CASHPOR Technical Services Pty. Ltd (Credit and Savings for the Hard-Core Poor) is a microfinance institution whose mission is to identify and motivate poor women in rural areas and to deliver financial services to them in an honest, timely, and efficient manner. CASHPOR has 24 programs in 8 countries, all with a common goal to replicate the Grameen Bank model. CASHPOR serves approximately 550,000 loan clients with a loan portfolio worth around $50 million.
CASHPOR loan services and products include:
- Income Generating Loans –
This loan is designed to enable very poor households to break out of the cycle of low income, low
savings, and low investments which again lead to low income.
- Petty Trading
Loans – This loan has a term of 12 weeks, with a Rs. 500 maximum amount for the first cycle,
and it is designed for clients who borrow working capital for petty trading.
Improvement Loan – This loan is available to clients that have borrowed for three full loan
cycles with a good track record. An interest rate of 10% on the declining balance is applied.
- Recurring Blocked 5-Year Savings in the Group Fund – This service is designed as a
safety net for group members and enables them to purchase shares in the company, hold incremental
savings, and borrow from the Group Fund.
- Recurring Voluntary 1-Year Savings –
Any amount can be saved weekly and savings can be withdrawn on demand.
–Rewards in kind, such as kitchenware, costume jewelry or cosmetics, are given to the top four
voluntary savers per year in each center.
CASHPOR commenced operations in the state of Uttar Pradesh because it has the largest rural poor population in India. Estimates place the rural population at 117 million, of which approximately 60 million live in poverty. An estimated 8% of the world’s poor live in Uttar Pradesh alone based on an international poverty line of $1.08/person/day. CASHPOR especially focuses on serving women who lack literacy and are among the poorest in the region. Mirzapur is located in Eastern Uttar Pradesh where CASHPOR is currently serving poor households in four administrative blocks. CASHPOR’s worldwide operations focus on similarly impoverished clients.
CASHPOR serves 550,000 clients with loans worth approximately $50 million.
CASHPOR achieves its mission by:
- Providing management development to project staff through
integrated regional and national workshops.
- Providing resource persons to assist in
implementation of workshops.
- Monitoring member projects’ work performance quarterly to
measure progress and spot potential problems.
- Responding to requests for technical
assistance from replication experts in order to overcome field problems and build institutional
- Initiating independent impact evaluation research.
- Disseminating information through its newsletter “Credit for the Poor,” through field reports, and through research publications.
Funding the Poor Cooperative (FPC) was started in 1993 by a team of scholars engaged in research on poverty issues and rural development, seeking new and more effective ways of utilizing and distributing funds to the poor. FPC works through local officials at the national-level, providing them with training and later monitoring and evaluating their work. By 1997, three lending branches had been started. As of September 2002, FPC’s membership had grown to 15,873. Full Story