1. Livelihood Initiatives by BASIX

2. BASIX BASIX, a new generation livelihood promotioninstitution was set up in 1996 by three promoters,Mr Vijay Mahajan, Ms Bharti Gupta Ramola & MrDeep Joshi. It provides technical assistance integrated withmicro-finance services & is operating in six statesof india. It has lent more than Rs 460 million & given31,000 loans. It is the first NBFC in the country to deal withmicro-finance activities with professionalmanagement. 3. Why BASIX idea emanated There was a need to generate a large number ofsustainable livelihoods. Technical assistance, support & financial servicesare needed for sustainable livelihood. Financial services were highly underserved. For large scale rural employment wageemployment is also needed in addition to selfemployment. 4. Corporate Structure of BASIX Holding company is Bhartiya SamruddhiInvestments & Consulting Services Ltd Three subsidiaries:a) Bharatiya Samruddhi Finance Ltdb) Indian Grameen Servicesc) Krishna Bhima Samruddhi Local Area Bank 5. Basix Clientele Different segments in rural economy needdifferent mode of operation. There are three customer segments in ruraleconomy:-1. Small enterprises/commercial farmers2. Micro enterprises/small farmers3. Subsistence workers/marginal farmers 6. Subsistence workers These are managed through Self Help Groups. It includes marginal farmers in semi arid areas. From allied sector it has backyard poultry rearersand livestock rearers. It also constitutes cottage units and artisans fromnon-farm sector. 7. Micro-Enterprises They are managed through Joint Liability Groupsor through on-lenders. They include small farmers producing cash cropsor marketable surplus of food crops. Small poultry and dairy farmers are also the partof the segment. Non-farm activities employing two to five workers. 8. Small and Agro-Enterprises Direct loans on collaterals are given to thissegment. They include plantation farmers like orchards,floriculture or aqua culture. Commercial poultry and dairy farmers form theallied sector of this segment. Enterprises with 6 to 10 workers like stone slab-polishing unit also come under this segment. 9. Overview of operationsTwo profit companies for financial services and onenon-profit making company. 10. Financial Services The organization has extended 31000 ultimateloans amounting to Rs 468 million. Loan products are divided into three broadcategories:-1. Farm loans2. Non-farm loans3. General purpose loans 11. The loans also be classified as:-1. Direct loans: Extended directly to rural producers by BASIX. They are generally less than Rs 50,0002. Indirect loans: Extended through other trade intermediaries. Commission agents are employed to extend credit to rural producers. The organization is working on developing some products for weekly markets like haats that operate in rural market. 12. Non financial services Offered by Indian Grameen Service(IGS) Exploring livelihood opportunities Extending technical assistence and supportservices Human resource support Support to micro finance institute 13. Exploration of livelihood opportunities In Bihar, Maharashtra and Rajasthan IGS undertook sub sector studies of fishery,salt production and pulses. In Madhya Pradesh Promote Joint ventures Financial services to poor houshold:Chitti 14. Technical assistance and SupportServives Dry land Agricultural Productivity Enhancement Programme (DLAPEP) Micro drip irrigation International Development Enterprises- low cost technology UNDP- organizing women Saubhagya Seeds Pvt. Ltd- distribution of equipments Training in irrigation & tube well management Improving productivity of groundnut 15. Watershed Management Development of financial product IGS looked for new crops( variety of watermelon, papprika) Increase productivity of crops such as groundnut and cotton 16. SHG Quality Improvement Program (SHGQIP) Capacity building in book keeping and accounting Promoting SHGs Rural Infrastructure Revival Program (RIR) Inter Borrower Expertise ExchangeProgram(IBEX) Risk Mitigation 17. Other Functions Institutional Development Support to other MFIs Research and Consultancy Financial Performance of BASIX Operating costs much lower than others in theindustry (15.8% against 21.9%) Return on assets (1.0% against 1.3%) 18. HUMAN RESOURCE MANAGEMENT 19. ELABORATE SELECTION PROCEDURE(PSYCHOMETRIC TEST) PERIODIC EMPLOYEE ASSESSMENT REMUNERATION SYSTEM EMPLOYEE TRAINING:- PEER TRAINING ON-THE-JOB TRAINING VISITS TO OTHER UNITS ANNUAL STRATEGIC PLANNING SESSIONS 20. CUSTOMER SATISFACTION AUDIT 21. EXTERNAL AGENCIES CONDUCT THEANNUAL CUSTOMER SATISFACTION AUDIT HIGHLIGHTS OF THE AUDIT ARE:- TWO-THIRDS OF CUSTOMERS ARE POOR INDIRECT LOANS CUSTOMERS RATE BASIX HIGHER AS IT LENDSCREDIT FOR PURPOSES NOT COVERED BY OTHERS APPROACHABLILTY, FRIENDLINESS OFPROCEDURES AND TIMELINESS OF LOANS FLEXIBILITY IN DISBURSEMENT AND RECOVERY 22. AREAS OF CONCERN:- HIGH RATE OF INTEREST HIGHER TRANSACTION COST LEVEL OF AWARENESS ABOUT BASIX LOW INTERMEDIARIES CHARGING HIGHER RATE OF INTEREST THAN SPECIFIED 23. CONCLUSION UNIQUE WAY TO SERVE THE NEEDS OF CUSTOMERS THROUGH A MIXTURE OF CHANNELS. LENDING METHODOLOGIES ARE AIMED AT REACHING THE POOR AT REASONABLE AND MARKETED RELATED PRICES FOCUS ON MISSION OF SUSTAINABILITY AND SERVING THE POOR. SUCCESS DEPENDS LARGELY ON ABILITY TO ATTRACT LOWER COST FUNDS.