mICRO-CREDIT
In 1984-85, when SUTRA was conducting legal literacy camps in the villages, women understood that they do not own any part of the property of the husband or in-laws till they are widowed. Therefore, women suggested that they were keen to create their own assets and earn financial independence to some extent.
The answer to this was to initiate a microcredit programme for the purchase of milch cattle. Initially rupees sixty thousand was developed as a revolving fund and from its recovery, women from other groups received loan. This was a low key programme. In 1997-98, SUTRA decided to collect/document testimonies of women who had seen changes in their lives after a decade of struggle against domestic violence.
Women unanimously agreed that physical violence within the family has minimized and life has become much less hazardous. They suggested that the way forward for them lies in earning financial independence at a much larger level and decided to convert their Mahila Mandals into Self-help groups. Rashtriya Mahila Kosh supported this project by providing a credit of rupees ten lakhs.
The answer to this was to initiate a microcredit programme for the purchase of milch cattle. Initially rupees sixty thousand was developed as a revolving fund and from its recovery, women from other groups received loan. This was a low key programme. In 1997-98, SUTRA decided to collect/document testimonies of women who had seen changes in their lives after a decade of struggle against domestic violence.
Women unanimously agreed that physical violence within the family has minimized and life has become much less hazardous. They suggested that the way forward for them lies in earning financial independence at a much larger level and decided to convert their Mahila Mandals into Self-help groups. Rashtriya Mahila Kosh supported this project by providing a credit of rupees ten lakhs.
Economic independence is a prerequisite for sustainable empowerment of women. SUTRA aims to achieve this through its micro-credit programme. It is normally difficult for women to take up a loan that has a reasonable level of interest rate. These loans are given by a group to one of its own members and it is decided democratically who is most in need.
On the other hand, SUTRA runs a programme of external credit assistance in order to give loans for bigger investments. Most of these loans are used to purchase cattle or to start a small daily needs shop. This enables women to earn a regular income and at the same time, to rise their self-esteem and their relative position within the family.
SUTRA’s philosophy behind facilitating access to economic resources is because it is deemed as an important aspect of self-development. The fact that the collective has the capability to directly help a member of its group can be seen as positive step towards their own financial freedom. Women feel better as they know that they are not completely dependent on someone else.
On the other hand, SUTRA runs a programme of external credit assistance in order to give loans for bigger investments. Most of these loans are used to purchase cattle or to start a small daily needs shop. This enables women to earn a regular income and at the same time, to rise their self-esteem and their relative position within the family.
SUTRA’s philosophy behind facilitating access to economic resources is because it is deemed as an important aspect of self-development. The fact that the collective has the capability to directly help a member of its group can be seen as positive step towards their own financial freedom. Women feel better as they know that they are not completely dependent on someone else.
