Products

Products and services offered by the MFI

Details of any new / non-conventional products and services like water, sanitation, energy efficiency, rural housing, training and skill development, advisory or any support services offered by MFI to its borrowers:

  1. a.       Rural Housing:

SMCS has introduced Housing finance to members of SHGs through their SHGs. Majority of the loans are in rural areas and authorized urban slums of Bhubaneswar and the loan amount ranges to maximum Rs 50,000/- per beneficiary. National Housing Bank has sanctioned and disbursed Rs. 100 lakhs for house repair/renovation loans to SMCS. SMCS disbursed such loans to 156 women amounting to Rs71.40 lakhs during the year. So far Rs 520.40 lakhs of said loan as on 31.03.2013 to 1226 beneficiaries have been disbursed.

  1. b.    Finance for water & sanitation

As per 2011 Census report of India 46.9% households in India are having toilets. In other words half of the country’s population still defecates in the open even after 65 years of independence. In Odisha as per a survey, out of 96.61 lakhs houses, 21.25 lakh houses have facility of toilets, i.e. only 22% families are having toilets. More than 80% houses are not having bathroom.

Census 2011 & economic survey 2011 data shows that 35.4% of households in Odisha have to travel more than half a kilometre for drinking water, and that this figure has actually grown in rural Odisha. National level actual figures, about 45,16,686 families had drinking water sources more than 500 metre away from their houses as per 2011-census compared to 30,44,884 in 2001. It means 14,71,802 families have become vulnerable as far as access to drinking water is concerned.

Faced with the harsh reality of open defecation by a vast majority, affecting the dignity of women and girls the most, SMCS took up with National Housing Bank (NHB) for getting loan assistance for on lending to women SHGs for providing water & sanitation facility to their members. NHB responded positively in the matter and sanctioned and disbursed Rs.100 Lakhs for the purpose. As on 31.03.2013, 9 members have been disbursed loan of Rs 2.70 lakhs for construction of toilets.

  1. c.       Finance for Clean Energy:

Biomass Cook Stove saves time and fuel expenditure and since it is smokeless prevents health hazards associated with smoke. Women who normally cook food thus can utilize their saved time for other gainful activities. There will be less of health hazards to them

Solar powered light similarly provides uninterrupted light where electric power is erratic. It improves business, study activity of students. There is no health hazard like associated with fossil and other fuel.

SMCS has tied up with The Energy and Resources Institute (TERI), New Delhi for financing biomass cook stove and solar light.

  1. d.    Business Correspondent (BC) of State Bank of India (SBI):

RBI has stated that  “We are trying to use BCs to take banking to the people’s doorsteps. The BC model is aimed at reducing  the transaction costs  of banking services  as the cost of  regular  bank employees is  very high, making it difficult to provide low cost banking services to the unbanked poor. However, banks do not seem willing to pay reasonably to these people from the unorganized sector. The poor BCs are paid so low that people accept this job only if they do not have any other option and at the very first opportunity, leave the BC’s work. The BC needs to be paid reasonably and also supported through appropriate ICT enabled infrastructure.”

SBI has appointed SMCS as their Business Correspondent (BC) for the state of Odisha for extension of Bank’s following services:

Deposit Accounts, Mutual Fund Sourcing, Home Loans, Auto Loans, Loan against TDR/NSC/KVP, Gold Loan, SME Loans, Kishan Credit Card (KCC), General Credit Card (GCC)

The following advantages are expected to accrue to us out of BC activity of SBI:

  1. Opening of accounts and other banking transactions through us will not be confined to normal banking hour
  2. SMCS will help achieving government and SBI target of achieving Financial Inclusion plan
  3. Mobilisation of SHGs for our finance will be easier.
  4.  SMCS will get some remuneration as a BC.

SMCS deposited Rs.10 Lakhs as security deposit with SBI for the purpose and is authorized to open 1000 KIOSKs. We have opened 13 kiosks in our branch locations. Such kiosks have opened 4766 Savings Bank accounts in 2012-13. Besides SB accounts of individuals our kiosks are also opening Recurring Deposit and Fixed Deposit accounts who have opened SB accounts with them. SBI has recently permitted opening SB accounts of SHGs by Kiosks/CSPs where the operating office bearers of SHGs, viz, President and Secretary/treasurer have already opened their individual accounts. During the year all our kiosks made cash payments of Rs 49 lakhs and cash receipts of Rs21 lakhs. SMCS earned a commission of Rs 2.28 lakhs net of taxes on account of its kiosk operations during the period. We have applied for two more kiosks for our branches.

SBI in the month of March 2013 allotted us 81 Financial Inclusion (FI) villages for opening of Customer Service Points (CSPs) by 31.03.2013. Of these FI villages 56 are with population of 1600-2000 (Phase-II) and 25 villages with population of 2000 and above (Phase-I) and having no bank branch. We finalized all CSPs in Phase-II and 6 of Phase-I (SBI verbally asked us to go slow for Phse-I villages) during the period and have been allotted CSP Codes by SBI. All the said villages are in Khurda, Cuttack, Puri and Bhadrak districts. Four of the CSPs will be operated through our existing branches and the rest on commission basis.

  1. e.     Aggregator of National Pension System

Government of India launched the New Pension Scheme, for the people in unorganized sector who are from the economically disadvantaged sections of the society for security in old age. Pension Fund Regulatory & Development Authority (PFRDA) has responded to our application and has appointed SMCS as Aggregator for the Swavalamban Scheme under New Pension System (NPS)-Lite

 

  1. f.      Promotion of Financial Awareness                                          

People served by SMCS are mostly daily wage earners, marginal farmers, fisher community, petty traders etc. and are below poverty line. Because of poor communication and infrastructure facility very often they are the last ones to get any benefits of Government programs. Poor infrastructure and inadequate marketing avenues results in low household income. The mainstream agencies are far way from these poor families and very often the Banks consider them un-bankable. ‘Financial inclusion’ remains a mirage for them.  Financial literacy, capacity building training/awareness etc. are yet to reach these poor inhabitants.

SMCS has organized them under the banner of Self Help Groups (SHGs). Capacities building of the poor through awareness generation, training orientation, exposure to the best practices, providing financial and marketing support etc are the main thrust area of SMCS. SMCS has conducted training programs on financial literacy, Group management, Financial Management, Leadership skills, micro-enterprise promotion and skill building for the poor. It has taken initiative to impart skill based income generation training programme through mainstream Training Institutions like RUDSET, Food and Extension Unit, Govt. of India etc. Besides, SMCS provides various micro enterprises training with the assistance of NABARD and SIDBI. These efforts definitely help the poor to enhance their enterprising and business skills that in turn results in increasing household income. SMCS believes that imparting education and training to these target segments is equally essential to ensure transparency and create awareness. These training programs are also conducted by SMCS staff and Field Facilitators in local languages and cover not only the clients but also others from the villages. Through these programs SMCS also provides credit counseling and information on parameters like saving habit, better utilization of savings, credit utilisation, asset creation, insurance, income generation etc.

  1. g.      Training programme for Field Staff of NGOs in LWE/backward districts.

–       NABARD in the year 2012-13 entrusted SMCS, training of NGOs for 14 Left Wing Extremist (LWE) affected districts out of 19 districts of Odisha identified by Government of India. SMCS conducted 16 programs  as required by NABARD.

–       NABARD has selected SMCS as TOT (Training of Trainers) for Master Farmers for their Pilot Project in Balasore district for improvement in crop production.

 

  1. h.    Financial Intermediation: Micro Credit (Lending & On-lending)

–          Social Intermediation: Extending capacity building support for strengthening SHG/ Federations, Conducting Trainings on Leadership, bookkeeping, Financial Management, Cadre development, MIS etc.

–          Undertaking publications on micro credit; periodicals, posters, manuals, success stories, user-friendly record keeping systems & training modules etc.

–          Enterprise Development Services: Conduct Trainings on EDPs, Micro Enterprise promotions and establishing cross-linkages with various skill building institutions & marketing outlets.

–          Non Financial Services (Capacity Building Support): -

SMCS provides various Capacity Building support to SHGs and intermediary groups in the form of providing training/ orientations,  organizing exposure visits to best practices, arranging Conventions and marketing facilities of their products, arranging training program for Income Generation Activities, Publication and dissemination of information, establishing cross linkage with mainstream organizations for training, marketing and providing insurance services.

  1. i.         Non Financial Services (Capacity Building Support): -

SMCS provides various Capacity Building support to SHGs and intermediary groups in the form of providing training/ orientations,  organizing exposure visits to best practices, arranging Conventions and marketing facilities of their products, arranging training programmes for Income Generation Activities, Publication and dissemination of information, establishing cross linkage with mainstream organizations for training, marketing and providing insurance services.

To develop quality SHGs for their sustainability and future growth, SMCS with its training and support wing, has been conducting a number of training programmes. SMCS not only strengthens the process of ‘participatory learning’ and ‘capacity building’ in the field of social development but also aims at building capacity at the grassroots and as well as at the intermediary level by undertaking both onsite and offsite programmes throughout the State of Orissa.  SMCS also establishes cross linkage with other Vocational & Handicraft Training Institutions for livelihood promotion and micro-credit operation from time to time for up gradation of skills of SHG members & micro entrepreneurs. The SMCS with the support of Public sector institutions like Rural Development & Self Employment Training Institute (RUDSETI) and Food and Nutrition Extension Unit of Government of India, Veterinary Officers Training Institute (VOTI), Orissa Milk Federation (OMFED), Orissa Poultry Federation (OPOLOFED), Central Avian Research Institute (CARI) has been conducting training programme in tribal areas for SHG members on skill development on various micro enterprises and income generating activities for sustainable income for the poor. SMCS’s expertise as a Resource agency is extensible being used by UNDP, UNIDO, CARE, Mission Shakti, Govt. of ORISSA, ST & SC Research and Training Institute, Govt. of Orissa, Water Mission Commission, WFP, NABARD etc