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TRANSFORMATION ADVISORY SERVICE
TRANSFORMATION OF NGOS TO MFIS
The transformation MFI-NGOs into regulated financial institutions (a section 25 company or NBFC) is a model that has been evolving for past two-three decades but has taken a great pace in last few years. It has become appealing to an increasing number of MFIs due to its anticipated benefits, such as an ability to mobilize public deposits, access to private sources of capital, improvement in governance and transparency, with an ultimate goal to reach significant scale and financial sustainability.
TRANSFORMATION ADVISORY
Apt Source has devised its program, Transformation Advisory service in such a manner that it engages with its clients on enduring basis covering a period over a year. This enables the better understanding of the client's present status, perspective, organizational issues and internal dynamics which in turn enables to give better and effective solutions for their transformation.
We offer the best services in
- Transformation of NGOs into MFIs, Non Banking Finance companies in line with the Reserve Bank's policies and directions.
- Creation of suitable organizational layers to build up consolidation of funds and governance aspects with focus on the sustainability of each layer.
- Specialized Services -understanding transaction dynamics, Statutory and Audit Compliances, Financial, Audit and tax related matters., human resources and Risk management
- Strategic and commercial solutions including Preparation of Business plan, projecting financial statements and Budgeting.
- Guidance in raising capital through Various financial options including capital structuring, inbound investments
BENEFITS FROM TRANSFORMATION :
NGO MFIs transform for various reasons:
- to offer financial services beyond lending
- to increase access
- to capital
- to comply with new legislation requiring or permitting transformation
- to gain legitimacy
- to enable employees, clients, and other stakeholders to become owners
- to meet more stringent disclosure, transparency and audit requirements
- to encourage a stronger sense of ownership on the part of promoters by providing for capital or equity in the form of shares
- to maintain stronger governance and management
FEW ACCOMPLISHMENTS IN TRANSFORMATION ADVISORY:
- Transformation of informal associations into 7 MFIs both Non Banking Finance companies and Not for profit companies, now catering to more than 5 lakhs poor men and women and having a total micro credit portfolio of around Rs 300 Crores
- Guided the transformation process of more than 50000 SHGs into legal microfinance entities
- Few of the clients whom we helped in transforming to an NBFC include Sarva Jana Seva kosh Limited, Nanayasurbi Development Financial Services, Helping Hands Micro Finance Services, Suya Seva Microfinance, Namadhu Deepam Microfinance Services etc.
- We are presently helping St. Joseph’s Development Trust to transform into an NBFC.
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