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Tamil Nadu - India

Valar Aditi Social Finance Private Limited

A micro-finance initiative that helps poor women access loans in order for them to buy farming equipment or to start a small business






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Project
Valar Aditi Social Finance Private Limited
Location
Tamil Nadu India
Budget
N/A
Type
Equity & Shares
Partner
Valar Aditi Micro Bank
Period
Jan 2015 Ongoing

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. 

51% shareholding
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. 

KEY RESULTS - ongoing

  • Initiated process to professionalise the Microbank
  • Facilitated loans worth DKK 12,118,900 in 2014
  • Provided loans to 1,241 groups (8,005 borrowers)

KEY RESULTS - ongoing

  • Repayment rate on loans has been over 99%
  • Revenue amounted to DKK 1,296,270 in 2014
  • Net Profit after tax amounted to DKK 231,323 in 2014

Tamil Nadu - India

Literaly ' the Land of Tamils' is one of the 29 states of India. Its capital and largest city is Chennai. Tamil Nadu is the 11th largest state in India by area and the sixth most populous state. It hosts the second largest state economy in India with US$76 billion in GDP.

Its official language is Tamil - one of the longest surviving classical languages in the world. It is home to many natural resources, classical art, music and literature, Hindu temples, hill stations, beach resorts, pilgrimage sites and eight UNESCO World Heritage Sites (wikipedia)