“Hope for poor – Sasrutha” is a MashUp application developed to support and to encourage micro finance process.
As women are proven to be the best poverty fighters, capabilities and spare time of women in homes could be utilized in finding ways to generate an extra family income. While doing house chores, they can be self employed in small scale businesses and can use the income generated to purchase nourishing food for children, meet their educational requirements and at the same time making a saving for future.
As many women are reluctant to work outside with family responsibilities and restrictions, finding a way of generating additional income while looking after the family responsibilities at home is important. Lack of capital funds to initiate such income generating businesses and lack of an organized system at micro level is a major constraint to these poor people. Even if they produce items, they find it difficult to sell the items. Also selling items to an intermediary, will only allow these women to get only a pinch from whole profit. They have less bargaining power.
Even the micro finance providing organizations find it difficult to carry out a smooth process with high cost of administration and due to improper management of defaults. It is high costly to employee a high amount of field officers to collect loans each day from people, the monthly installments are due per a particular day. Due to improper management, a higher set of field officers are employed to the same segment, though it could be covered by a single employee.
Microfinance is not only about loans. It also should encourage savings.
In these organisations, most deserving people may not receive the donations. It is important that most deserving people receive the donations. Also the headquarters or the mother company find it difficult to track the progress made.
