In July, 52 Nandri mothers received life changing micro finance loans which would help them start their own business or give them the finance to send their children to third level education. This programme gives a lifeline to our impoverished mothers and their families. As the mothers pay back their loans each month, these repayments enable us to lend to more than 50 new mothers the following month. The cycle of success of our micro finance loans continues to grow and flourish bringing hope and a future to new families each month. NANDRI, changing lives.
From a very impoverished family, Dinesh’s dreams of furthering his education and achieving a degree, looked impossible. With the help of an educational loan from Nandri, he completed his 3rd level education, enabling him to support his sister and her children and in turn, fund their education. Nandri has changed his life and the life of his family forever:
“My Name is Dinesh Kumar. I have a sister whose name is Anthonyammal. We belong to a poor family. With great difficulties my sister helped me to finish higher secondary education. I wanted to go college but my sister could not afford to send me for further studies. But luckily she was a member of a mothers group called Semparuthi which is one of the mother group formed by Nandri. She contacted the field staff and told her about my educational ambitions and the financial needs that I was facing. Nandri came to my rescue and gave me an Educational loan to pursue mu college studies. I finished my B.com Degree course successfully. I also finished ITI one Year course successfully.
Now I am employed and earning comfortably. I am now taking care of my sisters family and the educational needs of her children. All this was possible only due to the timely help by Nandri. I would be always thankful to Nandri and Mothers Group. At the same time I have resolved to help the needy children like me through Nandri.”
In 2012 we started our #micro-finance program. We provide 90% of the cost of purchasing a cow or sewing machine to impoverished mainly #Dalit mothers. These women live in rural communities, generally without access to clean water or sanitation or power.
Mothers self-help groups are the important crux of these communities. We have over 3,000 mothers in our programs and each mother belongs to a mother’s self-help group . Each group consists of 15 to 20 members. The group meets each month. Each mother/member pays a small monthly subscription and an annual subscription. They each save Rs.100 (approx. $1.50) per month. For many of them, this is a days’ wages.
All the members’ savings are re-lent each month to members of their own group. All loan decisions are made collectively by the group and all decisions are carefully minuted and careful records are kept of subscriptions, loans borrowings, etc. Each member has a passbook, which shows her subscriptions loans and borrowings.
Our mothers proudly show off their passbooks and their record, particularly of savings. Each group manages its own savings and loans but Nandri manages the income generation micro finance program. A mother who wants a micro-finance loan has to apply through her group. Her group will decide if they think she is capable of repaying the loan. The group will guarantee her loan. This peer pressure has insured 99% repayment rate on over 1,500 loans to date. This is a key factor in the success of our program.
Our impoverished Dalit mothers would not be normally be allowed inside a bank never mind get a loan. Loan interest rates in India could be 2% to 3% per month from a bank and treble that from money lenders. We charge 1% interest per month on the reducing balance and this has become an important part of the revenue of Nandri to allow the program to continue indefinitely and to ensure the program is properly managed and maintained. We have developed our own lending application within #Salesforce, which is a corporate level CRM system.
Most of the mothers purchase a cow with their loan and the immediate income from the sale of milk from the cow means they can repay the loan, while also having sufficient money left over for other family purchases and also milk for much-needed family nutrition. They will sell the male calves as Indians don’t generally eat beef. Female calves will go on to become a valuable mother.
Today we have a fund of Rs. 12 million or about $150,000. $50,000 of this was provided in the form of a grant by #LCIF. Repayments enable us to issue between 30 and 40 loans every month. The income, in the form of interest and subscriptions, from our mothers, ensures the long-term viability of this program.
Angelammal has two children namely Santhosh Verma studying 9th Standard and Akash in 4th standard. Santhosh is in Children sponsorship programme . Their father who was a coolie, (a daily labourer), died three years ago. Thereafter Mrs Angelammal settled in her mother’s house without any job. And the life became very difficult for her without the basic necessities to look after her two beloved children.
At that time we supported her through micro-finance income generation Loan with Cheque of Rs.20,000/- to buy a sewing machine. With this sewing machine she had repaid her loan and now she is maintaining her family.
To add to her dismay, three months ago, her brother banished mrs Angelammal from the mother’s house where she was staying with her brother due to a small quarrel. And now she lives in a rented house.Widows have a very difficult time in India. In many cases where a mother and her children are living with the father’s family and if he dies, they can be removed from the house.
She earns through this tailoring machine around Rs.3000/- and when there is village festival or other auspicious days such as “Diwali” – ‘festival of light’ she may earn Rs. 3,000/- to Rs. 6,000/- exceptionally and thus the amount she gets from the sewing machine, she pays her house rent Rs. 1,000/- and Rs. 2,000/- for provision, food and other expenses. And now she thanks NANDRI whole heartily for its support.
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