Approach

 

Economic Development Centre (EDC) Model: MIFS Division’s approach is based on the social work principal of building rapport and trust with the target community by being based in the community and working closely with them. This principle becomes even more important when establishing a Microfinance program. In order to implement this, MIFS division has adopted an Economic Development Centre (EDC) model to reach out to the targeted community. 

MIFS Division expansion team conducts the socio-economic mapping of the target area based on Participatory Rural Appraisal (PRA) tools to select the potential villages and community for starting the Microfinance Interventions. Based on the consultations with community, a centre (branch) called EDC is set up at the most accessible location within the target community/villages. This Centre is a community based resource centre, run and managed by local, trained and capacitated staff, with support and social ownership by community, to provide Credit & Credit Insurance services to the target villages/community.

Cluster Approach: Once the EDC is set up in the target area, MIFS team works on saturating the target villages/community by reaching out to all the target households and organizing them in social cohesive, joint liability groups called CLUSTER. A CLUSTER comprises of 10-20 women members supported by their husbands or Sons as guarantors. The formation of group is facilitated by the EDC team forming a social collateral based on the principal of ‘ONE FOR ALL & ALL FOR ONE’ and coming together with common goal of coming out of the vicious circle of poverty and improving their income & quality of life.      

Once the CLUSTER is formed, it is strengthened by means of orientation,  training & monitoring by EDC team on norms & rules of CLUSTER, selection of Cluster leader, role & responsibility of members & Cluster leader, do’s & don’ts, importance of joint liability and credit discipline etc. Once the group functioning is found to be satisfactory on basic norms & rules, it is linked with credit, & credit insurance services by EDC. For all Clusters and its members, EDC acts as a single window system for all their queries, issues, post disbursal queries and other services.