Community Mondays: Savings & Credit

Our new blogging challenge for your Daily Dose of Saath: six stories a week about our interns, clients, visitors and programmes. If you have a story that belongs on this page, please mail us at rdc@saath.org. 
On monday we feature succes-stories and case-studies from the community. This monday we share the experience of the Hussain family from Juhapura with the Saath Savings & Credit Co-operative Society Ltd.

Name of the client: Sabir Hussain
Age: 38
Area: Juhapura

Sabir Hussain and his wife Firoza Hussain with 3 children have been residing in Juhapura, Ahmedabad for the last 3 years. Both husband and wife stitch clothes in order to earn their living. A few years back, before they started using the loan service provided by the Saath cooperative, they earned an income of Rs. 8,000 – Rs. 12,000, which wasn’t enough to pay their employees, feed their children and satisfy their daily household needs. During financial crises they used to borrow money from their businessman for a fixed period of time, and returned him that money within the given time. This was very tedious for them, as it was very difficult to collect such a large amount of money within a small period of time.

Two years ago, one of their 12 employees told them about the loans provided by the Saath co-operative. They were surprised to know that a facility like that was available and they further enquired about it. They formed a group of 4 and started taking loans from the Cooperative.. His wife is the leader of the group. She collects instalments, interest, stamp duty and Rs. 100 compulsory savings from all the members of her group and gives it to the field officer on a particular fixed date. She said that she never had problems repaying the loans with interest and she hadn’t experienced any problems in her group about repaying the loans.

She twice took loans from the Cooperative and is very happy with this service. She took a loan of Rs. 5,000 in the 1st cycle and Rs. 10,000 in the 2nd cycle for the purpose of buying a new sewing machine with better technology and sold the old machine. With the use of 2 new machines, they can stitch larger number of clothes in a short period of time and hence, now they earn Rs. 20, 000 – Rs. 25, 000 per month. She says: “I am extremely benefitted by this loan service, provided by Saath Cooperative. It helped me to expand my business by buying two new sewing machines and this has improved my financial status by increasing my profits.”

Due to increase in their income, they now can save Rs. 300 to Rs. 500 a month, apart from the Rs. 100 compulsory savings.

This case-study was conducted by Shalini Pal.

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