Micro- Credit project for rural women in Tamil Nadu, India
Requested byValampuri Foundation
Who are you trying to help? What issue are you trying to address?
Ramanathapuram District (Tamilnadu State, India) is a coastal district as well as a drought prone place. The main occupations there are fishing and agriculture, both sectors providing insecure incomes that tend to make families dependent on money-lenders and to incur debts. Many people are also illiterate and don’t know how to handle this situation. Currently, women and children are the main victims. They spend all their income to pay debts which leave the family in crisis. Because of their decreased income and debt bondage, women have to ask for loans from local money lenders, which then increase their debts.
Women in our target villages are coolies in fishing and prawn companies. Some women work as agriculture coolies. They have very little income. We organize them into self help groups. We provide training in personality development and entrepreneurship. Many women are interested in setting up small businesses such as vegetable shops, tailoring, rice vending and dry fish vending, etc. but they need capital to set up or extend these businesses. Some women have problems with money lenders, spending all their income to repay debt, leaving them in need of cash. Some families cannot afford higher education for their children, and need to take out loans for this.
What is your project and how will it help?
This project aims to provide microcredit to 2000 rural and urban poor every year in Ramanathapuram district of TamilNadu, India.
The Valampuri Foundation runs evening education centres for children in remote rural villages in Ramanathapuram district. These centres provide children with social education, hygiene, clean clothing and medical services. We organize awareness workshops and rallies on global warming and climate change.
In addition to the social upliftment and empowerment provided via the microcredit programme, Valampuri Foundation plans to provide a separate micro development scheme to every village using the interest generated from the loans.
The project will:
1. provide micro credit to 2000 rural and urban poor every year in Ramanathapuram district of TamilNadu, India.
2. achieve an estimated portfolio outstanding of Rs. 10 crores every year.
3. increase the income level of beneficiary families who avail themselves of a loan.The interest generated from the loans will be used for the village as per the percentage of total interest paid by them.
How can other people partner with you on your project?
We prefer three types of partners for our project:
1. Donors who would like to make a grant for the project. We will provide donors with the details of every beneficiary with a photo update every three months.
2. Donors who can give as loan without interest. The amount will be repaid as per the agreement. We will provide details about the development of the project every three months.
3. Donors who can give as loan at a low interest rate. We will pay the interest as per the agreement yearly and the capital will be repaid as per agreement.
Please detail the resources that you need.
We need funds for the micro-credit project.
The amount we need is 100,000,000 INR. (Rupees Ten Crores)(U$1,793,303.80)
The amount will be distributed to the women beneficiaries as Rs.50,000. The loanee will repay it within 50 months with 12% interest per annum.