Dear Friends,
I am sending you all a case study of visible change that we have experienced over last five month of microfinance experience.
We are raising funds from funding agencies. Currently every one is testing waters with us and giving us in small tranches. But we feel that individuals need to continuously support us financially. We need individuals like you to support us financially even in small amount like Rs 5000/10000/20000.
The amount will be returned after 12 months. Its totally based on trust. I got support from 40 people who believed in us and helped us to stand up. We are slowly slowly gathering pace.
Please visit www.bihardev. pbwiki.com and http://picasaweb.google.com/rchandra1231/ to know more. If you are convinced, then send mail to us to know about the process of sendig money.
BDT Case Study-Put All Eggs In One Basket!!!!!! !!!!!!!!! !
Subhash Das a 45 year old labourer turned egg seller resides just 10 kms away from the district headquarter of an Indian town.This is one of districts of state Bihar named Bhagalpur-- 400 kms west of Kolkata and 225 kms east of capital Patna.
Besides that, BHAGALPUR is where ANG PRADESH was situated in MAHABHARAT mythology and ruled by DANVIR KING KARNA. It is famous for its TASAR SILK work.
Mr. Subhash is now a person full of dreams in his small thatched hut in Belgachhi village of Gaura Chakki Panchayat in Nathnagar block of Bhagalpur district.
Being a person of Scheduled caste, he could not enjoy a social support system which could help him tap the potential of his existing business. Subhash uses to put his Thela (Hand Cart driven by vendors) in a nearby Haat with some eggs, Kerosene Stove and other utensils essential to serve Aamlet, bread Aamlet and boiled egg in this bone chilling cold. He used to earn a meager Rs.50/-(fifty only) per day to support a family of four members. His working capital need was further pushed to danger level by the drunker of the Haat who are habituated of enjoying Aamlet as Chakhna (eaten as snacks with wine) on credit. Though his credit money was paid but he was never sure when it will be received. He also never dared to ask these people to give his money even if it was badly needed to buy Eggs to run his shop.
Due to this deep trouble, he had started giving second thought to migrating to cities like Surat, Delhi, Mumbai etc with his wife Sulena Devi and two sons (elder one a drop out of class 8th and younger one studying in class 9th). Subhash never believed Ramvilash (a Bihar Development Trust’s field staff) who all of sudden started saying few days back that I will give you Rs.5000/-(five thousand only) loan without taking anything mortgage. Ramvilash went to his village and called upon a meeting of the villagers and told about the ‘Samvridhi Scheme’ of Bihar Development Trust (B.D.T.). Somehow a group of five women could be formed in the village Sulena Devi (wife of Subhash) being a member of the group. After one month of saving the group unanimously decided to make Sulena first loanee in the group.
After receiving the loan Subhash purchased egg of the whole amount to meet his weekly stock need. In the words of Subhash, “earlier I had to go to Bhagalpur daily to buy egg, which killed my time a lot and when I reached Haat with my hand cart, it was 3 p.m. of the day, the customers usually start returning to their homes at around 5 p.m. I used to loose my business. Now since I have a week stock I reach Haat at 12 p.m. and do business for full 5 hours.”
A first class A.C. railway traveler can not think that a five thousand rupee which ferries him just from Bhagalpur to Mumbai can not only change a business cycle but save a livelihood system.
The increment in this egg seller’s profit is more than 100% because of microfinance. Bulk buying gave him a saving of Rs.5/-(five only) per cartoon means a saving of Rs.25/-per day(as he needs five cartoon per day). His daily transportation cost of Rs.10/-(fair to and fro Bhagalpur to his village) is saved. Now extra time available to him gave him courage to take neighbor’s land on crop sharing basis, which opened up an extra avenue to earn money. He has planted Potato in the field which will add to his family income seasonally. His wife says,” More than adding to our income B.D.T. has brought self respect for my family, we used to take money @10% per month from moneylenders of the village and that too after lots of persuasion. The money was being given after deducting the first month installment and when failed to pay interest on time the abusive language brought our morale down before our children.”
Doing his hot selling in the Haat Subhash asks to B.D.T. workers ‘if I repay your five thousand on time will my wife be given ten thousand rupee to run a permanent shop in the Haat???????? ??’
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I am imagining if one million people support with their Rs 5000 amount, we can change the face of Bihar economically. It will set up a virtuous cycle of wealth creation at bottom of pyramid which we are targetting. Needs are well documented . The question is of reaching the bottom of pyramid and giving them access of financial products at micro level which we are used to. The cost is high but volume is too big that can be ignored by each one of us at our own peril. They need to move up economically and they are struggling and we just need to give a helping hand(thresh hold push). They will lift themselves up. We need not worry.
Regards
Ravi Chandra
Dr Ravi Chandra
Managing Trustee
Bihar Development Trust
9470017752
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