guess with the introduction of the World Bank’s expertise in the Bandhan Bank, this will be a boon.
Apart from this, Bandhan can play a very important role in financial inclusion in India by taking up the following-
- Providing financial literacy & awareness for financial empowerment where agents are trained to act as supervisors
- Providing loans only for productive purposes for various self-help groups and activities
- Providing loans for education of their children and the loan range is INR 1000 to INR 10000
- For books & fees etc. & also provide health loan, emergency health requirement & sanitation purposes including basic knowledge impart for finance
- For real financial inclusion they need to target families and work for their uplift of their life conditions and standards
- Increased emphasis on grassroots level banking for maximum reach and financial inclusion
- Keeping up to its main objective of poverty alleviation & women empowerment by introducing organised banking services and products designed especially for women