DripFin

DripFin means Drip Finance ala Drip Irrigation (i.e. small scientific value added productive measures)

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Quarter Life Crisis – Must Watch Advertisement

A young nervous, “never been abroad” Techie working for some “sweat shop IT company” – is going overseas for an “on-site” assignment for 6-8 months. His parents are equally nervous and keep inquiring about what time is the flight, boarding time etc, and whether he has “packed” his bags etc ?

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Be a Change Maker !

Join Changemakers and Citi in the search for innovative and cutting-edge methods that allow financial security to become a reality for everyone. Enter and showcase your work to key decision-makers and investors.  Enter the contest, visit http://www.changemakers.net/.

Banking on Social Change – Seeking Financial Solutions for All

The Big Trouble In Small Loans – Time

 Interesting Article – Must Read,  Click here to read the article in TIME 

World’s Largest Microsavings Companies in India – Sahara / Peerless / Disari ????

 Sahara India Financial Corporation (SIFCL) is the largest deposit-taking non-banking finance company  (Deposit Base of Rs 18,000 Crores / 40 Million Clients) in the country. Apart from Sahara, there are  two other RNBCs operating in India –  the Kolkata-based Peerless General Finance and Investment Company and Disari India Savings and Credit Corporation.

  Sahara India Financial Corporation (SIFCL), has been barred by the Reserve Bank of India from accepting public deposits with immediate effect.

The company has also been told to repay the existing deposits as and when they mature.

SIFCL, part of the highly influential Sahara group which has interests in mutual funds, insurance, real estate and media, has been found guilty of violating various regulatory norms.

According to a statement issued by RBI, on Wednesday, the violations include non-payment of minimum rate of interest prescribed for RNBCs (residuary non-banking company), non-maintenance of stipulated asset-liability match, violation of Know Your Customer norms for opening deposit accounts, not informing depositors in time about the maturity of their deposits, and non-repayment of deposits on maturity.

Currently, SIFCL, a residuary NBFC, has a huge deposit base of close to Rs 18,000 crore.

RBI has directed SIFCL to repay the deposits as and when they mature and not to treat non-payment of instalments under any running daily deposit or recurring deposit schemes by depositors as a default.

The company is also liable to pay the agreed rate of interest on the amounts actually held by it for the entire term of the deposit as if there was no default, RBI said.

RBI had earlier issued a show-cause notice to SIFCL on violation of various regulations. However, despite the warning, the company continued to violate the guidelines, RBI said.

An RNBC is a non-banking financial company that is wholly dependent on public deposits. Other NBFCs depend on market borrowings and bank finance also.

According to information from the company’s Web site, SIFCL, set up in 1987, has a depositor base of 4.25 core and 1,508 service centres.

 

DhanaX Launched !!

Siva, a self motivated entrepreneur launched www.dhanax.com. A Online P2P lending aimed at income borrowers.

dhanaX(http://dhanax.com ) provides a stable platform through which individuals can directly lend to low income borrowers with the help of partner organizations. dhanaX thus effectively connects willing lenders with credible borrowers in need of credit to start their businesses.

dhanaX Web Technologies Pvt. Ltd., headquartered in Bangalore, is an innovative social lending enterprise. At dhanaX, the objective is to provide easy access to credit for the enterprising but underprivileged borrower and a profitable investment opportunity for the social lender. Founded by a team of highly dedicated individuals with relevant experience in financial services, management and technology, dhanaX envisions to create a stronger society by paving the way for an economic revolution driven by the community.

The power of microfinance to transform lives is what motivates and drives dhanaX in the endeavour. dhanaX draws inspiration from the entrepreneurial spirit of thousands of small farmers, underprivileged women and small business owners across the globe. In India, close to 70% of the population is dependant on micro-enterprises, small-scale farming and other small non-farming undertakings for a livelihood. Access to cheaper and quicker credit is vital for such entrepreneurs to power their enterprises. dhanaX aims at fulfilling just such a requirement supported by individuals who believe in investing in society they live in.

With research establishing that micro loans boast a 95% repayment rate worldwide, investors have every reason to consider social lending as an attractive investment vehicle. Empowering the community around you can be a rewarding experience. Not just emotionally but financially too. And dhanaX aims to prove just that.

DB Online P2P Lending – Interesting Report

Good Report by DB Research on Online P2P Lending. Click to download the DB Research Report – Online P2P Lending

Microfinance Bill

The new microfinance law is underway, with the Union Cabinet on Friday clearing the bill despite an opposition from some official quarters citing lacunae in it. The bill will be tabled in the current session of Parliament.

The bill for microfinance will empower the National Bank for Rural and Agricultural Development (Nabard) to regulate the microfinance sector in India. While microfinance institutions, operating in the form of trusts, societies and co-operatives will now come under Nabard, non-bank finance companies have been kept out of the ambit. Significantly, the minimum capital required has been fixed at as low as Rs 1 lakh.

According to the bill, MFIs operating as co-operatives, trusts and societies need to register under the Microfinance Development Council (MDC), which will be a Nabard-promoted entity. It will permit MFIs to raise savings, but they will have to take specific approvals from the council after registration to be able to raise savings. The minimum capital requirement has been capped at Rs 1 lakh, with promoters of such MFIs having to contribute, at least, 50% of this amount.

Other provisions include the appointment of a microfinance ombudsman to cater to the redressal of grievances arising from the participants of the sector. This apart, it is likely that the microfinance development fund, announced in the last budget, may now be made the centralised recipient of the grants received by MFIs, mainly from overseas institutions.