Posts which have been tagged with: micro-credit.

Milk in the Morning

This is Jaya Sekar (left) and Vinayakamurthy (right). They meet each morning at 6:45am, when Vinayakamurthy comes to milk Jaya’s cow. Jaya lives in Aranganur, a village on the banks of the Chunnambar river near the town of Pondicherry in India.
 
Jaya is a beneficiary of Sharana’s micro-credit program. She is 43 years old, and the mother of two girls. Her husband died in an unfortunate road accident this past May. Things had been difficult as a complete family, and now the burden is wholly on Jaya to provide for her daughters. Jaya started a business with a micro-credit loan from Sharana in 2005, with just a single cow. She repaid her loan a year later, in 2006. Between then and now, she has acquired 3 additional cows and sold 2. One died, but was covered by insurance whose claim returned some funds for the loss to Jaya. She now runs her small business with 3 cows, and has 2 calves.
 
This is Vetrivelan, known to us all simply as Vetri. Normally, he is home with his family in Pondicherry at 6:45am. But this morning, he came out to Angalakuppam to visit Jaya and the village. Vetri is a veteran Sharana social worker who has known Jaya and her business plans from the time of its inception, and who keeps track of how she is doing.
 

It has rained all night, and everything is wet. Jaya and her daughters live right next to the cows in a simple thatched hut with an open bathroom. The rain makes life all the more challenging.
 

Vinayakamurthy arrives from Pondicherry to milk the cows. He has been in the milking business for 30 years, and charges a monthly fee for milking and distributing the milk.
 

Why is Jaya not milking her own cows? It is customary for women to tend to the cows and men to milk and distribute, both for reasons of physical strength and skill, as well as for other social beliefs related to caste purity. Jaya explains that her role is to feed and care for the cows, and assist in the milking by calming them, since they are each so sensitive. She also performs pujas on Fridays to pray for the good health of her animals, and a good yield in milk.
 

Vinayakamurthy has two sons himself, who have studied computer science and will not take over his daily job. For now, however, Vinayakamurthy feels he is doing good business.
 

Soon the milk vessels are full of milk. Each cow gives 8 litres of milk in the morning, and 6 in the evening, when the milking process repeats. Jaya sells the milk at Rs. 20 per liter. Vinayakamurthy delivers it in town. Most of it is purchased by restaurants in Pondicherry.
 

Jaya keeps an account of the liters obtained and sold in her daily record book.
 

Here, Vetri is discussing the status of work with Jaya and Vinayakamurthy.
 

By 7:15am, Vinayakamurthy is setting out for Pondicherry town with full canisters of fresh Angalakuppam milk.
 

Post idea, images, and storyboard courtesy Peter Kabel.

Micro Credit

Sharana has established methods by which to extend of micro-credit, or small scale loan assistance, to women in Angalakuppam. These loans allow women to start their own small businesses, allowing them to generate income and thereby become autonomous. At its peak, there were 49 members participating in Sharana’s micro-credit program at Angalakuppam: 7 groups of 7 women each. In order to obtain a loan, the beneficiary must provide the Sharana social worker with an application detailing the type of business activity and budget for that activity. Women are then organized into small groups; each group elects a manager. The age range for those participating in the micro-credit program is 18 to 55 years. Sharana does not finance interest free loans but requires beneficiaries to perform small jobs such as landscaping and maintenance at the local community centre. In this, Sharana aims not only to empower the individual woman, but also emphasize the importance of collective responsibility and ownership of the community center.

Loans have been used to finance various projects such as: Livestock and Agricultural Products, Sewing Machines, Idli Shop, Grocery store, Telephone booths, Fishing Nets, Green Coconut sales. [For livestock loans, Sharana purchases insurance in order to safeguard its investment.] The program of micro-credit has not only increased the income of beneficiaries but it has also brought confidence to each and made them aware that they have not only a means to become independent, but a valuable, contributing role in society. Thanks to this micro credit programme our living conditions have improved a little bit.

Today at least I can have a positive outlook towards life.  There was a time in my life when I had lost hope with life and life seemed a journey of hell.  But today thanks to Sharana we have the possibility to share the platform with other women who have somewhere the same problems.  This programme of Micro credit not only has helped us economically but also given us a confidence and hope—Govindammal

Repayments: Loan repayments are made every 15 days, to the designated social worker. Repayment amounts depend on the amount of the loan.  On average, it amounts to Rs 250 (or 5 €) per fortnight.  A loan of Rs 7,500 (150 €) should be repaid within 18 months. Top-up loans are allowed only when prior amounts are repaid. Sharana’s micro-credit loan program has a repayment rate of approximately 70%.

At present, Sharana is investigating the prospects for developing micro-lending schemes in Mathur. In Angalakuppam, however, the scheme is in a monitoring and collection phase due to a shortage of funds. As more funds for micro-lending become available, Sharana will extend further loans to women who continue to apply.