SMBT(Sarvodaya Mutual Benefit
Trust) Micro-finance to SHGs
Self Help Group Approach
Promotion of Livelihoods through Mutual Benefit Trust
Social and financial performance
An SMBT needs to manage both its Financial and
Social Performance
MISSION
Mission statement analysis
SMBTs
Reduce client poverty
(what)
Reach poor
clients (who)
Improve the well-being of
the economically active poor
by providing long-term access
to quality financial services
Social performance
Provide services
that help reduce
poverty (how)
Conceptual framework:
The social performance pathway adapted
Objectives
Goals
Reaching target clients
Systems
Service design and delivery
Meeting client needs
In line with their
capacities
Alignment with social responsibilities & values
]
C
H
A
N
G
E
Background: SMBT
 Vision: Promote Sustainable Community
Institutions for Micro-finance and Rural
Livelihoods;

Mission: To Alleviate Poverty among 100,000 Rural
Poor Families by 2014;
 Current Operations: 15,000 Families in 3districts
of 2 states;
 A Professional Agency (30 professionals);
 Operational Vision: Promote Livelihoods Clusters
for the Poor
Why SMBTs
 Economy of Scale


Negotiation of loans from mainstream FI’s
Manage larger economic activities
 Reduce Transaction Cost
 Additional services can be housed
 Cost of promotion of more groups can be
minimized
 Can become a pressure point for the women
Goals and Objectives
Goal
To Promote cluster based Livelihoods through self sustainable
community based Institutions for rural poor women;
Objective
To grow Mutual benefit trusts with women membership and
sustainable external linkages;
Time Frame
Three Years
Registeration of 14 SMBTs(Future)
 In future 14 such SMBTs would be registered and link with
financial Institutions
 Around 2000 SHGs would be members of such SMBTs
 Insurance and Business development and IDS services
would be provided by such SMBTs to the SHGs
Business status till 2010
Credit given
57883900 Rs.
Revenue generated to
SMBTs
No. of SHGs benefited
948000 Rs.
No. of household
benefited
12249
1394
SMBTs
Women
SHGs
Women
Dairy
Groups in
Villages
Cluster
BASIX
Women
Rice
Groups in
Villages
Veterinary
Service
Providers
Chilling of milk in the
Entrepreneurs
to be responsible for
collection and
Transportation of raw milk
bulk coolers at
sub-cluster level
Managed by NGO and
owned by producers
Transportation
of chilled milk to
nearest market on
contract basis
DAIRY INTERVENTION (Future)
 A livelihood-cum-self help group of 12 to 15 women come
together for Livelihood activity through credit, saving and
inter-loaning
 Bank linkage for working capital and expansion
 Bulk Coolers to improve marketability
 Cluster association facilitates/ manages feed, vet care &
bank linkage
Rice Intervention(Future)
 A Village level association for collecting and aggregating
the Production of Rice
 A Cluster level Infrastructure for Storage and warehouseing
 Bank linkage for working capital and expansion
 Grading, Sorting and Packaging of Rice
 Geogrophical Indication and Brand-building of local
Produce
 Linkages to export market
THANK YOU
Prakash Choudhry