With over 41% of India&rsquos adult population lacking access to banking, credit would mostly come from the local moneylender or the village elder, and at outrageous interest rates. But thanks to the pioneering work done by Mohammed Yunus and Grameen Bank in Bangladesh, the dispossessed became a viable business proposition.
It also simultaneously made tremendous changes to their livelihood. And micro credit as an idea, took off. So, if money interests you but you want to stretch it to its limits for the right reasons, microfinance is the place to be in. It is actually banking with a difference.
Know your domain: The idea at its core is simple build a good financial corpus and lend it judiciously to a large and diverse population in small tranche. Focus on lending for revenue generating activities only and use community building as a tool to bring about empowerment as well as to ensure prompt loan servicing.
As the returns became attractive, professional players also got in to the game, and the field is getting increasingly competitive. At most business schools, the economics and finance curriculum include a section on microfinance.
It was while pursuing an MBA in rural management in 2007, Pooja Bharech, 24, also opted for a three-month elective course in microfinance. NGO Drishtee recruited Bharech as an assistant manager through campus placements, and a year later she has been promoted to Controller, Rural Finance.
But an interesting aspect of microfinance is that equal emphasis is placed on the social value that every rupee lent generates, as well as the economic value it generates.hus the curriculum invariably would provide substantial inputs on team building, social problems, issues of exclusion, gender dimensions of development etc.
Be eligible: The requirements vary from programme to programme.
Job prospects: &ldquoYou can seek out opportunities with venture capital firms, corporate social responsibility divisions of banks and private companies,&rdquo says K Sukumaran, Head-Training, Indian School of Microfinance for Women, Ahmedabad. Entry-level jobs can be found in microfinance institutes, in various banks and research institutions.
Where to study: &ldquoIt is the short-duration courses that are more in demand,&rdquo says K Sukumaran. The Centre for Microfinance at IFMR, Chennai, conducts an internship programme for two -and-a-half months to three months for undergraduates and graduate students.
&ldquoInterns absorbed into the programme can choose to work on either an existing projects or developing a new project for a period of eight to 12 weeks,&rdquo says Amulya Krishna Champatiray, Coordinator-Courses and Workshops, CFM-IFMR. Sa-Dhan in collaboration with Indian Institute of Banking and Finance (IIBF) offers a Diploma in Microfinance, a distance learning programme.
The Institute of Finance, Banking and Insurance (IFBI), established by NIIT in association with ICICI Bank has two to three-day programmes for working professionals.
A few private colleges have also ventured into the sector by offering long-term courses. In April 2008, Sa-Dhan, an association of community development finance institutions, in collaboration with the IIBF launched a diploma course for working professionals and graduates.
According to Mathew Titus, Executive Director, Sa-Dhan, &ldquoThe sector is growing and reaching out to more clients. So, we have launched a distance learning course which includes both soft and technical skills.&rdquo
Entry level salaries: The salary of a professional varies from organisation to organisation. According to Titus, a fresh executive can earn nearly Rs. 20,000 in cities. For MBAs with a specialisation in microfinance from any prominent institutes, the salary structure may start at Rs. 6.5 lakhs per year.
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 ARUN VATS, 26
IFMR Trust
Arun gives financial security to poor people such as Rajni, a local vegetable vendor who makes a meagre profit of Rs 30-40 a day. He works with the Kshetriya Gramin Financial Services (KGFS), an outfit that offers investment, insurance products or loans to buy cattle or open up small shops to poor rural customers who can invest small sums for the rainy day. &ldquoMy job is to design financial products for rural people,&rdquo he explains.
The services offered by KGFS save poor people from exploitation at the hands of local moneylenders. &ldquoIt also gives them a chance at real empowerment,&rdquo says Arun who has played a key role in bringing money market mutual fund product to remote rural customers.
Through this product, client&rsquos money is invested in the ICICI Prudential Liquid plan &ndash the minimum investment is Rs 1 &ndash but he or she can withdraw money at any point. KGFS gets its money back from the market a day later. This gives customers a better alternative and thus, in an emergency they needn&rsquot rush to a moneylender.&rdquo
Arun cites the example of Rajni to show how such services are making people in need self-reliant. Rajni has availed of a loan from KGFS at 16 per cent declining rate to invest in her vegetable business, while earlier she used to borrow from the local moneylender at exorbitant interests.
Arun says career opportunities in the social development sector are vast. &ldquoI remember, during my induction in IFMR college with an NGO, its directors, two ladies, had said that people were under the impression that jholawallahs work in the social sector.&rdquo
Pointing to himself, he says, &ldquoLike any other executive professional, I am being paid well for my work and while on work, I travel in air planes and taxis, stay in good accommodation.&rdquo As we speak, Arun orders his lunch: a chicken biryani. &ldquoIn no way my lifestyle is less than a person working in the private sector&rdquo! The only difference is Arun also gets to serve people in need.
He, too, like the others, had thought of becoming a doctor but now when he goes back to his village in Champaran district in Bihar he tells young people that there&rsquos much more to life than becoming a doctor or an engineer. Arun had lost two years preparing for medical entrance exams. &ldquoNow when I think of it I feel like a fool!&rdquo
When he cleared his CAT, he opted for Institute for Financial Management and Research (IFMR). &ldquoAlthough, I had little idea about microfinance, the fact that it could substantially improve the lives of poor people got me excited.&rdquo
Arun did his specialisation in Finance but feels that it is willingness which is important and not specialised degrees. He&rsquos just finished his field work in a small village in Thanjavur in Tamil Nadu and is already thinking of the next product he can design for these villagers. &ldquoThe smiles on the faces of people from these remote areas keep me going.&rdquo
by Sumita Vaid Dixit
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 MANJUSHA RAULKAR
Vice-president, Human Resources,
SKS Microfinance
Q: Many institutes now offer course in microfinance. What is the importance of such courses?
A: With increasing interest in financial inclusion, a lot of professional courses have made microfinance as part of the regular curriculum.
At most B-schools, economics, finance curriculum includes a section on microfinance. Microfinance courses provide the sector with manpower that understands the business of microfinance, resulting in better productivity and less training period.
Q: Is it a lucrative career option?
A: As marketers increasingly shift their focus to rural markets, there will be a need for manpower that understands the dynamics of this marketplace. Opportunities in the coming days are likely to increase.
It provides lucrative career option to the field staff/loan officer, who are matriculate, between the age group of 18-28 years, not computer literate and not English savvy. Fresh management graduates who join as area managers receive salaries averaging Rs. 7.5 lakh per year
Q: What are the growth opportunities for a professional in this sector?
A: Promotions and growth opportunities being good, the field assistants move into desk jobs at the branch office in approximately two to three years. They are then exposed to other roles at the branch like accounting and administration.
With enough experience, they can become unit heads and go up to assistant branch managers. For area managers who join with an MBA degree, the job profile will become more and more exciting as the need for manpower that understands the dynamics of the market grows over the years.
by Urmila Rao
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