BESTSELLER FOUNDATION contributed to the establishment of Valar Aditi Micro Bank to help poor women access credit and smaller loans to buy farming equipment and start small-scale businesses that can improve their living conditions.
Crucial Access to loans
Without access to loans or credits to improve or scale up their farming or small businesses, the poorest of the poor are rarely able to break the vicious circle of poverty.
With backing from their local self-help groups the poor women are now able secure small loans that would be almost impossible to obtain without the micro bank. By organising themselves in self-help groups, they promt a collective liability that encourage steady repayments of loans.
In order to assist the establishment of the Micro Bank, BESTSELLER FOUNDATION bought 51% of the shares in 2014. Four major women's trusts (comprising of 2400 self-help groups) own the remaining 49% of the shares.
From savings groups to Micro Bank
The Micro Bank builds on 2400 of women's self-help groups established in 2005-2013 by for partners Sct. Joseph Development Trust. When the idea of a micro bank was born, the 130 self-help-groups counted only 2.000 women spread across 18 villages in Southern India.
Since then, the number of shareholders in the micro bank has risen till nearly 32500 - grouped in 2400 self-help groups.