NDFS - Micro Finance

NDFS offers Micro Finance Services to rural poor communities by organizing them into Self Help Groups (Surabhis). It promotes peoples organizations by networking SHGs in the villages, through which micro Finance Programme is managed. People’s organizations are owned managed and controlled by rural women. NDFS coordinates with banks and financial institutions to mobilize resources in order to on lend to members.

The program reach for the last three years is provided in the following table.


S.No. Particulars
1. Districts Covered 4 5 5
2. Blocks Covered 9 11 11
3. Villages Covered 145 151 168
4. Surabhi Promoted 856 1040 1206
5. Members (Women) 16,144 19,273 21,832

NDFS has both savings and credit products in its product portfolio. These products are briefly explained below.


Surabhis promoted by the NDFS conduct monthly meetings to make their transactions. Each member of the surabhi makes regular savings in the group. Presently the amount varies from Rs.50 to Rs.100 per month. This amount is kept at the surabhi level, surabhi uses this amount for internal lending in case of contingencies and emergency purposes. This savings is meant to satisfy the long- term needs of the members. Surabhi members decide on ways and means to utilize the amount productively in the long term. Member’s savings helps the group to leverage credit from commercial banks and NDFS.


This financial year, the major focus of the organization was on promoting income generation activities to the members. Hence, NDFS provided loans only to income generation activities and SHEPHERD complemented through its products on health and education by providing a credit window on these areas. IGP loans vary from Rs.5, 000 to Rs.15, 000/per member This amount repaid by the members inflexible installments. NDFS charging 12% interest and 6% Credit Delivery Charge (CDC) on reducing balances.


Series Particulars
Year 2003-04
Year 2004-05
Year 2005-06
Surabhi % Surabhi % Surabhi %
1. Ontime Repayment (%) 206 98.56 301 98.66 404 98.20
2. Cumulative Repayment (%) 206 98.90 301 99.87 404 99.82


SHEPHERD mobilizes resources from various banks and apex financial institutions. The following
Resource Mobilization by NDFS (Rs. In Lakhs)

S.No. Banks / Financial Institution Year 2003-04
Year 2003-04
Year 2003-04
1. FWWB 50 - 20
2. RMK 10 50 -
3. UTI 40 - 75
4. CB - 50 -
5. SIDBI 20 50 275
  TOTAL 120 150 370


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