Success of Credit Schemes in Uruli Devachi in India

Female: These women in the Indian state of Maharashtra are all
entrepreneurs. Before starting their businesses they were living
below the poverty line. But now they're benefiting from a new
scheme which is bringing the banks closer to poorer people,
particularly women, and making credit more widely available.

Uruli Devachi is a rural village with around 2000 inhabitants.
Many of their lives have been transformed by the credit scheme
co-ordinated by India's national bank for agricultural and rural
development, which started five years ago and was supported by
the International Fund for Agricultural Development (IFAD).

The main thrust of the scheme has been to gather women into self-
help groups each with around 20 members. The groups act as mini
credit unions, where women put small amounts of money aside
each week. The group leader has been trained in book keeping and
she monitors the small subsistence loans which women take out
from the group pot.

Loyalty to other group members ensures a 100% pay back rate.

Vandana Jadhau: The role of the self help groups from the point of view of the bank
on the one hand and village development on the other. These
women used to be very shy and hardly ever came out of their
homes but through participation in the groups they have become
bolder and more active and they're able to discuss things.

Female: The women from the different groups deposit the group savings in
their local branch, located in a nearby village. The first loans the
women take out from the self help groups are for basic needs. The
second are usually granted to start up a business. Once the business
kicks off they may then request bigger loans from the bank,
through the village councils, who put them forward. This is
additional security for the bank. Repayment rates are 100%.

This umbrella making enterprise is run by a group of women—a
good way to begin if you're new to business, as you can build up
confidence by working with others.

Development workers help them make the initial orders for the
materials. And, to start off, the project gave them an interest free
loan. This, they've already paid back having generated plenty of
profit to divide amongst themselves. Having understood how the
system works, the group will borrow from the bank in future.

Kamar Sultana Khan: I was deserted by my husband and before the Self Help Group
stated up all I did was domestic chores. I've had training in book
keeping and by getting together with other women I've gained
more friends, a business and more awareness.


Female: Jijabai Kumbhar is a member of the same self help group. She
makes flower pots and stoves using clay from the fields which is
strengthened with a mixture of ash and sorghum husks. Her
husband has never worked so she is the family's only bread winner.

She secured a bank loan to set up her businesses three years ago.
The loan was over a five year period but she too has already paid it
back.

Jijabai Kumbhar: There have been lots of social changes in the village through the
self help groups. When a little boy in the village needed a heart
operation all the groups asked everyone to pay 10 rupees, so they
collected 14,000 Rupees and he's okay now. We've got roads built.
We've done some tree planting and got improvements in sanitation.

Female: In the village of Ranjangaon Ganapati, Kamal Shinde runs a
catering business.

She is one of the great success stories of the Maharashtra Rural
Credit Programme. Her husband left her several years ago and
destitute she turned to farm labouring, until the project offered her
small business training.

Kamal opted for catering because that was where her skills lay.
She thought of the masses of pilgrims that flock to a nearby temple
and approached the elders.

They agreed to rent her premises to open a canteen. Five years ago
she secured a loan and set up her business which has been a huge
success. Kamal now employs five other women, who she houses in
property bought with her profits. And now she's chairman of her
village council.

Kamal Shinde: I used to be a farm laborer when my husband left me and our
young child. I didn't pay much attention to my son's education but
since I started the business I've been aware of how important
education is for my child. I'm also employing five other women
and my husband has come back to me. Lots of organizations have
helped me and I'm very grateful. I'm now a very confident and
independent person.

Female: Kamal recently secured a contract to supply 60 lunchboxes a day
to a local tire factory after management tasted her food at the
temple. Her next plan is to buy land and build a restaurant.