Empowerment of Women through Microcredit Program
Who are the Beneficiaries :
13954 marginalized families in 26 mandals of Andhra Pradesh.
Brief description of the project:
This is a thrift and credit programme for the marginalized women. These women cannot get credit from banks as they cannot offer “security”. In the rural areas the money lending -interest rates are very high. Credit for development needs or for emergency is difficult to get. The micro credit programme is to give credit to women. The members join a”Mutually Aided Cooperative Society” (MAC). MAC 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 share holders and at the end of the financial year the accounts are audited and the profits are shared equally with the members . It is a fully democratic set up where women are 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 the 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 a agreed no. 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
- Total thrift – Rs.3,20,00,000
- Loan given in 2012 – Rs.6,60,18,000