kalangiam microfinance institute

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KalanjiamDevelopmentFinancial Services

BY-

DhruveshMantosh

Sajitha

Sanket

Sudhakar

Lakhyajeet


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Main Objectives To provide credit facilities to poor individuals joined

together, based on the concept of mutuality called Self HelpConcept.

To facilitate and liase with governments, ressourceinstitutions etc., for establishing financial and other linkages.

To promote, develop, finance rural and urban industries in allfields of benefit and interest to the poor.

To provide services of training, capacity building, capacityassessment, evaluation of self help groups, federations and

other organizations. To assist rural, tribal and urban development and relief for

poor by all conceivable means.


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Governance KDFS is a unique institution governed by poor

people. Therefore, it is called People Institution.

The Board of Directors consists of twelve persons

of whom 4 are People Leaders and the remaining 8

are eminent Development Workers having

adequate experience and working knowledge in

the field of Micro Finance and the Board membersgovern the institution.


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Purpose of Credit programme The delay in the sanction of loans from the mainstream financial

institutions and commercial Banks is being compensated by the timelyassistance from the Company to Bridge the gap.

Wherever there is no commercial bank in the place of operation of thelocations, it is acting as a financial linkage institution to meet the needsof the poor.

Education

Health

Drinking Water Connection

House Electrification

Income generation activitiesSmall Business Dairy, Goat & Sheep rearing

Agriculture loans such as seed & fertilizer

purchase, ploughing machine, Bullocks etc.


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Values It provides economically viable and flexible financial

services to the poor. To accomplish this, the Institution

having, Highly specialized software

Good governance practices

Focus on development

Finance Building capacity and empowerment of

people.

Propagating good values and governance system topeople.


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Areas of operationKDFS is currently operating in 12 states viz. Tamil

Nadu, Pondicherry, Andhra Pradesh, Karnataka,

Kerala, Orissa, Rajasthan, Madhya Pradesh,Maharashtra, Assam, Jharkhand and Bihar

networking with Kalanjiam and Vayalagam

programme of DHAN Foundation and NGOs like

IBTADA, Aravali, Srijan, etc.


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Kalanjiam Community Banking Started in 1990.

Model of microfinance with emphasis on Member

ownership, Shelf help and mutuality. The primary purpose of this model is to

1. Empower the women

2. Address poverty by going beyond microfinance

3. Promotion ofnested institution (groups, cluster and

federations) is core aspect of this model with greateremphasis on sustainability through establishinglinkage with mainstream and covering the cost ofoperations.


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Building women self-help groups and their federations at thegrassroots and enabling them for community ownership andsustainability are key elements of the approach. So far,40,618 primary groups at village/slum level covering609,139 families have been promoted in 12 states of Indiaand the groups have been networked into 209 federations.

The approach strongly emphasizes on integrated

development and microfinance plays a starter role inorganizing the community. Matured Kalanjiam federationshave gonebeyond microfinance and have integratedagriculture, dairy, natural resource management, socialsecurity, nutritional security for women, safe drinking water,sanitation, primary education, housing, vocational skill

building, migration, micro-justice etc., aiming at overalldevelopment of poor.

Source-http://www.dhan.org/themes/kf.php


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Kalanjiam Foundation has promoted 25 federations in

urban slums of cities namely Hyderabad, Madurai,

Mysore, Salem, Tirupati and Vizag. These federations address livelihood issues of migrant

families in the slums. In addition to livelihood

financing, the urban SHGs and their federations focus

on housing needs ofmigrant families andpromotion of

vocational skills among women and youth. Nearly

15,000 families have been supported for new house

construction and upgrading existing houses through

linking with housing apex banks and Municipal

Corporations.

Source-http://www.dhan.org/themes/kf.php


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Reversing priorities-Going beyond microcredit.

Promote collective action to promote demand system.

Promote self-governance-Develop own programs and

products.

Co-learning among primary groups.

Capacity building to strengthen local management.

Establish institution linkage and create identity.

Promotion and development of new products.

Scale advantage- Sharing of resource.

Promote peer pressure for self-regulation.

Bridge the gap in credit demand and leverage funds from

formal financial institution,

Need for promotion of nested Institutions of

savings & Credit Groups


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Primary Groups 15-20poor members (Self Help Group)

Cluster DevelopmentAssociation (20 30 group)at local Government level

Federation of SHGs(200 groups)

social security

Banks

Insurance

Companies

People Mutual:Catalyzing

Social Security

SustainableHealth care

advancement


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FINANCIAL SERVICES OFKALANJIAM PROGRAME


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Savings

Credit for stability Collaboration with mainstream banks.

Insurance


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FINANCIAL PERFORMENCE

SOURCE-ANNUAL REPORT 2011


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FINANCIAL STATEMENT

Financial Results


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Multilevel Community Institutions on Various

Parameters

Parameters Primary Group Cluster Development Federation


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Parameters Primary Group Cluster Development

Association

Federation

Purpose To create credit for

consumption &

emergencies.

To redeem the poor from

loan sharks

To strengthen and

formalize the savings &

credit practices.

To achieve financial viability

and sustainability

Sharing the leadership & co-learning

To ensure the quality through

self regulation across member

group

To build capacity of leaders andlocal staffs

To provide institutional

identify for members grp.

To represent membersinterest

To meet civil needs of

members (Education &

Health) & Go beyond

savings

.

Members &

Eligibilities

15 - 20 individuals - poor

women's

Preferably from a

neighborhood in a slum

15 - 20 primary groups

Only primary groups involved

in successful savings & credit

operations

150 - 200 primary

groups

Only well performing

clusters

Legal Status &

Area of

operation

Informal grp. at village

level.

Association of persons

legally recognized by the

bank

Informal association of the

constituent member group at

cluster of villages or slums.

A legally registered not

- for - profit org. under

the Indian trust

Act(1882)

Block level or cluster of

slum in a city or town



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Association

Federation

Formation Self selected members.

The poorest identified by

DHAN Foundation staff

1st few meetings by

DHAN Foundation

6 months after grp. Are formed .

The process of formation is

facilitated by DHAN Foundation.

After 18 - 24 months of

grp. Formation

Grp. Across clusters

interact & organizeworkshop before

initiating federation

Governance

(a. General

Body)

Al individual women's

members(15 - 20

members)

Each primary grp is an

institutional member & 3 office

bearers.

Consist of 45 - 60 persons.

Each primary grp is an

institutional member & 3

office bearers.

150 - 200 grp represent

Consist of 450 - 600

Persons.

b. Executive

Committee

President, Secretart &

treasurer selected by grp

Rotational leaders in each

2 yrs

9 members constitute, selected by

general body for 3 yrs

9 - 11 members

constitute the Board of

Director of federation.3 yrs for each directors.

Executive committee

includes the President,

Secretary , Vice

president, Joint

secretary& treasurer



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Association

Federation

Management

Staff

Grp. Accountants are

local persons employed for

each clusters and their

services are shared by grp.

2 -3 local staffs

Training & capacity provided by

DHAN foundation.

One chief Executive and

one finance manager

employed by DHAN

foundation

Source of

Funds

Saving from members

Interest income of loans

Loans from local bank.s

Entrance fee & Equity

Service cost & interest on loan

Loans from federation

Grants from Govt.

Entrance fee & Equity

Service cost & interest

on loan


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Challenges for Replication Clarity of Promoters

Developing local staff for people institution

Promotional Cost Timely Credit

Legal Constraint


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Future Direction

Scaling up to reach One million

Support to federations for social sector

Establish a resource centre in microfinance

Policy intervention

kalangiam microfinance institute

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