WOMEN'S RESOURCE DEVELOPMENT PROGRAMME

The Women's Resource Development Programme and the Women's Self-Help Savings (SHGs) Groups were initiated by MASUM in Purandar Block in 1991 and Parner Block in 1997 respectively.

Background -

In rural areas, it is common for families to get into large debts borrowing money at very high interest rates from local money lenders. The interest rate can be as high as 5 % to 10 % per month and though the loan amount may be small the high interest rates make it very difficult for them to repay back the loans. MASUM recognising this problem decided to initiate a savings and credit programme for rural women.

These programmes are aimed at strengthening the economic self reliance of rural women, empowering women through creating access to credit and motivating them to gradually build their own resources base.

Womens's Resource Development Programme

The Women's Resource Development Programme is broadly based on the Bangladesh Grameen Bank model and was started in 1991 in Malshiras and Mavdi villages. At present, it has 5000 members and covers 18 villages. The programme is only for women. Six to ten women from the same neighbourhood form a group and become members of ‘ Streedhan '. Each group selects a name and also elects a chairperson and secretary. Women have to save atleast ten rupees per month. These savings earn an interest of 5 % per annum and the member is free to withdraw her savings at any given point in time. Only after saving for three months do they become eligible for a loan of Rs. 1000. This amount increases in the subsequent years. The loan is available at a low interest rate of 12 % per annum and without any collateral. Only two members need to sign as guarantors. Larger loans of Rs. 10,000 and above are made available for production purposes only to members who have saved money for three years and have had a good loan repayment record. The initial loan amount has been deliberately kept small to allow women to manage funds and more importantly to dissuade men from taking undue interest in the scheme.

Group meetings are held in the neighbourhood on a fixed date every month. Two local women in each village facilitate the group meetings. The group members decide who should receive the loan in the monthly meeting. All the monetary transactions such as disbursement of loans, issuing of receipts and all entries in the passbook are made during this meeting. The group meetings are also used to disseminate information on various social and health issues.

Bachat Gat (Women's Self-Help Savings Groups)

In 1997 MASUM started SHGs in Parner block, with the aim of providing the women a space to interact freely with one another in the process of saving money from their earnings. At present, it has 800 members and covers 8 villages.

A SHG is formed when 15-20 women come together, form a group, elect office bearers (president, secretary and treasurer) from among themselves and open an account in the name of the group. MASUM trains office bearer of SHGs to maintain individual forms and passbooks of all the members of the self-help groups. These groups are entitled to loan facilities from the bank after the group completes two years. Till such the gropu resorts to internal lending with its own accumulated savings and at times MASUM lends money to the group at the terms and conditions that are in accordance with those of the bank. The group in turn lends this money to its members at the interest rate of 2 % per month. Generally loans to the amount of Rs. 10,000 are given to individual members. Savings lodged with the bank earn interest at the current rate of interest offered by the bank.

The groups meet once a month to complete the various transactions of savings, repayment and fresh loan disbursement. They are able to independently maintain the pass book and ledger entries and manage the accounts of their group. The monthly meetings also provide an opportunity to disseminate information and have discussions on various health and social issues affecting the community.

In both the Women's Resource Development Programme and the SHG programme MASUM staff does not interfere with the purpose for which women take loans. MASUM believes that women's felt needs are important enough and since it is their programme, they can use the money for any purpose and as and when they require it. The reasons for availing the loan are varied. These would include paying for medical expenses, payment of old high interest loans, purchase of books, clothes for children, payment of exam fees of children or functions like marriage and religious ceremonies, purchasing sewing machines or welding machnes and starting small business or investing in improving their agriculture.

The response of the women with reference to their loan repayment has been consistently positive in all villages. The recovering of loans on an average is 96%. Social pressure has been an effective method of recovery from willing defaulters.