Ashwarya Livelihood Revolving Fund

Ashwarya Livelihood Revolving Fund

Even though there are many schemes and programmes to provide micro-finance in India through banks, the most marginalised, homeless, pavement dwellers, physically challenged, widows and single mothers living in slums and transgender subsisting on begging remain excluded from these schemes. These persons are considered non-bankable as they do not possess proper and complete residential address and other identification documents such as ration cards or voters IDs required as per the reserve bank of India norms. This results in poorest of the poor remaining outside the ambit of welfare entitlements. These persons experienced greatest hardship during COVID Epidemic. At that time a scheme was jointly evolved called ‘Ashwarya Livelihood Revolving Fund’ by Saraswathi Trust and EDIT in the year 2022. The objective was to reach these individuals by providing them interest free loans to start micro-level economic activities to sustain themselves. It required first opening bank account in Equitas bank with minimum documentation. They were also handheld in setting up the micro-enterprises as well as given skill training if required. In case they repaid 70% of the loan the remaining 30% percent was waved to encourage them towards sustainability. Both Parties based on mutual trust have collaborated since year 2022 and jointly sought the most marginalised and brought them into credit fold. Now as a requirement for receiving the Rotary Global Fund and increase the reach of programme to a greater number of beneficiaries this relationship is being formalised by way of entering into an MOU.

As mentioned above the fund was started to help most marginalised women during COVID 19 Pandemic. Since then the fund has received a lot of positive outcomes which are shared below:

• Number of Non-bankable beneficiaries Identified In all 187 beneficiaries were identified and granted loans
• Type of non-bankable beneficiaries assisted
  • Homeless pavement dwellers single mothers and widows - 75
  • Transgender - 95
  • Physically challenged - 17
• Number of beneficiaries repaid the loan fully All 148 beneficiaries have completed their loan cycle and repaid the loan fully.
• Number of Defaulters There have been no defaulters since the commencement of the scheme.
• Number of beneficiary received handholding All the beneficiaries were given orientation, awareness and handheld.
• Number of of beneficiaries provided Skill Training Out of 187 beneficiaries identified 165 opted for skill training and they were provided skill training relevant to their livelihood projects.
• Number of beneficiaries mainstreamed into regular banking system After completing their loan cycle and developing a credit history, 58 beneficiaries have opted for expanding their business. They have been mainstreamed into regular banking system to obtain regular micro-finance loans from banks.

POSITIVE OUTCOMES

1. Reaching the most marginalised non-bankable beneficiaries so far excluded from credit and banking system.
2. Providing interest free loans to reduce the debt burden on new micro-entrepreneurs.
3. Providing back ended subsidy to encourage enthusiasm and sustainability.
4. Developing a credit history for them and making them bankable for the sustainability and business expansion.
5. Finding no defaulters due to handholding.
6. Finding their children in schools and colleges.
7. Observing them change into healthy, aware women with tremendous confidence and improved quality of life.

WHY EXPANSION

After observing such positive outcomes, Saraswathi Trust feels that with bigger funding more beneficiaries could be covered. So Far programme is mainly limited to widows and single mothers, physically challenged and transgender. The Saraswathi Trust and EDIT has observed that there are other women who may have husband who are sick and not able to work, have handicapped children, or be facing other financial challenges and are non-bankable for various other reasons. In expanded programme it would be possible to include them and assist them in improving there livelihood and quality of life.

CONCLUSION

Based on above facts, even though Ashwarya Livelihood Revolving Fund is a small initiative, it is reckoned as one of the best credit initiatives in India for following reasons.

1. It is the only known Interest Free Loan initiative in India.
2. It is seeking to help most marginalised, non-bankable, ultra-poor.
3. It is running successfully with no defaulters .
4. It is a wholesome programme and is supplemented by proving micro- housing by EDIT. So far 6538 homeless families have been shifted from pavements to micro-housing.
5. It is supplemented with Child Education support by way of Educational scholarships to their children by Saraswathi Trust. So far over 3059 students have been given educational scholarships to prevent drop outs due to financial crunch from a segment of society who never went to schools. Today many of them are studying in colleges and the institutions of higher learning.

The programme has made tremendous positive changes in the lives of beneficiaries and this programme needs to be supported. The Rotarians in India have been collaborating with various activities of Saraswathi Trust as well as EDIT and are fully aware of positive impact made. We are pleased to report that for initiating the Ashwarya Livelihood Fund the first donation of 5 lakhs was made by Rotarian Basker.