Raju is a Muslim boy of about 30 years of age, although he looks older
than his age. Everyday the boys in the club noticed that Raju is out in
the street early in the morning and then almost the last person to leave
– with his rickshaw. It is not his rickshaw but the local Mahajan's to
whom he has to pay Rs 20 a day. The rickshaw is very old and rickety
but there is no way out. Then things changed one day. The club
received a loan from a Financial Institution to help people like Raju.
Raju was told that if he could give the club Rs 20 everyday it could
buy a new rickshaw for him. Moreover, after the total amount was
repaid the rickshaw would be his. Raju jumped at the idea. He did not
care to know that interest charged would be 18% per annum.
With new rickshaw Raju's earnings increased. Plus, he began to save
much more to repay the loan to the club. In less than a year he became
a proud owner of a rickshaw.
He did not stop there. Next he requested the club to give him another
rickshaw. Surprised the secretary asked him why he would need
another rickshaw. He said that all his life he was somebody else's
employee. Now he would like to be an employer. With his repayment
record hardly anybody, except the commercial banks in Assam, could
refuse him. He was given another rickshaw. The very next year he took
a loan from the dame club, this time for a auto van. Last heard, he was
planning to buy a mini truck. All this within a span of three years. And
with the help of micro credit.
The above story is of a person from Sipajhar and the club is Sipajhar
Diamond club, established in 1933. NEDFi has been assisting the club.
There are lots of local clubs like these all over the NE region. The
people managing these clubs need to be guided and then funded to this
sort of work. These are the pillars on which the development of the
society can rest. So when do we start?
- Contributed by Amiya Sharma, DGM (Economist), NEDFi, Guwahati, India
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