| CREDIT
AND SAVINGS PROGRAMS
WATCH's
Credit and Savings Programs are among
its most successful ventures. When literacy
groups decide to study key words like
'credit' or 'savings' they are given several
activities to help them understand these
topics. After going through these activities,
many of the groups have started up their
own savings programs. They draw up their
own rules as to how much and how often
members should donate, etc., and manage
these affairs accordingly. Altogether,
65 women's groups have been able to save
a total of about RS. 0.75 Million. WATCH
has negotiated with these groups about
mobilizing their own funds for a credit
program. WATCH is also offering to consolidate
the saving groups if they wish, and provide
them with financial management training.
WATCH's
credit program has helped a number of
groups escape their debt traps, and others
carry out income generating activities
by supplying a small seed loan for a group.
The group then sets its own rules about
borrowing, interest rates, etc., and lends
out money to members and non-members.
People receiving loans use them for necessities
or for income generating activities. These
people then repay the loan, with the group
keeping the interest for itself. Once
their account is large enough, the group
can pay back the loan to WATCH and continue
lending to their members and others outside
of the group.
WATCH
has also created a revolving fund to provide
larger, but necessary, interest-free loans
to the women's groups. The loans are provided
according to the groups' needs and the
groups themselves decide how to allocate
the funds. There has never been a problem
to recover the loans, and often the groups
themselves recover the loan. To date more
than 3 million RS has been lent out, and
about half a million RS is in the revolving
loan fund.
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