Small Savings for Big Dreams

Intervention:
Small Savings for Big Dreams In YN Hosokote, a small village in the southern state of Karnataka, a number of women from backward castes (– and low literacy levels were having a tough time meeting household expenditures with the limited, income of their husbands. Finding it difficult to meet their unexpected expenditures and their children’s education expenditures, many a time these women had to approach moneylenders, who charged exorbitant interest rates.

This was the situation until on NCO. Institute for Youth and Development (IVO), a Business & Development Correspondent of NABFINS. Showed them the way to cut – formation of women’s self-help groups (SHG4 and regularly saving small amounts. Once convinced of the role an SHG can play in ameliorating their condition, many women come together to form self-help groups of 10.15 members and began saving regularly. They even opened accounts with banks such as DCC and Village S Society and started depositing the savings collected from members on a regular basis. One suds group was Shri Bosovonondo SHG, which saved 215,000 within a year of formation and started circulating money among members in the form of an Icon.

Uniqueness:
The internal lending not only helped members cater to their consumption needs but also helped them in improving their silk weaving occupation. Despite being helpful, intend lending was not enough for members to improve their occupation considerably. This was the time when NABFINS entered their lives and offered them a loan of 2500,000. Having received the loan on 12th May 2011, the group utilized the amount to purchase equipment for silk weaving and meeting working capital requirements.

How it benefited:
The loon assistance resulted in improving the family increase considerably – a monthly income of 25,000 to 8,000. The women members of the SHG no more have to depend on their husbands to meet household expenditure, and they have becomes economically independent.