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Literally microfinance was a movement for providing ideological support to poor and backward class of people in the society as much as possible towards permanent access to an appropriate range of high quality financial services to enable them to come out of poverty and lead a meaningful life.  That apart, microfinance was a tool for promoting economic development in the country as well as for employment and growth through the support of micro-entrepreneurs and small businesses. In fact, microfinance is a broad category of services, which includes microcredit, a provision of credit services to poor clients.

Microfinance may be defined as a form of financial services for the entrepreneurs and small businesses which are not having access to banking and related services. Two main mechanisms for the delivery of financial services to such clients are: (1) relationship-based banking for individual entrepreneurs and small businesses; and (2) group-based models, where several entrepreneurs come together to apply for loans and other services as a group.

Micro-Enterprises sector has been recognized as an important pillar of economic growth all over the world. It is characterized by low investment requirement and operational flexibility. Micro-Enterprises play an important role in the development of the country because of its innovative entrepreneurial spirit.

In order to make the financial services as well as other facilities available to the poor people having no asset to offer as security, Sahara Utsarga Welfare Society (SUWS), an NGO, stepped into the world of microfinance for their all round development in the state. SUWS believed that financial inclusion which may be defined as the process of ensuring access to financial services and timely as well as adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost, is the only solution and it can bring in change in the financial health of the poor society. As such right from the beginning SUWS started working in the direction for benefit of the people belong to disadvantaged and low income groups and their thinking was proved to be correct. With the passage of time SUWS field workers penetrated the poverty and downtrodden segment in the interior villages of the state and served the people to make their venture a grand success.

SUWS has not only spread its wings in the field of microfinance, it has taken care of other sides of human life. When they have noticed that the rickshaw pullers are working without any social recognition and social security and their standard of living is very poor, it has analysed and taken all the measures to wrap it up. It may be mentioned that after USA visit by Sri Sudipta Banerjee, Secretary, Utsarga Rickshaw Sangh Project was undertaken in 2016 in association with American India Foundation (AIF) for changing the life style of Rickshaw Pullers. This is really addition of new feather in the cap of SUWS which has already distributed more than five thousands of rickshaw under this running project. Sahara Utsarga is keeping constant watch on the difficulties of the poor and explore whether any innovative work can be undertaken for their benefit.

Sahara Utsarga has observed that many of the students in the state are not getting proper guidance for appearing in competitive examinations and they need to be geared up for their success. With this objective Utsarga Skill Academy was established in 2017 to extend necessary support to the students, those who intend to appear competitive exams for their employment in different Govt. Semi-Govt organizations and get full value of their merits.

We are proud for being crowned as winner of  India 5000 Best MSME Company  2018. This is really an achievement on the part of the organization and success for the members of the staff at all levels.

SUWS is considered as source of financial services for entrepreneurs and small business that do not have easy access to banking and related services. In many developing economies including India, Small and medium enterprises (SMEs) plays a crucial role in employment creation and income generation and SUWS has been maintaining the following mission and vision throughout  its journey.

Before concluding I take the opportunity to extend my thanks to all agencies, advisors and Govt. departments & their representatives, directly or indirectly associated with us as well as members of the staff for their contribution to reach the goal.

Microfinance was developed as an alternative to provide loans to poor people with the goal of creating financial inclusion and equality. Muhammad Yunus, the Nobel Prize winner from Bangladesh, introduced the concept of Microfinance in his country in the form of the “Grameen Bank”. NABARD fell in line with that idea and applied concept of Micro Finance in India. The concept Micro Finance includes financial services such as Saving A/c, Insurance Fund & credit,  provided to poor & low income clients so as to help them to raise their income level & improve standard of living.

It may be mentioned that microfinance has already established its success as a poverty reducing measure, but the present challenge is to make the microfinance sustainable and universal. By increasing the scope of microfinance  (number of individuals reached), impact (effect on well-being of borrowers), depth (ability to reach the poorest of the poor) and the number of financial products, it can be made available not just to the moderate poor at whom it has traditionally been targeted, but also to the extreme poor and the vulnerable non-poor.

Performance indicators for the FY 2017-18 show that in 29 states and 5 UTs served by the MFIs, loan portfolio has considerably gone up during the last year. Loan portfolio(own) has gone up to Rs. 68789 Crore (including managed portfolio)in 2017-18 against  previous year figure Rs. 46842 Crore. Average loan per borrower has also increased  to Rs. 14700 from Rs. 12751. Client outreach increased by 19% and loan outstanding has gone up by 47% approx, over previous year. It may also be added that percentage of income generating loan increased to 93% from 85% which indicates that utilization of the loan went up mainly for productive purposes.

Capital Adequacy ratio for all types of micro finance institutions remained above benchmark level of 15% .

Though MFIs are gradually extending  their services and increasing client outreach, majority of the population is still dependent on informal and expensive sources, including money lenders to meet their credit needs for various purposes including business loan, working capital loan, home loan etc. Though loan portfolio outstanding in the state of West Bengal increased to Rs. 5029 Crore (2017-18) against previous year outstanding  of Rs. 3140 Crore [increase 60%], still there is room for adding other areas for service and Sahara Utsarga Welfare Society has always been exploring the possibilities to bring new clients from new areas into its fold. It has also increased the loan limit from Rs. 15000 to Rs. 20000 for operational convenience of its clientele.

During last few years several unprecedented natural calamities affected the life and the livelihoods of good no. of people and the best phenomenon is the recent flood in Kerala which resulted loss of life about 400 people and more about 600 peoples in other parts of the country. If it is may be observed  that most of the people out of the above were economically underprivileged category and clientele of MFIs at different points. Many MFIs came forward to help those people affected in the flood in different ways to overcome their losses and restore normalcy in their life. Sahara Utsarga people always remain at the service of the rural people,  particularly its clientele to help them out in any such emergent circumstances.