Micro-credit Program - Year of Starting : 2011
Empowerment of Women through Microcredit Program
Who are the Beneficiaries :
Marginalized families in 26 mandals of Andhra Pradesh and Telangana.
Brief description of the project:
This is a thrift and credit programme for marginalized women in rural areas. These women cannot get credit from banks as they cannot offer security. This leads them towards private money lenders who charge exorbitant interest rates. Credit for development needs or for emergency is difficult to get. This often results in debt-bondage that puts the family into a trap of exploitation that can run on to the next generation.
The micro credit programme is to give low-interest loans to women. The members join a “Mutually Aided Cooperative Society” (MACS). MACS is a registered body under the MACS Act, 1995 of the Government of Andhra Pradesh, India. This cooperative society is fully owned and managed by the members. They are the shareholders and at the end of the financial year the accounts are audited and profits are shared equally with the members. It is a fully democratic set up where women members constitute the board of directors. The registration of the state federation gives more visibility to the MACS to mobilize credit from Government and non government organizations and also carry out social and developmental activities.
The members join MACS as a neighborhood group. They deposit their monthly thrift amount in the MACS account. After six months they can get a loan amounting to 5 times the thrift deposited. The interest rate is 12%. They repay the loan in an agreed number of installments and continue the thrift. Then they are eligible for a second loan and so on. The programme has hundreds of success stories where women have climbed out of the poverty trap using micro credit.
- No.of Mandals (MACs) – 26
- No.of members – 15446
- Total paid up share capital – Rs.14,06,800