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Why Savings?
In 2004 Jeewa decided to become SHG member in IVDP. She found that most of her
neighbours who lived in and around her in Marandahalli Village seem to be getting better
off. She found that most of her neighbours were getting loans easily at a cheaper rate.
This made her decide to become a member of Kuringi Malar which was found in 2004.
The group had 14 members originally but one person died due to a dog bite.
Subsequently, they did not add any members. This group started with a savings of Rs.50
and increased the same to Rs.100 within a year and subsequently Rs.200 and presently
(2014) they save Rs.300 per head per month. In this group, they use the loans basically
for expanding their business, educational purposes or house repair. Most of the members
in this group had some kind of small business like making candles, baskets or a petty
shop.
Why Savings?
The interest rate that they started charging was 24%. In the last 10 years, the group has
discussed and implemented two important issues. Firstly, by consensus they decided to
increase the savings amount from Rs.50 to Rs.300 per head per month. Secondly, they
decided not to reduce the interest rate from below 24% because they felt that the amount
of money that will accrue to them on division will be reduced. They have got used to
getting between 7,000 to 10,000 rupees every two years due to interest income. Hence,
they feel that reducing the interest rate will reduce their interest income. To them, more
than the loans which they get from their savings, the interest income is important. They
have been giving loans of around Rs.50,000 per member since the last one year.