Implementation of MICRO-CREDIT in a rural area of West Bengal (Source: TOI)

Sixty-five-year-old Ranubala laughed like a child when she stepped on to the terrace of her new house. Her daughter Chhaya Ghati, 30, could not control her tears. 'I can't believe we have a brick house with a terrace,' she said, tears of joy rolling down her cheeks.
Since birth, a rickety mud hut had been her home. Her father ran a tiny shop selling biscuits and toffees. Mother Ranubala toiled all day to dehusk rice and sell it to feed four daughters and a son. The Ghatis were one of those below-povertyline families of Bangalpur at Bagnan, Howrah.
All that is history. The penniless graduate is now manager at a bank run by Bagnan (I) Mahila Bikash Cooperative Credit Society. Chhaya joined a self-help group (SHG) and now earns Rs 3,517 a month. She helped her father repair his run-down shop with a bank loan. And, she built the pucca house with a terrace. Her sister Maya, too, works at the Society's marketing outlet.
Microcredit is the new buzz word after Muhammad Yunus of Bangladesh and his Grameen Bank were awarded the Nobel Peace Prize for 2006. Away from the spotlight, in Bagnan Block 1, too, microcredit has helped unshackle the women in 55 villages. Chhaya is one of hundreds of women in Bagnan Block 1, around 65 km from Kolkata, who have thus transformed their lives.
The Bagnan (I) Mahila Bikash Cooperative Credit Society is modelled on Prof Yunus' vision. 'But, with a difference. Grameen Bank follows a
largely financial approach while here the stress is on empowerment of women,' said Tarun Debnath, project manager of Credit and Savings for Household Enterprises (CASHE) launched in West Bengal by CARE-India in 2000.
According to state principal secretary (panchayat & rural development) M N Roy, 'We have chosen the Bagnan (I) society as a model. We will replicate it in 15 blocks in seven districts.' Spearheading this quiet revolution is 50-something Madhuri, helped by husband Gopal Ghosh. With help from the state government and NGO CARE-West Bengal, the Society now boasts of 12,262 members.
Since May 2001, CARE-West Bengal has helped in capacity building programmes for field workers and banking personnel. Through formation of SHGs and offering micro-credit, even to those below the poverty line, the society is boosting income and empowering faceless village women.
The green sari SHG members wear inspires respect, claimed field supervisor Tripti Ghati. 'Nobody disturbs us. The men do not oppose us even if they don't come out in support,' she said.
A case in point is Begum Baharan of Adra village in Bagnan Block 1. This mother of one daughter and three sons struggled to live before she joined Madhuri in 1997. She also had to deal with husband Sohrab Ali, who was a philanderer and beat her regularly. A tailor, Ali disappeared for four years leaving Begum to raise the children.
In 1995, the Development of Women and Child in Rural Areas (DWCRA) scheme was launched and Madhuri went to villages looking for women to form groups. Egged on by other village girls, Begum joined DWCRA Samanwaya Samity, the first social organisation that pooled their savings and undertook collective activities.
'Madhuridi took me to Ghoraghata where I learnt zari work and also how to make papad and bori. Post-training, Didi urged me to begin working. I had never stepped out of my village. I was scared,' recounted Begum.
One day, her sister-in-law saw her zari work and wanted to buy it. After Begum sold her work, she found confidence. Gradually, work increased and she created a small corpus. Then, she ventured to borrow from the society's bank. 'I took Rs 1,000 for raw materials the first time,' she said. In 2004, she borrowed Rs 10,000. Now, she earns around Rs 5,000 a month and repays loan on time. A proud Begum said, 'I have 20 girls working with me. Each of them earns Rs 700-800.' At home, too, she has scripted a success story.
One day, a few SHG members led by Namita Dolui went to Begum's house and cornered her husband. When explaining did not work, Begum launched an offensive. 'It took me five years to cure him,' she said. Now, Begum earns while Ali cooks and carries raw material for her.
Such fight-to-win stories abound among members. The organisation has pooled savings of Rs 30,143,847 entirely from women in 55 villages in 10 gram panchayats.
MUMBAI MIRROR DEMYSTIFYING MICROFINANCE
Microfinance is one of the most effective and flexible strategies in the fight against poverty. It comprises extending small loans to individuals, usually women, to establish or expand a small, self-sustaining business
For example, a woman may borrow to buy chickens so she can sell eggs. As the chickens multiply, she will have more eggs to sell. Soon she can sell the chicks. Each expansion pulls her further away from poverty
Usually, there are multiple support systems in the chain. Microfinance institutions offer business advice and counselling. Clients provide peer support to each other through solidarity circles. If a client falls ill, her circle helps with her business until she is well. If a client gets discouraged, the support group pulls her through. This contributes to the extremely high repayment rate of loans of microfinance entrepreneurs
An equally important aspect is recycling of funds. As loans are repaid in six months to a year, they are reloaned. This continual reinvestment multiplies the impact of each rupee loaned
Microfinance has a positive impact far beyond the individual client. Most loans go to women because studies show they are more likely to reinvest the earnings in the business and in their families
As families cross the poverty line and micro-businesses expand, their communities benefit. Jobs are created, knowledge is shared, civic participation increases, and women recognised as as members of their families