Details of Microfinance Courses
The Reserve Bank of India ( RBI ) defines microfinance as “the provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi – urban and urban areas for enabling them to raise their income levels and improve their living standards.” Such clients have been largely excluded from the credit extended by commercial banks. Traditionally, microfinance clients were self – employed micro – entrepreneurs for whom credit served the purpose of consumption smoothening, investment in productive assets, or working capital for income – generating activities.
Microfinance is a very young and growing sector in the financial market. In contrast to the formal financial sector, it provides small financial services ( 1000 – 50,000 ) to assist the poor both financially and socially. Microfinance aims to target the rural and urban poor who own micro – enterprises that work in agriculture, dairy, poultry, grocery, tailoring, broom making, and pottery, among others. Microfinance practitioners, as a whole, aim to target almost 500 million people.
There are various organizations involved in microfinance like NABARD, SIDBI, SBI Associates, Oriental Bank of Commerce, some private banks and funds. Besides there are a new generation of microfinance practitioners and various social development agencies have adopted microfinance as an effective tool to fight poverty and empower women. They are largely known as Micro Finance Institutions ( MFIs ). The involvement of various public, private and other NGOs shows the value and scope of growth in this sector.
Employment Potentiality for Microfinance Career
The potentiality of Indian Microfinance sector is very huge. On a conservative estimation, 10 crore households need micro credit and other financial services which are not available to them at an affordable cost. In the last two decades, the MFIs have grown phenomenally but they could reach hardly around 10 per cent of the potential clients. There is enough scope for this sector in India to grow both horizontally and vertically. The sector needs personnel from various educational and experience backgrounds to serve in the organization at various level.
Graduates in any discipline having experience of social, economic and cultural conditions of the locality are preferred by MFIs to serve as local coordinator / local organizer / community organizer / group promoter / field officer at the operational level. The graduates beginning their career with Micro Finance Institutions as filed level officer increase their future employment potential. The entry level pay varies from 5,000/- to 10,000/- per month along with other incentives. The Commerce graduate or post graduate may opt for credit officer / accountant post in Micro Finance Institutions.
The employment opportunities for professional graduates are also very high in Microfinance sector. The graduates in the discipline of Agriculture, Veterinary, Horticulture, MBA, Engineering and others are expected to be posted as area / zonal / regional manager with a pay package ranging from 20,000/ – 50,000/- depending upon the business strength of the Micro Finance Institutions. The graduates of rural development and rural management institutes are in highly preferred for various positions in MFIs. Even retired / VRS professionals having experience of working in banks, government sectors, NGOs and corporate sectors may seek reemployment in Micro Finance Institutions.
The candidates having experience of working in good Indian Micro Finance Institutions are in high demand for international microfinance pest in various developing countries and international organizations with a high salary package.
Dr.B.C.Das is Asst. Professor,
Centre for Rural Credit and Development Banking,
National Institute of Rural Development ( NIRD ),
Hyderabad – 500 030.