Abstract

This case is about the initiatives undertaken by Swayamshree Micro Credit Services (SMCS) a leading Micro Finance Institution (MFI) in Odisha, for improving the livelihood of the rural poor and promoting their economic and social well-being. Established in 2003, SMCS offers a range of financial and non-financial products and services aimed at creating a poverty-free, inclusive society, where the poor have opportunities for growth and self-renewal. The case discusses the microfinance model of SMCS which is Self-Help Groups (SHG) driven and operates through the SHG–Bank Linkage Program (SBLP). The case discusses the growth of SMCS and its role in boosting the SHG movement in Odisha by nurturing and training the rural poor in credit management and serving as a facilitator between SHGs and banks. The case concludes by presenting the challenges faced by SMCS in carrying its microfinance activities forward and the ways in which it can expand its operations and become more efficient and sustainable in the long run.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the process of the formation and functions of self-help groups (SHGs)
• Evaluate and analyze the impact of microfinance as a poverty reduction tool
• Study the initiatives undertaken by SMCS toward poverty alleviation in Odisha
• Understand the challenges faced by MFIs in India and how SMCS can overcome these challenges
• Explore the future strategies that SMCS should adopt to strike a balance between its social mission and ensuring financial sustainability of the organization.

Keywords

Swayamshree Micro Credit Services (SMCS), Micro Finance Institutions (MFI),Self-Help Groups (SHGs),Center for Youth and Social Development (CYSD),Poverty alleviation, SHG–Bank Linkage Program (SBLP), Micro finance sector, Capacity building support