Swayamshree Micro Credit Services

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The credit delivery/lending model of SMCS was SHG driven and women centered. SMCS focused on women who were in a disadvantaged position in the community. The organization tried to reduce gender discrimination by training women in entrepreneurial skills. Under the SHG model, women in villages were encouraged to form SHGs of around 10-15 members. The members contributed their savings periodically to the group and from these savings small loans were provided to the members. SMCS operated through the SHG-Bank linkage model wherein SMCS played the role of financial intermediary between the banks and the SHGs in order to provide financial services to the SHG members. SMCS also offered promotional support through training programs (Refer to Exhibit V for SHG-Bank linkage model). SMCS set up SHGs and developed and trained them in thrift and credit management. Later, it approached banks for bulk loan assistance for on-lending to these SHGs, generally for income generation purposes. The SHGs were self-sustaining and once they gained stability they started functioning independently with some support from SMCS. As of 2012, SMCS maintained over 11,000 SHGs..

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SMCS offered a broad range of financial as well as non-financial products and services to its clients...


The financial products generally included loans for micro enterprises, agriculture & allied activities, housing loans, and finance for water & sanitation and clean energy. All the SHGs registered with SMCS and those that had a good track record of credibility with regard to loan repayment to other agencies were eligible for the loan products...


Point of Sale (POS) Machine

SMCS was appointed as a corporate agent by SBI for Point of Sales (POS) terminals under which all the debit card holders of the bank could withdraw cash from the POS outlet at SMCS up to a maximum of Rs.1000 a day. As on March 31, 2014, SMCS had opened 34 POS outlets at its branches and kiosk centers in Odisha...


Owing to unhealthy competition among the MFIs, the core principle of SHG formation –- ‘Panchasutra’ was diluted in the name of growth, expansion, and outreach. SMCS was also a victim of unhealthy competition in the microfinance sector..


Going forward, SMCS planned to expand its operations to all the 30 districts of Odisha and double its client base by 2017-18. It projected an aggressive growth plan of achieving a target of disbursing Rs.750 million to 67646 clients in 2016-17 ..


Exhibit I: Top 10 MFIs in India (Based on Outstanding Loan Portfolio)

Exhibit II: Self Help Group (SHG) – A Concept

Exhibit III: SMCS- Financial Highlights (FY 2011-2014)

Exhibit IV: Financial Portfolio of SMCS

Exhibit V : SHG-Bank Linkage Model

Exhibit VI :SMCS - Products and Services

Exhibit VII :SMCS - Loan Products

Exhibit VIII :A Brief Note on Microfinance Sector in India

Exhibit IX :Assessment and Ratings

Exhibit X : Future Projections and Funding Strategy