Share Microfin Limited

SHARE MICROFIN LIMITED

1990-91 SHARE's Formative Stage

Mr. M.Udaia Kumar, SHARE's Founder,Chairman and Managing Director (CMD),was involved in providing training programs to the rural poor enetrpreneurs in skills development.However, trainees were unable to access finance from financial institutions in order to put their skills to practice, limiting the impact of the training received.

At a conference on rural development he met a participant from the Grameen Bank of Bangladesh and heard about Grameen Bank. His interest was piqued and he traveled to Grameen Bank in Bangladesh. After being convinced that financial services can be provided without colleteral he took up a study on Grameen Bank, SEWA Bank, the informal financial sector and started the microfinance operations in SHARE which was a non profit entity.

1991-1994 Action Research Stage

SHARE (Society for Helping and Awakening Rural poor through Education) started micro-credit operations as a two year action research project with a recoverable grant of $25,000 from the Asia Pacific Development Centre, Malaysia and a soft loan of $35,788 from Grameen Trust, Bangladesh. Two branch offices were opened in Kurnool and Guntur Districts of Andhra Pradesh -- two distinctly different geographical and economic regions. The action research project achieved its targets within a year and SHARE continued to expand its activities through these two branches. The foundation for the future organisation -- design and planning of the lending methodology, information systems, staffing plans, formats and procedures were laid at this stage.

1994-1997 Program Institutionalization

SHARE's outreach continued to expand through its two branches. In 1995-96 SHARE borrowed funds from NABARD and SIDBI, two Government Devolopment finance institutions (Banks) and FWWB to expand its services. In 1996 SHARE opened two new Branches in Guntur & Prakasham Districts of Andhra Pradesh taking the total number of branches in operation to four and increased its outreach. In 1996 the Dachepalli branch in the Guntur District acheived operational self sufficiency.

1997 SHARE's Major Expansion

In April 1997 SHARE increased its outreach and expanded in a very big way by opening six new branches taking the total to ten branches. Five branches were opened in Guntur district and one branch was opened in Ranga Reddy district of Andhra Pradesh. The Dachepalli Branch in Guntur District achieved financial self sufficiency, covering all the operating expenses including cost of funds borrowed. This has been the achievement of SHARE within three and half years. SHARE has now a viable branch and a proven model at the field level which can be replicated in other parts of India as well. The main vision at the time of setting up SHARE was to provide financial services to poor. But over a period of time the importance of financial viability was recognised and steps toward this direction were undertaken

Area Of Operations

Click on the Disricts to get the list of branches

Guntur : Amaravati, Bhattiprolu, Edlapadu, Ganapavaram, Krosur,

Mangalagiri, Peddanandhipadu , Pericherla, Prathipadu,

Sathenapalli, Srinivas Nagar, Tenali, Vinukonda

Karimnagar : Sirisilla, Metpally

Kurnool : Veldurthi, Kalluru, Ymmiganuru, Nandikotkur

Nizamabad : Bodhan, Kamareddy, Nizamabad, Armoor

Prakasham : Addanki, Inkollu, Martur, Medarmetla, Paruchuru, Podilli, Santamangaluru, Ongole

Rangareddy : Tandur, Peddaammul, Gumasta Nagar

Nellore : Venkatagiri, Gudur, Naidupeta

Top

Srikakulam : Rajam

Vizianagaram : Bobbili, Parvathipuram

Khammam : Khammam, Madhira, Wyra, Sattupally

Krishna : Gannavaram, Gudivada, Hanuman Junction, Ibrahimpatnam, Jaggaiahpeta, Kanuru, Mylavaram, Nandigama, Nuziveedu, Tiruvur,

Vuyyuru

Nalgonda : Kodada, Miryalaguda, Suryapeta, Nalgonda

WestGodavari : Eluru, Nidadavolu, Tanuku

MahabubNagar : Mahabub Nagar, KothaKota

EastGodavari : Mandapeta, Rajahmundry, Ramach.Puram, Samalkota

Chittoor : Srikalahasthi

Future Plans

Andhra Pradesh has a population of about 80 million out of which 39% are living below poverty line. SML aims to reach out to 1.8 million households through 475 branches in the next five years (2004- 2009). The total money disbursed at that stage would be Rs.3,515 crores (US$ 78.11 billion) and all operations will be on the lines of a community based financial organisation.

SML plans to link all branches with the network to access data online and work for institutional viability.

Projected Growth & Outreach for 475 Branches

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