The microfinance system within self-help groups is meant to help the poorest and marginalised section of society. There are around 700 such groups run by the Ahmedabad Municipal Corporation (AMC), and they have recorded a 100% recovery of loans taken in the past two years.
Parul Parmar, a resident of Khodiarnagar in Ahmedabad, had taken a loan Rs 10,000 from Devi Sakhi Mandal, where she is a member. Parmar is paying an interest of only 4%, as opposed to the high interests she paid money lenders in the past. With this money, she has built a pucca house, and she is repaying her loan to the group in installments.
The idea behind the joint liability group is that its members (10) are the security for each other since they do not have assets to pledge.
"I have paid three installments. And this is such a relief. I don't have to worry as I am not paying a high interest of 20% or 25%. Moreover, after joining this group, I have got a job as a house keeping staff," said Parmar, beaming with joy.
Bhagwati Rathod, of Sahiyar Sakhi Mandal used to mortgage her gold jewellery for money, but that is a thing of the past. "After joining this group, I don't have to mortgage anything. This is the biggest relief. And in addition to that, I have got a job, which helps me save money every month. Joining this group is a life-changing experience," said Rathod.
Kanta Rathod a resident of Behrampura, said: "This is very organized, much better than money lenders. We have to repay the money in any number of installments decided by us. That is the biggest relief. I repaid my loan in 8 installments."
Generally, the group members have been repaying their loans within a year. "ICICI bank has the most of number of accounts from our groups. Our Sakhi groups have taken loan in two financial years – 2016-17 and 2017-18. The groups have taken a loan Rs 9,5 crore, and it has been recovered 100%."
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Vijay-Rupani")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}