Micro Finance Institutions or MFIs are usually not-for-profit organisations. Yet are in a segment that has traditionally involved high margins. They provide financial relief to the poor, largely in rural areas, with the aim to alleviate poverty. Most noteworthy they often pursue the important goal of enabling the poor to acquire skills so that they can earn a livelihood. They typically consider their borrowers as members of the organisation and are often organised as cooperatives forming SHGs.
Service and Activities:
- Micro credit – Provide loans ranging from $100 to $500 (INR 5000/- to INR 20000/-), based on Member’s condition and qualification criteria.
- Savings Management – Guidance on saving money so that Members are able to repay the loans.
- Literacy, Skills and counselling – Provide training to Members in different crafts as well as general literacy so that they can break through the vicious cycle of illiteracy and poverty.
Many MFI companies have begun offering additional financial service products like Insurance and Pensions. They are faced with the task of maintaining accounts as well as a large number of member information. They need to monitor member activity and transaction records for the different financial products provided to members.
mPower from Milan Tally Services is a dedicated solution built on Tally.ERP9 for Microfinance Institutions like Credit Co-operative societies, NGOs, NBFCs etc.
The standard mPower solution addresses the management needs of micro-credit and loans. Other MFI service areas/products like Share-Dividend, Savings/ Thrift, FD, and RD are available as add-ons to mPower. Send transactional SMS and Collection using Handheld POS printing devices.
Benefits of mPower:
- Quick and comprehensive assessment of borrowers enable faster recruitment of members
- Automated entries reduce staff time in data entry and also improve accuracy
- Helps faster service delivery gaining customer loyalty
- MIS reports that warn of doubtful debts and defaults improving debt collection
- Reduce cycle time for loan recovery, thereby reduce recovery costs
- Enable you to sell extended products range and maximize Loan repayments
- Use latest technologies for speedy results