An Introduction

Microfinance has evolved over the past quarter century across India into various operating forms and to a varying degree of success. One such form of microfinance has been the development of the self-help movement. Based on the concept of self-help, small groups of women have formed into groups of ten to twenty and operate a savings-first business model whereby the members savings are used to fund loans. The results from these selfhelp groups (SHGs) are promising and have become a focus of intense examination as it is proving to be an effective method of poverty reduction. Experience worldwide shows that when microfinance services reach women, the benefits are particularly sustainable. Savings rates are higher; group life is more intensive; repayment rates are remarkable; enterprise growth and graduation are stronger; and there are measurable improvements in child nutrition and education, family health and household sanitation, shelter and general welfare. Self-help groups (SHGs) were piloted by NGOs, notably MYRADA in India in the mid-1980s, in order to provide financial services to poor people. What started as a pilot programme has now become a movement for social empowerment particularly for rural poor women. The Society has realized the potential of this vehicle to change dynamics of the rural landscape and has decided to undertake the formation of Self Help Groups, providing funds and guiding and maintaining those Self Help Groups.

Self Help Group

Self Help Group (SHG) is a system solely targeted to poorer section of the people to uplift their socio-economic condition from grass-root level. There are many private and nationalized banks in India all targeted to rich people only. It is natural that all banks seek security of their loan money, and so

they have to ask many required papers such as property ownership, collateral security etc., which poor people dont have. But in case of Self Help Group, the members can get small scale loan (Micro credit) according to their requirement and business size without having great difficulties. Self Help Group Formation The authorized persons use to go to rural area, and do meeting with women and form Self Help Group, each group having 10 to 20 members, and appoint one able woman as collection officer (C.O). One C.O can control 20 to 30 groups. Each and every group member will have to deposit Rs. 10/- every week as saving money. This money is refundable at the year end with 5% interest annually to individual members. This system helps the poor people develop saving value and unity. C.O. duty is to collect this saving money as well as loan repayment money from all the members she controls. Above 10 C.Os, there is a supervisor. Her duty is to supervise all C.Os only. Procedure of Loan From each particular group half of the members can apply micro credit loan after three months completion of their weekly saving. The other half members from that particular group will be grantors of loan takers. This time the loan takermembers will have to deposit Rs. 10/- of their original saving as well as principal and interest money weekly. The moratorium period is two weeks. The interest is 15% annually. After another three months completion, the other half members are also eligible to apply for loan. This time the first half members who have already taken loan will be the grantors of them reciprocally. Each and every member gives pressure among themselves to maintain their good record, because loan sanction is depending on their weekly savings and loan repayment record. In case somebody fails to repay the loan amount, it will be adjusted from her own saving money and grantors saving money. In this way, the loan amount given to the members is fully secure.

Admission Fees Rs. 10/= is collected from each and every member as for admission fees. Members will have to pay only one time and it is not refundable. Social Security Fund Rs. 20/- for this fund is collected from loan recipients each time they take loan. This fund is collected to fill the gap, in case any member passes away without completing her loan repayment. This fund is also non-refundable. Margin Money Ten per cent of the loan amount will be kept as margin money. This margin money will be refundable at the maturity time without interest. This margin money is kept aside for fulfilling in case of failing of a member to repay the loan.

Market Analysis India attained one billion populations on 11th May, 2000. 60 % of its population living in rural areas are below poverty level (BPL). One of the greatest problems for government of India is that there are too many jobless people in the country. It is not possible for the government to provide each and every body with a job. Many jobless youngsters feel frustrated, when they have no permanent income, and they become anti-social. Another problem the government of India is facing is women empowerment. Traditionally women are treated differently from their male counterpart. Even now in rural India many people think that womens job is to become house-wife, totally dependent on her husband. Women Empowerment may be the best policy to uplift the socio-economic condition of rural India teeming with many millions of people. Knowing the best potentials of women empowerment, the government of India also supports Self Help Group (SHG) a lot. Moreover, it is assumed that most of women are having saving awareness and saving mentality. Traditionally and socially they are kept aside for house-work only. Now when they have got an opportunity to do the work side by side with their counterpart, each and every woman wants to do something by availing micro credit loan. It is a huge demand of the hours of rural India. Direct benefits Rural poor women will get an opportunity to do small scale business depending on their regional condition and marketability. They will be financially independent. Income will be more in the family and community. Awareness on unity, teamwork, women rights and health care will increase. The Society, which provides loan also will be developed.

IDENTIFICATION
01. The Title of the Project 02. Implementing Agency Literacy Mission 03. Address : : Women Empowerment Russa Road Young Buddhist Student

: Kathor, P.O. Badu, P.S. Barasat, (North) 24 Parganas, Kolkata 700 128, West Bengal, India. 04. Telephone / Fax No. : 033-25263417; (Mob) 9830276407 05. E-mail : ndbatha@gmail.com 06. Web : www.bmission.net; www.bmission.blogspot.com 07. Registration No. : S/81559 of 1995-96 08. F.C.R.A. No. : 147110495 09. 80G Regd. No. : DIT(E)/361 8E/20/2001-2002 10. Contact Person : Ven. Dr. Nando Batha 11. Position in the Organisation: 12. PAN : Vice President

AAATR6521P : Instruction for Remittance in US Dollars

13. Banking Information for Savings Account: To :

JP Morgan Chase Bank N.Y, USA SWIFT CHASUS33 ABA 021000021 : 001-1-407376 CHIPS UID 340191 AXIS Bank Ltd., Mumbai

For Credit to

For Further credit to : AXIS Bank Ltd. Kolkata Main Branch SWIFT AXISINBB005

Ultimate Beneficiary : Name: Russa Road Young Buddhist Student Literacy Mission S.B. A/C No. 021010100009202