Micro-Finance Income Generation Loans

 

Since January 2012 we have provided loans to over 1500 mothers. In essence we provide a loan of Rs. 25,000. This is about €350. The loan is repaid at the rate of Rs.1000 per month.

During the loan repayment, the mother can earn an income from the sale of milk and cow dung and also use some milk for family nutrition. By the end of the loan period the family will have a cow and probably two calves.

If a mother has difficulty with her monthly repayment, the other mothers in the group will assist to ensure that the group’s creditworthiness remains intact. 


THE PROGRAMME


This programme commenced in 2012 as a response to the problems faced by Dalits in securing loans. Income generation loans were unavailable due to caste discrimination.

Nandri now provide income generation loans to mothers to purchase a cow. This serves as an additional asset to families who are agricultural labourers and find only seasonal work. Other mothers (usually those living in the slum areas of towns and cities) use their loans to start petty shops, tiffin (breakfast/snack) centres and sewing businesses.

 
 

 

HOW IT WORKS

 

 
 
  • A mother will apply for a loan through her mothers self-help group.

  • The group effectively guarantees her loan so they will have an input as to whether she is a good risk. She must have been attending group meetings for at least six months or in the case of new groups for approximately two years.

  • The mother must have been able to show an ability to repay internal loans which she received from her group.

  • The loan is Rs. 25,000 or about €350 and is repaid at the rate of Rs.1000 per month

  • If a mother has difficulty repaying her loan in any month, the group will make up the difference

  • Generally a mother would purchase a cow or a sewing machine or some other asset from which she can make money.  

 
 

 

BENeFITS TO THE MOTHERS

 

 
 
  • The mother will feel empowered as she is now capable of earning an income.
  • The cow becomes a member of the family and an important one as it is an income earning member of the family.

  • Typically one of our mothers will earn about Rs.2000 per month working in the fields. If she has a cow she can continue to earn this money and bring the cow to the field where she is working.

  • She will earn an income from the cow by selling milk and also selling cow dung.

  • A female calf can be kept for four years until it becomes a mother and is then worth Rs.25,000. If she has the space she will keep the second cow but otherwise sell it to pay such things as college fees.