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 member’s savings are used to fund loans. The results from these self-
help 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 don’t 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 taker-
members 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 women’s 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 : Women Empowerment

02. Implementing Agency : Russa Road Young Buddhist Student
Literacy Mission
03. Address : 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: Vice President

12. PAN : AAATR6521P

13. Banking Information : Instruction for Remittance in US Dollars

for Savings Account:

To : JP Morgan Chase Bank

N.Y, USA
SWIFT – CHASUS33
ABA – 021000021

For Credit to : 001-1-407376 CHIPS UID 340191

AXIS Bank Ltd., Mumbai

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