Development

NEDFi’s Micro Finance Initiatives

By admin ⋅ August 30, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

Social Action for Appropriate Transformation and Advancement in Rural Areas, abbreviated as SATRA, is a non-governmental organization, established in the year 2002. It is located in Sipajhar under Darrang Disrict. SATRA was started by a few social activists with hopes and aspirations to create self-employment for the rural people by developing and utilizing the resources available locally with scientific management. The Secretary of the Society, Nani Kumar Saikia is a dynamic man and has about 10 years of experience in micro-finance.

Initially the NGO received funds from Rashtriya Gramin Vikash Nidhi (RGVN). Then in the year 2005, North Eastern Development Finance Corporation Ltd. (NEDFi) provided a loan of Rs. 2.50 lakh for on-lending to 15 beneficiaries for undertaking various income generating activities under its micro finance programs. Seeing their performance, again in the year 2007, a second loan was given. This time the loan was bigger - Rs. 10.00 lakh. The loan was for on-lending to 500 beneficiaries for initiating various farm and non-farm based activities for their livelihood. All the 500 beneficiaries are women and out of them about 24 % are SC and ST. Although the NGO intends to cover the entire North Eastern region, initially under these projects, they have covered two blocks under Darrang and Odalguri district which has about 40% BPL population.

Kunjalata Devi is a member of Pragati SATRA SHG. Before taking loan from SATRA, she and her husband worked as laborers in paddy fields. Sometimes they did not have any work. As a result, they and their little daughter had to go hungry sometimes. Although Kunjalata was a young, energetic and hardworking woman, she was not able to start any venture due to lack of capital. When she came to know of SATRA, she approached them for a loan of Rs. 2000/- as working capital for making gamosas (Assamese traditional towels) as she already had a traditional loom. Seeing her enthusiasm, in February 2006, SATRA provided her with the loan from the fund received from NEDFi. Within six months Kunjalata repaid the entire loan along with interest. During this time NEDFi and RGVN had jointly financed a sericulture project to SATRA under which a weaving training program was existed. Kunjalata was one of the participants and after the completion of the training she again approached SATRA for a loan of Rs. 7000 for purchasing of a Jacquard machine. The total cost of the machine was Rs 12000. The balance amount of Rs. 5000 was to be met by the amount she had saved from selling gamosas and mekhela chadars (traditional Assamese dress) produced by her. In March 2007, SATRA provided her with the loan from the funds received from NEDFi for the second time. After installing the Jacquard machine, she is now able to produce a variety of improved handloom products. She is at present able to earn Rs. 1800/- to Rs. 2500 per month. Her husband’s income is separate. Before getting the loans from SATRA, her family income per month was Rs. 1000 only. Today, Kunjalata is very happy and thankful to SATRA.

By Olee Bora, NEDFi. More information about NEDFi can be found at www.nedfi.com