Aug 4, 2008

MicroFinance and Energy - Rural Sector

Folks, am back and am seriously evaluating options through which microfinance can be provided to financially challenged rural folk to avail of energy solutions. It may be my naive assumption that finance is stopping people residing in rural areas to avail of an energy solution ( other factor being the information and awareness that such a solution exists).

Typical default rates in a microfinance scenario are less than 1 %. I am informed that Indian banks are being incentivized to work in this sector deemed as a priority lending area. NGOs can constitute the role of an executing agency.

If all stakeholders come together and work towards a rural energy solution - distributed energy model - a solar lantern in every rural household, the Indian villages would have a different look. Have I overlooked the most critical piece - the folks who apparently need this solution ..would seek comments from all you rural management experts who have sold soaps and motorcycles and tractors in this segment..

2 comments:

Manuj said...

Maybe a joint venture on profit sharing basis can be the basis of micro finance. A little tweak here & there, more need based incentives and more profitability-more share.

bpt said...

check us out at www.greenmicrofinance.org - this is what we do!!

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