Support Bihar Development Trust

Dear Friends,

Greetings from BDT!!!

We have disbursed more than Rs.900,000 to more than 160 women borrowers. Our disbursement is increasing by 70% every month.

The disbursement trend is given below.
Till 31st March, 2008 - Rs. 367,000
Till 30th April- Rs.622,000
Till 20th May- Rs.905,000

We hope to cross disbursement of Rs.1000,000 this month. We have a outstanding of Rs.710,000 at this moment. We are recieving our repayment regularly. We are recieving more than Rs.20,000 as repayments every week.

As you are observing that our pace of disbursement has increasing, I need to raise matching funds. The funding agency take their own sweet time for disbursement. We have recieved Rs.417,734 in the beginning of month from BASIX. We will be recieving Rs.600,000 from BASIX any time soon. We have Rs.110,000 in our bank account. This is sufficient for one week only.If the BASIX money comes in 3-4 days, we are just saved otherwise we may to defer the loan disbursement for a week. We do not want to do that.

Our need is given below

Months Expected Cumulative No. of Groups Expected Cumulative No. of Borrowers Expected Cumulative Disbursement
groups borrowers cumulative disbursement
May 90 180 1,040,000
June 130 250 1,600,000
July 180 340 2,320,000
August 230 460 3,120,000
September 290 660 3,920,000
October 350 900 4,720,000
November 410 1200 6,220,000
December 480 1500 7,720,000
January 550 1800 9,220,000
February 630 2100 10,720,000
March 710 2400 12,220,000

We hope to recieve 500,000 from TMN and 3,000,000 from FWWB in july. This would be sufficient for september.
The current situation is that BANKs are hesistating to lend us. We are not that creditworthy as we do not assets to match the loan amount. Funding agencies are loosening their purse strings slowly. We are trying hard to convince them to give more money. Without credit, we will be finding hard to sustain. To put in nutshell, our operative cost is Rs.100,000 per month and we are earning around 16000 per month. This deflicit will be made up when we reach the disbursement of Rs.9000,0000. We need that much amount of money in this year.

Through supporters like you, I requests you to find institutions with surplus money to support us as loan. Anyone is free to visit us and appraise our systems and processes and can check the beneficiaries directly in villages. The photos are uploaded on http://picasaweb.google.com/rchandra1231
We are supporting livelihood of 16 staff members and trying to increase the income of 100s of poor women borrowers. We have stopped two migration to Delhi and one person from Delhi has come back and joined us as staff member. Its better to earn Rs.3000 in home town than Rs.7000 in delhi.

I can not say in many words that I need money . This money will change the life of atleast 2000 people of Bihar this year. Once we are a success story, we hope to brings 1000s of crores of investment to Bihar on our shoulder.

So, I am doing my best in grounds of Bihar and rest I leave to wellwishers and almighty god.

Thanks for reading

Regards

Ravi Chandra
Regards

growth issue

Dear Friends,

Greetings!

I am very happy to report you about our progress. Bihar Development Trust has crossed Rs. 300,000 in disbursement. Till now, 68 women borrowers have been benefited through our SAMVRIDHI microfinance programme. The loan outstanding is around Rs. 255,000.

We have 30 groups of women in Bhagalpur. The effort to form groups in urban Patna is on. We hope to end with 40 groups by March 2008.We have gone slow in group formation for a simple reason that we do not have finances tied up to disburse loan to another 72 women. We hope to cross Rs. 400,000 in disbursement by March 2008.

We are facing human resource crunch also as it is tough to attract people in low salary around 2000. So, we are thinking of raising salary in near future. We have taken rented office in both Patna and Bhagalpur. We have bought a motorcycle. The operation cost is baloonning up.

We hope to recieve loan and some grant from BASIX LAMP Fund by 30 march.

We are facing the classic chicken egg problem. No one is giving money till we grow big( means portfolio in 20-30 lacs) and unless some one gives 20-30 lacs rupees we can not create that big portfolio. Now, there are another set of support agencies whose approval are necessary to get Big funding agencies to nod. To get tieups from them also requires money.

A wholesale microfinance agency gave the following comment

'' Ravi ji, aap koi big daddy dhundhiye. Ye laptop le ke ghumne se MicroFinance me paise nahi milenge.''

So, the issue is how do we grow up? From where do I find big daddy?

We are open to evaluation, audit etc. We want some one to examine our systems and give suggestions to improve up. We are doing our best to learn and implement.We will find solutions but need help and guidance from seniors and peers.

Although, the going is getting tough, but we have resolved to mobilise Rs.15,000,000 in loans and grant in year 2008-2009

Can anyone help us regarding motivating some support agencies to select us as partner under their agenda of supporting new MFI?

Regards

Ravi Chandra