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BASIX (India)
Encyclopedia
BASIX is a new generation livelihood promotion institution established in 1996 in India
. It is headquartered in Hyderabad, Andhra Pradesh. BASIX has supported the livelihoods of over a million rural poor households, of which a third have been supported directly with microcredit
worth over Rs 2000 crore
, in addition to savings and insurance services, agricultural/business development services and institutional development services. The other two thirds are supported through over 100 NGO or community based microfinance institutions, whom BASIX provides assistance in funding, training, MIS
and operations.
Founded by experienced rural practitioners, BASIX was a result of their conviction that developmental work needs to be carried out in a sustainable manner. They also believed that financial services such as micro-credit are necessary, but not sufficient to fight poverty. This is reflected in the group's mission:
, need a whole range of agricultural and business development services (such as input supply, training, technical assistance, market linkages) to be provided. To offer these services in a cost-effective manner, it is not possible to work with poor households individually; they need to be organized into groups, informal associations and sometimes cooperatives or producer companies. The formation of such groups and making them function effectively requires institutional development services. Thus, BASIX aims to provide all these services, which it calls the Livelihood Triad:
Livelihood Financial Services: including micro-savings, micro-credit, and micro-insurance.
Agricultural and Business Development Services: through local value addition, non-financial risk mitigation, productivity improvement, and alternative market linkages
Institutional Development Services: which is a conscious attempt to evolve and reinforce a set of behavioral norms and processes for an informal or formal group of people to interact and transact in a sustainable manner, to achieve the purpose for which the group came together.
BASIX also provides sectoral and policy research services, feasibility studies and other consultancy services using the analytical capability and implementation experience in various companies within the group, with a focus on contributing to the knowledge and practice of livelihood promotion. Its customers have included various international bodies, the Government of India
, and several state governments.
, Karnataka
, Tamil Nadu
, Orissa
, Jharkhand
, Maharashtra
, Madhya Pradesh
, Rajasthan
, Bihar
, Chattisgarh, West Bengal
, Delhi
and Assam
.
Since the inception of the group, BASIX has cumulatively disbursed a total of Rs 893 crore (USD 220 million) through nearly 578,000 cumulative number of loans. The loan outstanding as on March 31, 2007 was Rs 234 crore (USD 58 million) for the group with over 347,651 customers. As much as 41% of the loans went to the farm sector, which is severely impaired for want of credit and 59% to women, who tend to be financially excluded.
Savings services were provided through KBSLAB, by linking urban BSFL customers with banks/post offices and through Self-help groups in the case of Sarvodaya. The total coverage was 450,000.
BASIX covers the lives and livelihoods of its customers against various risks like death of self or spouse, critical illness, hospitalization and permanent disability. Livelihoods are covered through rainfall-index based crop insurance, livestock insurance and micro enterprise asset insurance and deposit insurance to savings customers. In 2006-07, this coverage was extended to 473,932 persons/asset owners. Over 10,000 cumulative claims have been settled amounting to Rs 36 million.
BASIX provided Agriculture/Business Development Services for productivity enhancement, non-insurance risk mitigation, local value addition and market linkages. These services were extended to 72,000 producers. Fees collected towards providing such services amounted to Rs 1.6 crore.
BASIX provides Institutional Development Services to Self-Help groups, SHG federations, Mutual Benefit Trusts, Producer Groups and Cooperatives, to enable producers to come together for undertaking livelihood activities. These services were extended to 25,110 groups, with over 683,000 members. Fees collected towards providing such services amounted to Rs 2.4 crore.
BASIX works in 20,000 villages spread over 106 districts in the states of Andhra Pradesh, Karnataka, Tamil Nadu, Orissa, Jharkhand, Maharashtra, Madhya Pradesh, Rajasthan, Bihar, Chattisgarh, West Bengal, Delhi,Assam and Meghalaya.
Since the inception of the group, BASIX has cumulatively disbursed a total of Rs 893 crore (USD 220 million) through nearly 578,000 cumulative number of loans. The loan outstanding as on March 31, 2007 was Rs 234 crore (USD 58 million) for the group with over 347,651 customers. As much as 41% of the loans went to the farm sector, which is severely impaired for want of credit and 59% to women, who tend to be financially excluded.
Savings services were provided through KBSLAB, by linking urban BSFL customers with banks/post offices and through Self-help groups in the case of Sarvodaya. The total coverage was 450,000.
BASIX covers the lives and livelihoods of its customers against various risks like death of self or spouse, critical illness, hospitalization and permanent disability. Livelihoods are covered through rainfall-index based crop insurance, livestock insurance and micro enterprise asset insurance and deposit insurance to savings customers. In 2006-07, this coverage was extended to 473,932 persons/asset owners. Over 10,000 cumulative claims have been settled amounting to Rs 36 million.
BASIX provided Agriculture/Business Development Services for productivity enhancement, non-insurance risk mitigation, local value addition and market linkages. These services were extended to 72,000 producers. Fees collected towards providing such services amounted to Rs 1.6 crore.
BASIX provides Institutional Development Services to Self-Help groups, SHG federations, Mutual Benefit Trusts, Producer Groups and Cooperatives, to enable producers to come together for undertaking livelihood activities. These services were extended to 25,110 groups, with over 683,000 members. Fees collected towards providing such services amounted to Rs 2.4 crore.[1]
[edit] References
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. It is headquartered in Hyderabad, Andhra Pradesh. BASIX has supported the livelihoods of over a million rural poor households, of which a third have been supported directly with microcredit
Microcredit
Microcredit is the extension of very small loans to those in poverty designed to spur entrepreneurship. These individuals lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit...
worth over Rs 2000 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....
, in addition to savings and insurance services, agricultural/business development services and institutional development services. The other two thirds are supported through over 100 NGO or community based microfinance institutions, whom BASIX provides assistance in funding, training, MIS
Management information system
A management information system provides information needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: people, technology, and information. Management information systems are distinct from other information systems in that...
and operations.
BASIX Group
BASIX is the brand name of a group of companies, which are:- Bhartiya Samruddhi Investments and Consulting Services Ltd. (BASICS Ltd), the holding company, through which equity and debt investments are made in the group companies.
- Bhartiya Samruddhi Finance Ltd. (Samruddhi), an RBI registered NBFC, engaged in micro-credit, retailing insurance and providing technical assistance in agriculture, business, and institutional development to its customers.
- Krishna Bhima Samruddhi Local Area Bank Ltd. (KBSLAB), an RBI licensed bank providing micro-credit and savings services in three backward districts, RaichurRaichurRaichur , is a city municipal council in Raichur district in the Indian state of Karnataka. Raichur, on the banks of the Tungabhadra River, is the headquarters of Raichur district. It was in the princely state of Mysore during the rule of Tipu Sultan...
, GulbargaGulbargaGulbarga is a city in the Indian state of Karnataka. It is the administrative headquarters of Gulbarga District. It was formerly part of Nizam's Hyderabad state...
, and MahbubnagarMahbubnagarMahabubnagar or Mahboobnagar is the biggest town in Mahabubnagar District of Andhra Pradesh, India. The city of Mahabubnagar is located at a distance of 100 km from Hyderabad. Formerly known as, Rukmammapeta and Palamoor, it was named as Mahabubnagar on 4 December 1890, in the honour of Mir...
. - Indian Grameen Services (IGS), a section 25, not-for-profit company engaged in research, development and training related to livelihoods.
- Sarvodaya Nano Finance Ltd. (Sarvodaya), an RBI registered NBFC, owned by women’s self-help groups, and managed by BASICS Ltd.
Founded by experienced rural practitioners, BASIX was a result of their conviction that developmental work needs to be carried out in a sustainable manner. They also believed that financial services such as micro-credit are necessary, but not sufficient to fight poverty. This is reflected in the group's mission:
To promote a large number of sustainable livelihoods, including for the rural poor and women, through the provision of financial services and technical assistance in an integrated manner. BASIX will strive to yield a competitive rate of return to its investors so as to be able to access mainstream capital and human resources on a continuous basis.
Strategy and Activities
BASIX believes that micro-credit by itself is helpful for the more enterprising poor people in economically dynamic areas. Less enterprising poor households need to cope with greater risks, and so they need to start with savings and insurance before they can benefit from micro-credit. In backward regions, poor people, in addition to microfinanceMicrofinance
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services....
, need a whole range of agricultural and business development services (such as input supply, training, technical assistance, market linkages) to be provided. To offer these services in a cost-effective manner, it is not possible to work with poor households individually; they need to be organized into groups, informal associations and sometimes cooperatives or producer companies. The formation of such groups and making them function effectively requires institutional development services. Thus, BASIX aims to provide all these services, which it calls the Livelihood Triad:
Livelihood Financial Services: including micro-savings, micro-credit, and micro-insurance.
Agricultural and Business Development Services: through local value addition, non-financial risk mitigation, productivity improvement, and alternative market linkages
Institutional Development Services: which is a conscious attempt to evolve and reinforce a set of behavioral norms and processes for an informal or formal group of people to interact and transact in a sustainable manner, to achieve the purpose for which the group came together.
BASIX also provides sectoral and policy research services, feasibility studies and other consultancy services using the analytical capability and implementation experience in various companies within the group, with a focus on contributing to the knowledge and practice of livelihood promotion. Its customers have included various international bodies, the Government of India
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
, and several state governments.
Outreach
BASIX works in 20,000 villages spread over 106 districts in the states of Andhra PradeshAndhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...
, Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...
, Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
, Orissa
Orissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
, Jharkhand
Jharkhand
Jharkhand is a state in eastern India. It was carved out of the southern part of Bihar on 15 November 2000. Jharkhand shares its border with the states of Bihar to the north, Uttar Pradesh and Chhattisgarh to the west, Orissa to the south, and West Bengal to the east...
, Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
, Madhya Pradesh
Madhya Pradesh
Madhya Pradesh , often called the Heart of India, is a state in central India. Its capital is Bhopal and Indore is the largest city....
, Rajasthan
Rajasthan
Rājasthān the land of Rajasthanis, , is the largest state of the Republic of India by area. It is located in the northwest of India. It encompasses most of the area of the large, inhospitable Great Indian Desert , which has an edge paralleling the Sutlej-Indus river valley along its border with...
, Bihar
Bihar
Bihar is a state in eastern India. It is the 12th largest state in terms of geographical size at and 3rd largest by population. Almost 58% of Biharis are below the age of 25, which is the highest proportion in India....
, Chattisgarh, West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
, Delhi
Delhi
Delhi , officially National Capital Territory of Delhi , is the largest metropolis by area and the second-largest by population in India, next to Mumbai. It is the eighth largest metropolis in the world by population with 16,753,265 inhabitants in the Territory at the 2011 Census...
and Assam
Assam
Assam , also, rarely, Assam Valley and formerly the Assam Province , is a northeastern state of India and is one of the most culturally and geographically distinct regions of the country...
.
Since the inception of the group, BASIX has cumulatively disbursed a total of Rs 893 crore (USD 220 million) through nearly 578,000 cumulative number of loans. The loan outstanding as on March 31, 2007 was Rs 234 crore (USD 58 million) for the group with over 347,651 customers. As much as 41% of the loans went to the farm sector, which is severely impaired for want of credit and 59% to women, who tend to be financially excluded.
Savings services were provided through KBSLAB, by linking urban BSFL customers with banks/post offices and through Self-help groups in the case of Sarvodaya. The total coverage was 450,000.
BASIX covers the lives and livelihoods of its customers against various risks like death of self or spouse, critical illness, hospitalization and permanent disability. Livelihoods are covered through rainfall-index based crop insurance, livestock insurance and micro enterprise asset insurance and deposit insurance to savings customers. In 2006-07, this coverage was extended to 473,932 persons/asset owners. Over 10,000 cumulative claims have been settled amounting to Rs 36 million.
BASIX provided Agriculture/Business Development Services for productivity enhancement, non-insurance risk mitigation, local value addition and market linkages. These services were extended to 72,000 producers. Fees collected towards providing such services amounted to Rs 1.6 crore.
BASIX provides Institutional Development Services to Self-Help groups, SHG federations, Mutual Benefit Trusts, Producer Groups and Cooperatives, to enable producers to come together for undertaking livelihood activities. These services were extended to 25,110 groups, with over 683,000 members. Fees collected towards providing such services amounted to Rs 2.4 crore.
BASIX works in 20,000 villages spread over 106 districts in the states of Andhra Pradesh, Karnataka, Tamil Nadu, Orissa, Jharkhand, Maharashtra, Madhya Pradesh, Rajasthan, Bihar, Chattisgarh, West Bengal, Delhi,Assam and Meghalaya.
Since the inception of the group, BASIX has cumulatively disbursed a total of Rs 893 crore (USD 220 million) through nearly 578,000 cumulative number of loans. The loan outstanding as on March 31, 2007 was Rs 234 crore (USD 58 million) for the group with over 347,651 customers. As much as 41% of the loans went to the farm sector, which is severely impaired for want of credit and 59% to women, who tend to be financially excluded.
Savings services were provided through KBSLAB, by linking urban BSFL customers with banks/post offices and through Self-help groups in the case of Sarvodaya. The total coverage was 450,000.
BASIX covers the lives and livelihoods of its customers against various risks like death of self or spouse, critical illness, hospitalization and permanent disability. Livelihoods are covered through rainfall-index based crop insurance, livestock insurance and micro enterprise asset insurance and deposit insurance to savings customers. In 2006-07, this coverage was extended to 473,932 persons/asset owners. Over 10,000 cumulative claims have been settled amounting to Rs 36 million.
BASIX provided Agriculture/Business Development Services for productivity enhancement, non-insurance risk mitigation, local value addition and market linkages. These services were extended to 72,000 producers. Fees collected towards providing such services amounted to Rs 1.6 crore.
BASIX provides Institutional Development Services to Self-Help groups, SHG federations, Mutual Benefit Trusts, Producer Groups and Cooperatives, to enable producers to come together for undertaking livelihood activities. These services were extended to 25,110 groups, with over 683,000 members. Fees collected towards providing such services amounted to Rs 2.4 crore.[1]
[edit] References