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Right to Sustainable Livelihood (Micro Finance)
(Mahila Arthik Vikas Evam Rin Yojana)

Striving to achieve Millennium Development Goals

Goal 1: Eradicate Extreme Poverty and Hunger
Goal 3: Promote Gender Equality and Empower Women
Goal 8: Develop a Global Partnership for Development

Economic Empowerment is a key for enabling women to lead a fulfilled, productive and prosperous life. Empowerment is a process by which women take control of their lives through expansion of their choices and it is our belief that Self-Help programmes combined with micro finance can be one of the ways to transform women’s lives. INDCARE Trust directs sustained efforts towards motivating and encouraging women to organise themselves into Self Help Groups for credit along with skill upgradation programs.

INDCARE’S ACTIVITIES IN MICROFINANCE FOR WOMEN EMPOWERMENT:

1.Providing Micro finance through SHGs

INDCARE Trust’s Micro-Finance initiative involves Capacity Building of Self Help Groups by achieving the following:

Objectives

  • To bring about visible, measurable, sustainable and progressive changes in the lives of women (and through them, their respective communities) in the target areas by enhancing their livelihood options through cooperative movements, using the Self-Help approach.
  • Designing modules in the target areas to assess the socio-economic profile and identify the resources needed to adopt and promote the Self-Help approach.
  • Strengthening the NGO partner network for the creation and growth of SHGs.
  • Providing capacity-building support to NGOs and SHGs through networking and training programmes, in order to facilitate the promotion of group-based livelihood options, while focusing on gender, leadership and credit-line management.
  • Creating a Peoples Forum to act as an advocacy pressure group for self-governance among stakeholders,and initiate people-centered development.
  • Establishing linkages with income generation activities.
  • Transforming Micro-Finance groups into viable Micro-Enterprise institutions.
  • Facilitating Micro-Insurance for informal sector.
  • Simplifying mechanisms for Self Help Group operations, making them user friendly.
  • Sensitizing women SHGs to engage in sustainable community development.

2.Facilitating the Micro Finance programmes of Rashtriya Mahila Kosh(RMK)

INDCARE Trust has adopted a practical approach for the development of good practices, addressing the immediate needs of the urban, semi-urban and rural poor in its Micro Finance Programs supported by the Rashtriya Mahila Kosh, Ministry of Women and Child Development, Government of India. INDCARE Trust has promoted Self Help Groups which are instrumental in addressing the immediate social and economic needs of the urban poor with a special focus on women through different means of implementation.

Loans sanctioned under different schemes and programs :

S. no.

Loan type

Purpose

Amount

Beneficiaries

1.

Housing Loan scheme

Construction of houses and Repair work

4,000,000.00

800

2.

Franchise loan scheme

Loans to 7 FNGOs in Delhi for strengthening of SHGs.


5,900,000.00


1180

3.

Revised revolving loan scheme

Repair work and other house hold loans.

6,800,000.00

1360

4.

Working capital term loan

Loan for smooth functioning of Mid day meal and ICDS scheme.

7,400,000.00



2000

5.

Main loan scheme

For facilitation to other NGOs

1,200,000.00


6.

Composite Loan Scheme

Production  purpose (agriculture, Raw material, Enterprise development)

5,000,000.00

1000

7.

Gold Credit Card Scheme

Production  purpose (agriculture, Raw material, Enterprise development)

30,000,000.00


6000


8.

Loan from Planet Finance

Production  purpose (agriculture, Raw material, Enterprise development)

4,000,000.00

1000




10.

PACS

Production  purpose (agriculture, Raw material, Enterprise development)

2,23,738,18.00

4500

11.

RMK Bundelkhand

Production  purpose (agriculture, Raw material, Enterprise development)

1,15,000,00.00

2300


Total



98173818

20




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Extending the SHG movement and gradually forming them into Cooperatives

INDCARE Trust has formed over 2510 SHGs and is extending the SHG movement towards cooperative formation and presently formation of 10 cooperatives is in processes, which are being supported by Delhi Commission of Women, PACS/DFID, UK and NUIA-UNDP for different slum locations in Delhi, Madhya Pradesh and Uttar Pradesh in the Bundelkhand region. It reaches out to over 50,000 beneficiaries and has provided a loan of nearly Rs. 9,81,73,818 so far.

3. Initiating efforts to set up Development Banks and Acting as a Catalyzing Agency
INDCARE hopes to provide a wider range of facilities like insurance and pensions to its customers as joint programs with micro finance. It also wants to support RMK with its new initiative to set up Development Banks in India.Thus a vital process has been identified for the empowerment of women-social mobilization and collective agency. A poor women often lacks the basic capabilities and self-confidence to counter and challenge existing disparities and barriers against herself. Often, change agents are needed to catalyze social mobilization, consciously. INDCARE Trust has always played a role of a catalyst. It helps implement government policies at grass root levels and at the same time provides feedback to the government. It has strived to eradicate the myth that government policies are only for namesake and are not feasible.

4. Acting as a safety net as well as Lending for Sustainable Development
INDCARE Trust does not only lend for income generation purposes but also for personal purposes such as housing, education and health. Many Self-Help programmes have also incorporated elements of savings, which can be used for purposes such as health insurance and emergency loans, thereby serving as private safety nets.

safety nets.
INDCARE is not just a micro finance institution, it is an organization dedicated to the welfare of the society. Thus it is engaged in many welfare and developmental activities like education, health and provision/maintenance of urban services. Earnings generated from such undertakings have been instrumental in increasing the physical well-being of the needy households, often through better nutrition and sanitation.

INDCARE is not just a micro finance institution, it is an organization dedicated to the welfare of the society. Thus it is engaged in many welfare and developmental activities like education, health and provision/maintenance of urban services. Earnings generated from such undertakings have been instrumental in increasing the physical well-being of the needy households, often through better nutrition and sanitation.

5. Taking up the challenge of Urban Micro Finance
Now that INDCARE Trust has undertaken a lot of developmental work in rural areas, it has ventured ahead to take up the challenge and fill the market void by focusing its activities on the urban poor.

Why Urban Microfinance?




  • According to 2001 census, urban poor comprise of 35- 40% of the full population.
  • Current urban market of 280 million is expected to grow to 600 million by 2030.
  • Urban market contributes to 62% of the GDP.

Only 0.01% of the urban poor have banking relationships.

 

The challenge in urban Microfinance over rural micro finance

 

  • Heterogeneity and lack of affinity among the rural population:
  • Highly competitive environment:
  • Difficult to find strong social networks and information on SHG members.
  • Lack of documentation, irregular incomes and migration among the urban poor.
  • Also a major line that divides urban and rural microfinance is the living costs. There is a significant purchasing power disparity and also the level of competiveness.

 

Case Study-A hopeful future…….. Sunita

Sunita has just finished her B.A from Delhi University.Although the basic requirements in her home were being met, she aspired to take care of her own finances. She took a loan of Rs, 25,000 with which she started a small embroidery enterprise of her own. Today, she earns about Rs.2000-3000 a month. From these earnings she pays her installments and finances her computer classes. She is a shining example of India’s youth; resilient, independent and ambitious.

6. INDCARE Trust and the Bundelkhand Region
Self Help Groups intermediated by micro finance have been shown to have positive effects on women,with some of these impacts being ripple effects.They have played valuable roles in reducing the vulnerability of the poor, through asset creation, income and consumption smoothing, provision of emergency assistance, and empowering and emboldening women by giving them control over assets and increased self-esteem and knowledge.

In December 2009, INDCARE Trust  was entrusted with the task of becoming the Nodal Agency for identifying NGO’s for the Government’s development oriented package for drought-hit regions of Bundelkhand in Uttar Pradesh and Madhya Pradesh with the support from RMK INDCARE TRUST has been appointed the task to mobilize NGO support in the 13 districts of the Bundelkhand region of Uttar Pradesh and Madhya Pradesh. This is being accomplished by identifying NGO’s who fulfill the eligibility criteria of RMK for being given a loan towards the creation of women Self Help Groups in the villages and towns. The Nodal agency would impart necessary training to the NGO’s for capacity building and help in recovery of dues of RMK. INDCARE will act as a facilitator between the NGO’s and RMK.

INDCARE TRUST has been appointed the task to mobilize NGO support in the 13 districts of the Bundelkhand region of Uttar Pradesh and Madhya Pradesh. This is being accomplished by identifying NGO’s who fulfill the eligibility criteria of RMK for being given a loan towards the creation of women Self Help Groups in the villages and towns. The Nodal agency would impart necessary training to the NGO’s for capacity building and help in recovery of dues of RMK. INDCARE will act as a facilitator between the NGO’s and RMK.

INDCARE Trust has also been entrusted with the task of being the Nodal Agency for RMK for the whole of Uttar Pradesh. INDCARE is in the process of identifying NGO's to take this project forward in the region.

7. Creating SHGs under Poorest Area Civil Society Programme (PACS) for creating socially inclusive Environment
INDCARE has worked in Bundelkhand (Lalitpur, Tikamgarh & Chattarpur) as a lead Civil Society Organisation (CSO) under the Poorest Areas Civil Society (PACS) Programme for Department for International Development (DFID), the flagship initiative of the UK Government. The PACS Programme aimed at correcting the exclusion of marginalized groups by advocating for a more socially inclusive environment.  The programme targeted poor women from 110 gram panchayats in Tikamgarh, Chattarpur and Lalitpur districts in Madhya Pradesh and Uttar Pradesh.

  • 169 SHGs completed the required  process to receive the cash credit amount from the rural bank.
  • Rs.41,60,000 was disbursed by the bank for credit support.
  • 5% of the SHGs started micro finance enterprises.
  • 30-40% individuals of SHGs incomes were enhanced.
  • 7 functional cooperatives with 2000 members and peoples’ forum with 700 members were formed.

INDCARE Trust, seeking to work further on the project has also applied to PACS programme in the current financial year for Non-Discriminatory Access to resources for diversification of livelihood options for women and other socially excluded communities. The theme of the proposed project is Livelihood opportunities for women and other socially excluded communities in the State of Madhya Pradesh.

8. INDCARE and the Gold Card Credit Scheme
The Gold Card Credit Scheme of the Government was a huge success in Delhi and INDCARE Trust played a major role in it. It provided to women identified in different Self Help Groups, a disbursement of over three crores.

Case Study

Mrs ARCHANA GUPTA has traversed a long path. She manages 5  SHG’s each with 15-20 women. Her potential was first tapped by Mrs Reeva Sood, Executive Director of INDCARE in 2001. Back then she had been a housewife for fourteen years and now she is a confident woman. She actively voices her opinions on various woman right issues with policy makers. However Mrs Archana’s success has not been alone. Along with her, INDCARE has developed the entire community of AJMERI GATE. In the neighborhood of Ajmeri Gate the women did not know the name of their neighbors. In 2001, INDCARE came into their lives. INDCARE helped Mrs Archana form a small SHG that took a meager loan of Rs. 26000 with each beneficiary getting Rs 2000 only. Within eight years, 80% of the neighborhood women are taking loans from INDCARE. This year they received a loan of Rs 1.5 crores with each beneficiary getting Rs. 25000. INDCARE does not only give them loans but also imparts them knowledge about their rights, freedoms and available opportunities. The women have raised their voices on crucial matters such as widow and old age pensions, girl’s marriage allowance, sanitation and many other needs. However what is most remarkable is the way they have grown as a community. Today the women not only discuss household issues in their social gatherings, but also discuss new pension schemes, income appraisal opportunities and interest rates. The community 

 

is held together on the basis of mutual benefit, trust and respect.

The story of Ajmeri Gate is a classic example of solidarity where individuals form into communities on a rights based approach. 

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