Self-employment or small-scale entrepreneurship can be a good solution to the problem of unemployment, and microcredit will come in very handy, especially during the pandemic when so many people have lost their jobs.
To find out more about microcredit, head over to our blog.
Read some success stories below.
One of our acquaintances hails from Bharatpur in Rajasthan. His farm income is not adequate to sustain his family. He worked as a home tutor and taught me Urdu. He was looking to augment his income and create some sort of passive income for himself. We came up with the solution of him buying an auto-rickshaw and renting it out on a daily basis. The auto-rickshaw cost Rs. 400,000. The dealer offered a finance scheme where he gave an interest-bearing loan of Rs. 250,000. We financed the down payment of Rs. 150,000 as an interest-free loan. Over time, he repaid the dealer’s loan as well as the down payment loan. He earns a monthly income of around Rs. 8,000 from giving the auto-rickshaw on rent.
In interactions with our domestic help, we realised that one way to spur self-employment would be to extend microcredit. Our maid’s husband had lost his job in a property management company and was looking to set up a fruits and vegetables stall. He needed a capital of about Rs. 25,000. He put in Rs. 10,000 and we put in the remaining Rs. 15,000. This enabled him to purchase the stall and to kickstart his business with working capital. His business picked up over a period of time, and he seems to have found a way to earn a living for his family.
Mowina, 33, lost her husband due to COVID-19. She lives with her old mother, two daughters and a son in Samaspur village in Gurgaon. Her husband had been the primary source of income for their family. We provided her financial assistance in buying a sewing machine set and setting up a sewing business. She started earning money doing something she loved and from the comforts of her home. Our aim is to help women become self-sufficient. We believe that investing in women’s economic and social empowerment will be a major step towards the betterment of society.