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About Us
Background
Ownership & Governance
Service Delivery Approach
Products & Services
Background
CASHPOR Financial and Technical Services
(CFTS)
was started in September 1996 as a financial Company. The purpose of
this Company was to give access to financial services in the form of
small amounts of credit, to poor rural women, as an alternative to
the existing money lenders which were known for charging usurious
rates of interest, as well as perpetuating a never ending cycle of
debt. As the Company began to expand, it became necessary to move to
a different legal form, and so
CASHPOR Micro Credit (CMC) was
started in Dec. 2002 as a subsidiary Section 25 company of
CFTS.
CASHPOR
India has subsequently become known in the microfinance sector, as a
microfinance provider that devotes its attention exclusively to the
provision of micro-credit to the poorest of the poor, through its
unique “targeting approach” which filters the poorest clients and
lends to them.
CASHPOR
India started its operations in mid 1997 by disbursing its first
loan on 15th
September in Mirzapur District of Uttar Pradesh. The entity was
CASHPOR Financial and Technical
Services (CFTS) Ltd, working
with an objective to reduce poverty in eastern U.P. and western
Bihar through the provision of Micro finance services to the rural
poor women timely, honestly and efficiently. Its first six branches
were set up in July 1997, to cover the southern part, which was
poorer part of the district. Its next six branches were opened in
October 1998, to cover rest of the District. Its original branches
having acute poverty level were finding it difficult to become
financially viable, because of little demand of loan amount, low
population density and frequent casualties in the client’s family
leading to high portfolio at risk. The lack of market infrastructure
limited the avenues of profitable enterprise for the poor.
CASHPOR
India worked with same infrastructure until its financial breakeven.
It broke even first time in March 2003 and second time in the year
of March 2008.The story of the year has to be achivement of financial break-even by CASHPOR
Micro Creadit, as planned five year ago,with the achivement of an
Operating Self- Sufficiency of 103%,compared to the planned target
of 104%.In the event,we needed operations in 13 instead of the 10
Districts planned; but otherwise the profileof break-even is pretty
much as planned:303,145 Active Loan Client(as against the 286,965
planned), a portfolio of Rs.1,473,157,654(as compared to the Rs.151.2
Crore planned),and PAR of 1.8%(well within the target of <5%). Even
our basic cost and yield ratios are close to the targets:an Administrative
cost Ratio(ACR) of 0.13(0.14), a Total Cost Ratio of 0.26 (0.21),
and a Yield on Porfolio of 26% (22%), Fortunately our accumulated losses prior to break-even at Rs. 4.7 crore are
considerably less than the projected figure of Rs. 6.9 crore. According
to our current expansion plan, they will be wiped-off by 31st March
2009. It is therefore a happy story of which we are proud!
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