GRAMA VASANTHAM which means “Village Prosperity” is the name of our micro credit program. AID INDIA has implemented this program to empower impoverished women and people with disabilities. With Grama Vasantham over 7000 women and over 300 disabled people succeeded in improving their lives!

Background of the program: micro-credit for a brighter and sustainable future

Micro credit programs are successfully implemented in many countries. The principles and procedures behind micro-credit are simple, but the system is widely effective. Small business loans are provided to people who are not able to get loans from other institutions because they have no credit history and the interest rates are enormous (regular interest rates in Tamil Nadu on loans range from 36% to 120% from banks and private money lenders). Small business loans are provided to groups of people (Self Help Groups) who trust each other and are together responsible for the loan. By starting up small businesses with loans people are in charge of their own future independent of the goodwill of others. Micro credit loans allow people the opportunity and dignity to create a sustainable income for themselves.  Besides that, loans prepare the borrower also for the commercial world should their enterprise get big enough for the formal business sector. The increase in income has a positive affect on the whole family, or even the community. When the loan is repaid in full, people can look forward to a better overall and financial future, while the returned funds can now provide the same opportunity and benefits to another family. AID INDIA’s micro credit system is based on the principles of the famous Grameen Bank (Bangladesh) micro credit system.  We modified the micro credit program taking into account the situations and laws of Tamil Nadu in the implementation of this program.

How we work
To obtain a small business loan, women or disabled people form a Self Help Group with neighbors and friends whom they trust within their village. The number of women organized in a Self Help Group is minimum 10 and maximum 20. For the Self Help Groups of people with disabilities the minimum is 5 and the maximum is 10 members. Self Help Groups meet regularly: weekly or once every two weeks. Within the groups is decided what kind of businesses will be started with the loan (depending on the skills of the members). A bank account in the name of the group is opened and two elected group members are responsible for the operation of the account. They make weekly or monthly savings equally and regularly to pay off the loan eventually. All decisions are taken unanimously. Some members also save extra money which makes internal lending among the group members possible. AID INDIA gives training to the group members in book keeping, accounting, savings, credits, meeting modalities, legalities, purchasing, production and marketing. The groups have 99% repayment rates (there are exceptions to this rule, for example during natural calamities like the Tsunami when repayment was simply impossible). Besides providing loans to the Self Help Groups and training them in business and skill manners we also benefit the Self Help Groups with health programs, literacy- and leadership training. In this manner, AID INDIA helps to ensure the overall (financial, health, and educational) viability of their lives.

Impact of the program

With the help of the Grama Vasantham program, local people establish sustainable income generation for themselves and their families. It makes it possible for women and disabled people to start up small businesses. These give the people financial independence, self esteem and a better future for the whole family. Aside from enabling people to be financially self-sufficient the micro credit program serves many other purposes:

1. To give awareness to rural women and people with disabilities on social issues like violence, and discrimination against them.
2. To make rural women and people with special needs aware of their legal rights.
3. To make them aware on family health, child care and maternal care.
4. To offer them training in trade and markets.
5. To offer their basic education by implementing the New Linguistic program.

Visible results of the Grama Vasantham program are:

1. Loans provide families with regular and sustainable incomes.
2. People can afford three meals a day.
3. Child labor is decreasing. Women send their children to school up to the 8th standard.
4. The Literacy rate is increasing.
5. People do not borrow money from private lenders who charge high interest rates (from 36 to 120%).
6. The social status of women is improving; they gained more economic independency, their influence in the household increased and the attitude of the husbands and the overall community towards women improved.
7. Disabled people gain self-esteem and forget their disability in mingling with other people.
8. Better integration in families, communities and villages.
9. Growing awareness on several subjects like rights, education, health, nutrition.
10. People are positive towards the future.

Success story 1
Charlin

Success story 2
Saraswathi

Success story 3
Darmaraj