- Self Help Group (SHG) & Microcredit
Woman's Self Help Groups:
LDLM Microcredit Self Help Groups Programs are designed in building personal and economic viabilities and leadership skills among rural poor women and farmers, eradicating their unholy g reliance on scrupulous moneylenders who virtually threatened their basic existence & livelihood deepening their miseries across all spheres of life.
The most unique thing about the Micro Credit program of LDLM is that the model of linking SHG Groups to the Service Area Banks is a model rarely found in India to day where most NGOs are serving as the Micro Banker lending directly to the SHGs without the need for the service area banks in the rural sector. The Mission believes its role to be a catalyst between the poor women of the villages and the service areas banks so that the vicious demonism of the money lenders are rooted out of their systems and self belief & pride are instilled to transforms their rural economy for overall betterment.
Making them educated through continuous process of self awakening, and self help, Mission plays the role of a facilitator among these vulnerable sections of underprivileged people belonging to different communities and connect them to the available resources that can change their life for the better.
800 Women’s SHGs are bringing poor rural women from tradition bound isolation in their homes into economic participation and into larger roles of village leadership fostering a sense of pride and self – independence among this section of people.
This process works on Fully Democratic fulcrum with Groups elect their own leaders and make their decisions on own loans, advances and borrowings purely on consensus.
Regular Savings: SHG members make monthly contributions to create a monthly corpus, which is then used to extend soft loans to members. Even if the monthly savings is small, the mandatory contribution strengthens the savings habit, along with a critical sense of capacity and ownership in each member.
Micro-Credit Loans: The group discusses and decides by consensus what loans to make, to whom, in what amounts, for what purposes & projects. Borrowing members repay their loan with interest, increasing the group corpus for making other loans. As groups demonstrate their reliability, Service area Banks to which each of these SHGs are linked, begin extending credit to the SHG, which disburses funds according to the decisions of the group.
Social Transformation: Women reinforce one another’s sense of personal capacity in problem solving pertaining to their personal, family, or village level issues. LDLM has been able to reinforce a sense of fellow feelings, team spirit & cohesiveness among the cross section of this community working as a close knit unit in handling various types of issues & problems which may arise, like dowry exploitation, social injustice ,exploitations and local emergencies.
Total Women’s SHG Savings of Rs. 42,98,650, (4.3 Million Indian Rupees). Literacy : The uniqueness of Mission Adult Literacy Program is that Literate SHG members provide literacy training for non-literate members.
Record Keeping and Book keeping: Trainings are imparted to the group member about the methodology of Systemic way of maintaining of books of account by and internal lending.
Transparency : Utmost importance is given to the transparency of the monetary transactions and also overall management of the groups which is continually supervised by the trained workers of the Mission so that no group member ever suffers from any kind of abuse of power by any group leader.
SHG Fully Repays Large Microcredit Loan for Fish Culture On the 29th of December, 2008 -
Khariahat village SHG President, Mallika Mahato Khariahat, fully repaid the Rs. 2,50,000 loan (equivalent to approximately $5,000 USD) which the SHG had taken from the bank on 22 Jan, 2008 for fish culture. All 11 members of one SHG participated in the project, which was so successful that they have now applied for a fresh 4 lakh loan (equivalent to approximately $8,000 USD) to expand their income generating projects.
LDLM is the pioneer in the state of West Bengal in forming Farmers Clubs and initiated 11 Farmer's clubs which is a record number in West Bengal. Just as SHG groups are predominantly formed with women members of the community, Farmer's clubs are essentially for the male members, which other than including the farmers and artisans even the teachers in the schools are also included in this program. Farmer's clubs are essentially the platform through which all the modern technology about organic farming, and also improved methods of cultivation and animal husbandry are introduced to the farmers through workshops and seminars. The farmers are continuously educated on eco-friendly farming methods and elimination of the use of pesticides and chemicals.
Ground Breaking New Method of Paddy Cultivation:
In a Farmers Club Seminar held in August 2008 at Sandeshkhali 1 block, Boyermari, an innovative farming tool was introduced and the Mission gifted the Seed Drum machine to Sri Pralad Pradhan, a member. Training was also imparted to the farmers. They were also introduced to new methods of Organic Farming. The Seed Drum machine sows the fresh germinated Vijay-2 seed and the yeild almost jumps to 4 times than the usual production through age-old process. Where the normal process yields 6 to 8 bags of grains, the seed drum process produces 18 to 20 bags (each bag contains 60 kgs of grains). It was a great boon to the village farmers looking for newer technologies for increased production thus making them economically enabled & progress.