Report from BISWA Micro Finance Bank Initiative
Reported by Ranu Mahanti
April 13, 2007 
The NBFC which has been promoted and has become operational since 16.11.2006 has presently two directors. No additional independent Director has been admitted into the board of directors as the NBFC is a taken over Company and we have submitted for change of its name to the Reserve Bank of India as well as to the Registrar of Companies.
Once the name change is approved, we will take two independent directors into the board .The Independent director who will be first included into the Board.

May 6, 2007

No of SHGs and total members:
No. of SHGs: 23768
No of Members: 3,64,325(figure as on 31.3.2007)
No of registered federation :67
Target end of June and Dec
By end of June
No. of SHGs: 25,000
No. of Member: 4,00,000.
By the end of December
No. of SHGs: 30,000
No. of Members:4,80,000
No of registered federations by June :100
No of registered federations by December: 200
How many federations are completely functioning: 26
Amount of loan through BISWA MFI:
3,04,00,000/-(outstanding as on 31.3.2007)
Amount of Loan through BISWA:
94,81,00,000/-(Outstanding as on 31.3.2007)
Difficulties BISWA is going through for establishing the mFI:
Compliance of a number of Reserve Bank of India norms
Compliance of a number of Registrar of Companies norms 
Inadequate loan fund for providing loan to the self
help groups and the federations as per their
requirement and at their time of need
Lack of resources for providing training to the staff,
to the governing body members of the federations for
better management of their federation
Installation of hardware and soft ware for better Management
Information System, etc.

April 8, 2007


The present status of the NBFC:


The NBFC which was taken over by BISWA, a Delhi based NBFC named 

Credible Securities and Finance Private Limited was taken over by 

BISWA during April'2006 as a graduation of the Micro Finance Programme 

of BISWA to an Institutional process.


We all at BISWA are extremely grateful to the NRI's and the Friends 

from USA for their kind loan support to the tune of Rs.51,00,000/- for 

venturing this NBFC.


The NBFC ,although was taken over in April'2006 was formally 

established its office from 1st July'2006.


The NBFC has started its operation from 16.11.2006.


The NBFC has now an authorized capital of Rs.40 Million out of which 

Rs.1,50,00,000/- has been subscribed and paid up. Out of these 

subscribed and paid up of Rs.1,50,00,000/- , BISWA has been able to 

contribute Rs.76,50,000/- representing 51% of the share holding and 

Rs.73,50,000/- has been contributed by Bellweather Micro Finance Trust 



A number of forms has to be filed with the Registrar of Companies and 

with the Reserve Bank of India


The NBFC has submitted application for its change of name from CREDBLE 

SECURITIES FINANCE PVT LTD to BISWA Micro Finance Services Pvt. Ltd, 

which is under process.


At present there  are two directors at the NBFC Board out of which one 

is the representative of BISWA (Mr.K.C.Malick) and another is the 

representative of Bellweather(Mr.Ravinarasihmam).


The NBFC during the last financial year was able to mobilize only Rs.2 

crores from Bellweather Micro Finance Trust as a result of which the 

present loan portfolio is only Rs.3.40 crores .


The NBFC can appoint two independent director to its board after the 

name change formalities are over with the Reserve Bank of India and the 

Registrar of Companies.


May 24, 2007
We have increased the interest rate as under at
For lending to Federations  from 14% to 15%
For lending to NGO's        from 14% to 15%
For lending to Self Help Groups from 18% to 20%
The reason for increasing the interest rate is as
1.Increase in the interest rate by the Banks and
Financial Institutions from whom we are borrowing
funds .
2.The Interest rate increase by these banks is
substantial which ranges from 2.75% to 4%.
3.Besides the increase in interest rates, the banks
have also increased the rate of service charges
substantially which ranges from .5% to 1.5%.
4.As such the cost of getting loan funds has
substantially increased which has compelled us to
increase the interest rate against our will.
We have also increased the interest rate in respect of
the NBFC from 14% to 15% for the above reason.
We are in a position to refund the loan amount to the
lenders from whom we had borrowed funds for
establishment of the NBFC. This year we can return
up to Rs.20 lac. I request you to kindly advise the
Lenders who are interested to take back their loan
amount with interest as agreed preferably in Indian
currency . Payment in Indian Currency is preferred to
avoid the loss to the lenders in US$ as the Indian
rupees has been appreciated from Rs.43.50 per US$1 to
Rs.40.60 per US$1 as at present. I would request to
kindly advice in separate mail by each lender stating
their bank account number to which we can credit the
amount with interest in India.
Dear all, 

The amount was given to BISWA as an investment towards

the establishment of BISWA mFI for five years with 5%

simple interest. 

The answers to our questions are from

Mr. Khirod Chandra Malick, the chairman of BISWA. If

you have questions, please send me an e-mail with a

copy to Mr. Malick (kc_malick@yahoo. com). Thank you!

Regards, Joyasree (Ranu) Mahanti