Mi India Brochure.pub

The need for social investment
Proud to be Indian
A daily struggle
India is one of the fastest growing
economies in the world. Many Indians,
within and outside of their home country,
are gaining recognition for their innovation,
entrepreneurship and business expertise.
Around the world, Indians are breaking new
ground.
Two square meals a day. A place to sleep at
night. Hope for the future.
Proud to be Indian?
However, India is also home to the largest
number of hungry people in the world today.
Caste, gender and class discrimination,
child labour, lack of access to education and
unemployment continue to be harsh
realities of life for millions of people in India.
India is home to the largest
number of poor people in the
world, with over
900 million people
living on less than US$2 a day.
Source: United Nations Human Development Report
For many Indians, these are simply out of
reach. Without skills or an education, many
Indians are faced with the challenge of
supporting their families with little or no
resources to draw upon.
So what can we do?
The sheer scale of poverty in India can seem
overwhelming. How can we begin to make a
difference to the lives of our fellow citizens?
A social investment in a sustainable,
scaleable poverty alleviation strategy will
make a difference. A small amount of
capital can unlock the greatest asset poor
people possess: their entrepreneurial spirit.
Through a social investment in Mi India, you
can help give a hand up to thousands of
fellow Indians.
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The majority of Indians lack
access to the mainstream
banking services many of
us take for granted.
A small loan can enable a
person living in poverty to
start or expand a small
business and work towards
a brighter future for the
next generation.
Food security
In India, 200 million men, women and
children have little or no food each
day.
Thirteen Indian states have been
classified as having alarming or
extremely alarming levels of hunger.
Overall, India ranked 66 out of 88
countries, worse than Sudan and only
marginally better than Zimbabwe.
India’s rates of child malnutrition are
higher than most countries in SubSaharan Africa. These results are
staggering and show that the need for
poverty alleviation in India is immense,
with women and children in need of
immediate help.
Source: International Food Policy Research
The reality of economic growth
As India’s economic growth makes
headlines around the world, hundreds of
millions of Indians face a life of grinding
poverty, day in and day out. India’s poor
did not escape the effects of the global
financial crisis. The United Nations
estimates that the number of Indians
living in poverty was 33.6 million more
in 2009 than if previous rates of
economic growth had been maintained.
Women in particular have been left
behind, despite their potential role in the
fight against poverty. Studies show that
when women and girls earn an income,
they are more likely than men to
reinvest it into their family’s welfare. As
Pandit Jawaharlal Nehru stated, “In
order to awaken the people, it is the
woman who has to be awakened. Once
she is on the move, the household
moves, the village moves, the country
moves and thus we build the India of
tomorrow.”
Source: United Nations
A sustainable solution
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Microfinance
Microfinance provides resources to
individuals to support and grow livelihoods.
This enables them to earn a regular income
so they no longer have to struggle to afford
food, clean water or proper shelter for their
families.
One of the most important aspects of
microfinance is sustainability. As loans are
repaid and lent out again and again, funds
are continually recycled, helping more
people.
While the impact of conventional aid
depends on a continuous flow of donations,
microfinance can achieve sustainability and
increased impact over time.
We are seeking the financial support of
social investors who understand the
potential of microfinance to fight poverty.
As loan recipients create successful
businesses, their business profits will have a
ripple effect, improving their family’s
lifestyle and boosting their local economy.
Plus, as clients invest their loans into
expanding their businesses, many will go on
to employ others— creating jobs for family
members and other people in their
community.
Born in debt, lived in debt, died in debt
Has no opportunity
to break out of the
cycle of
poverty
Born in debt, but given the opportunity
to break out of the cycle of poverty
Born into debt
Generates
enough income
to meet family’s
daily needs
Poor living
conditions
Unable to
increase
income to
repay high
interest
loan
Expands
business and
increases
income
Takes out
debt from money
lenders to pay for
emergency needs
Repays
money
lender
Income insufficient
to meet daily
needs
Repaid loan
gets recycled
Social investment in Mi India
provides capital to fund loans to
people in poverty
Receives a
loan to start
small
business
An innovative financing model
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Social investment
Social investment is different from charity.
Social investors want to maximise their
capital to achieve the greatest social
impact possible.
In addition, ongoing guidance and
technical support is provided to each
partner, helping to steer their growth and
ensuring each client receives quality
service.
An investment in Mi India will have social,
not financial, returns. It will be invested
within a rigorous governance structure,
ensuring that for every rupee you invest,
more than a rupee will end up in the hands
of the poor.
A social investment in Mi India is an
investment in a nationwide program
designed to have maximum impact in poor
communities.
Each microfinance institution partner
undergoes a thorough due diligence
process prior to initial investment, in order
to ensure mission alignment and financial
capability.
“The key to ending extreme
poverty is to enable the poorest
of the poor to get their foot on
the ladder of development.”
Jeffrey Sachs
Development economist
There are three features of our
model that increase the
effectiveness of your
investment.
Firstly, the funds that we receive are not
used to purchase goods and services—
instead they are lent to clients as loans,
with interest charged reflecting the cost
of disbursing the loan. We receive an
excellent rate of repayment—97% of all
loans are paid back. The funds can
therefore be recycled through multiple
clients.
Secondly, we are able to leverage social
investment funds with commercially
available debt.
Thirdly, the loans are employed to grow
livelihoods, creating a ripple effect and
benefiting the lives of clients’ family
members and communities.
Mi India
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Channelling social investment
Our vision
Mi India aims to mobilise social
investments to expand microfinance to
remote and marginalised communities
throughout India.
To end poverty in India by supporting
sustainable models of social investment.
Mi India will be partnering with an
established network of microfinance
institutions that share a vision: to lift
millions of people out of poverty.
To raise social capital from Indians across
the globe for providing financial services to
the poor in India, thereby enabling them to
progress out of poverty.
Our mission
Founder members
Mi India is founded by a group of Indians
who are conscious of the development
needs of India and have the desire to
contribute their skill sets to catalyse socioeconomic change that will take this nation
out of poverty.
Please visit our website for details:
www.miindiacapital.org
Lalithamma’s story
Page 6
With a bleak start to life and many
setbacks, a secure future was a distant
prospect for Lalithamma. At the age of six
she lost the use of both her legs to polio.
Before she was 10 years old, her father had
died in an accident and her mother had
succumbed to cancer. Left in the care of an
elderly grandmother, Lalithamma had to
use what little education she had to support
herself.
As an adult and mother of two, Lalithamma
continued to face great difficulties. Her
husband was often sick and his wage as a
labourer was unreliable. Lalithamma sold a
few snacks from a cart, generating just 2050 rupees a day.
Saadhana, the local microfinance
institution, recognised Lalithamma’s
potential as a businesswoman. With a loan
of 9,000 rupees, Lalithamma opened a
small stall selling snacks and groceries,
complete with a pay phone.
Today, Lalithamma is an inspiration to her
neighbours. Her income has more than
doubled to 100 rupees a day and she is
able to provide for her family, including
sending her daughter Shirsha (pictured
below) to school.
With one loan, Lalithamma is
rewriting her entire family’s future.
Be a ‘Mi Indian’
and join us in the
fight against
poverty
As a ‘Mi Indian’, you can:
• Participate in the Mi India Social Impact Forum, sharing
your views with other social investors
• Get regular updates on our website about our partners and
become informed about the impact of microfinance
• Receive newsletters and audited reports on Mi India’s
program and its social impact
• Join Mi India’s partners as they provide support in rescue
and rehabilitation efforts during national disasters and
emergencies, through financial assistance
• Increase the impact of Mi India through utilising your
networks and social entrepreneurship skills
Join the Mi India movement today.
www.miindiacapital.org
Mi India Development Trust
F-31 Ground Floor
Royal Residency
Sushant Lok-II
Gurgaon 122002
Phone: +91 124 4529500
Fax: +91 124 4529502
Email: [email protected]