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Nancy Swanson, Executive Director of Linked Foundation, talks about microfinance and shares the Dorothy Largay family foundation’s success in the fight to alleviate poverty in Latin America. Linked Foundation’s goal is to advance the development of holistic approaches that combine micro-finance with health education and services targeted to poor women in Latin America. As quoted on the Linked Foundation website, women have the power to change the world.
Nancy explains that women are a crucial ingredient in the fight against extreme poverty because women place their focus on improving the lives of their family and community. However, due to this focus, they often neglect their own health.
Linked Foundation has invested in partnership with well-researched micro finance institutions to not only provide micro-loans but to also take the opportunity to provide additional educational and health services. A woman who comes to pay her loan can walk to another portion of the same building to receive these valuable services. Pro Mujer is one of several Linked well-respected partners. For those who are interested in participating in micro-lending, the list of Linked Foundation partners is a good place to start your investigations.
The Foundation sees their philanthropic investments as “risk capital” directed towards initiatives that address a high need and have the potential for high social impact. The next phase for Linked Foundation is to work in partnership with The Eleos Foundation to fund for-profit initiatives that fight poverty while providing health and other educational services for the community. (Listen to past interviews with Andy Lower, Executive Director for The Eleos Foundation:
Listen to the interview completely to learn more about the importance to thoroughly research micro-lending organizations to assure best business practices by the Micro-Finance organization and that your specific goals are addressed well by the Micro-Finance Partner (MFP).
we fully agree with you that microcredit +credit plus will actually improve the quality of life, we practice this at Equitas,brief of all our activities is enumerated below
Equitas Micro Finance India P Ltd, Chennai
In a matter of 3 ½ years, the company has set benchmarks in the Micro Finance industry:
1. A combination of process and technology innovation has helped us maintain an operational efficiency which is about 100% better than any other MFI in the country
2. CGAP (an arm of World Bank) have a blog in their website, that the technology we deploy at Equitas is the best amongst MFIs in the world
3. mfTransparency.org which is a global NGO floated to improve transparency amongst MFIs has confirmed to us that we are the only MFI in the world to transparently publish the true cost of funds for the clients in the passbook which are given to clients, and by way of reducing balance method
4. Harvard Business School has written a case study on Equitas (Harvard Business School Case 510-104.)
5. CRISIL has consistently rated us well and has given us the highest rating they have ever given to any other micro finance company in the country, though we are among the youngest
6. We crossed 1.5 million client base and operate out of 7 States and 290 branches with around 2500 staff
7. Conservative accounting policy: we provide 1.25% standard asset provisioning though RBI norms do not require us to do any such provisioning
8. We have recently been rated by CRISIL under their Corporate Governance rating and we have received a Level 3 rating (on a scale of 1 to 8, 1 being best). We are the only 8th corporate in the country to have got this rating, besides being of course, the first MFI.
We also do significant number of social initiatives, under aegis of EDIT (Equitas Development Initiatives Trust) all on not-for-profit basis:
9. Primary Health Care: Our primary health care medical camps done free has benefited around 6.7 lakhs clients so far which is a record in the MFI sector globally – CSR Division
10. Secondary Health Care: Our tie up with large number of hospitals helps our clients get treated for serious illness at a discount to normal cost – Done by CSR Division
11. Health helpline: Members call this line for serious illness and the operator guides them
12. Livelihood support: We have given skill development (vocational training-Equitas Gyan kendra) to over 237884 people so far which is also a global record – Done by CSR Division
13. Education: Around 3000 children are studying through 50 tuition centres(Equitas Shiksha) we run as an after school education support – run through Equitas Trust
14. Schools: We have commenced four regular schools called Equitas Gurukul, (in Trichy and Dindigul,Salem & Coimbatore) – run by Equitas Trust
15. Retail: We run a chain of 20 grocery stores where our clients can buy groceries. Benefit of aggregation is passed on to them. They also get a card from us with a limit loaded in it which acts just like a credit card to them – run by Equitas Dhanyakosha, a Sec 25 Company
16. Ultra Poor Programme: We have commenced a programme for Rehabilitation of Pavement Dwellers in Chennai and identified 115 families in the first phase. We have moved 71 families into houses and imparting them skill development training. Most families have attained self sustenance status. Houses being identified for remaining – run by Trust
17. Physically Challenged people: We have financially supported, so far, 5199 physically challenged people of whom 461 are blind in setting up some livelihood activity so that they can stand on their own feet