Micro Credit Project

Project Overview
When United Nations declared 2005 as the year of Micro-credit, it became clear to the rest of the world that the model of micro-credit is viable and essential in eradicating poverty at the grass roots level. Micro-credit provisions micro (small) loans to individuals who need it to improve their living conditions, but who are unable to find a loan through the channels of a mainstream commercial bank.
The premise of the micro-credit scheme is humanity itself. Every individual has an enterprising capacity – a spirit within them that strives to improve their lives. But more often that not, the surroundings, such as the systematic unavailability of getting loans from commercial banks or the exorbitant cost of acquiring such a loan, dampen that human capacity. What the world must not forget is that poverty stricken communities and individuals are also productive and enterprising, and given the right tools they are capable of improving their and their families’ lives.
New Life, through its community owned association structures known as Affinity Association of Self Help Groups (AASHG), plays an active role in promoting and providing micro-credit. The AASHGs are community based groups comprised of women leaders that manage the credit needs of the individuals within that community. Community based affinity associations are one of the most effective way in channeling the loans to the borrowers. The AASHGs are responsible for gathering and validating the credit needs of the borrowers, and then New Life through its partner organization seeks to fulfill these Credit needs. You can read more about our principles and policies here (New Life URL for the MicroCredit-Policy page).
New Life works with “Rang De”, an organization that connects borrowers with lenders. Lenders are individuals like you, from all walks of life, who don the role of a social investor. We encourage you to read more about “Rang De” here: (link: http://rangde.org/rangde.htm).
Policy
New Life has a Credit Team dedicated to the micro-credit project. The following principles are strictly adhered to while practicing micro-credit:
(a) Periodic statements: The Credit Team shall distribute comprehensive member statements disclosing loan and savings balances, rates, fees and finance charges on at least a quarterly basis.
(b) Honest and non-deceptive promotions: All marketing and advertising strategies while practicing microfinance shall contain honest and relevant information to help members make informed decisions.
(c) Fair credit practices: The Credit Team shall provide members with accurate, comparable, transparent and complete information about the total cost of loans, including fees and commissions as required under applicable law of the country.(d) Dignified collection practices: The Credit Team may exercise persistent collection practices as needed, but shall not harass nor physically or verbally abuse members in the process.
(e) Members' consent to share information: The Credit Team shall provide members with the option of not having their personal information shared with third parties for the purpose of selling members products or services.
(f) Dispute resolution services: The Credit Team shall provide members with options to settle disputes with the credit union to augment options offered through the legal system.
(g) Provide education about thrift and wise use of credit: The Credit Team shall educate and provide members with tools describing how to accumulate wealth and use credit wisely.
(h) Fair and forthright conversions: Credit Team seeking to demutualize must have at least 30% of members directly vote on the issue, with 75% voting in favor of demutualization.

Please do not hesitate to contact us (link: http://www.newlifemfi.org/contact.php) if you have any questions.
Invest Now
Remember, as small as a Rupees 1000 investment can make a difference in someone’s life. Social investors receive the sum invested with an interest of 3.5% per annum at the end of the loan tenure. Your social investment will help you connect with borrowers of AASHGs. Making a social investment on AASHGs through “Rang De” (link: http://rangde.org) is simple and secure. You can make social investments using a payment option that you find convenient. “Rang De” now accept payments via credit or debit cards, online transfers and cheques. You can indicate your payment option on “Rang De” Smart Pay page and you will be guided through the transaction depending on your choice of payment. Click here (link: http://rangde.org/whyinvest.htm) to invest in “Rang De”.
Please do not hesitate to contact us (link: http://www.newlifemfi.org/contact.php) if you have any questions.

Success Stories
Manimaran
Manimaran, a flower merchant, has good knowledge on the flowers business and has the marketing skills to sell it. His house is in proximity to the local temple, and Manimaran has a good market there. He sells jasmine, rose and other flowers which he buys from the neighbor villages. In addition, Manimaran has previous experience in getting loans and he has successfully re-paid all the loans that he has taken. Manimaran hence plays the role of a middleman; ensuring flowers from the gardens of growers reach the marketplace. He sources the blooms directly from the growers and supplies it to the local market. To meet the demand, Manimaran needed loan to increase his flower sources.
Manimaran received a micro-credit loan, and he has taken full advantage of it. He has tied up deals with two more flower growers, thanks to the contacts built up over a period of time. “My earnings have improved,” says the optimistic Maniraman, “but I need to do even better to improve my family’s condition”.

Maniraman, has decided that saving for a rainy day must start now. and has started a recurring deposit at the bank. . No crisis is big enough to make him miss the monthly Rs.300 recurring deposit at the bank.


Anbalagan
Anbalagan is into the rice vending business after his father. He lives with his mother, who is a coolie and earns daily wages. Anbalagan buys rice from the whole sale market and sells it at the retail market directly to the customers. Anbalagan needed loan to expand his business and reach out to more customers since he sells only rice and nothing else.

Anbalagan supplies rice to customers that need very large quantities, during wedding celebrations and other social events. The loan has helped him to make a large capital investment. He is uncompromising on the quality of rice and strives to maintain a reasonable price. This has helped him to survive in this highly competitive market.
Anbalagan believes that his mother’s unconditional support is partly the reason for his success. “Apart from that, it is my hard work and the ‘I can’ attitude that has helped me.” he says. He eventually wants to set up a wholesale shop for premium rice.

Kumaravel
Kumaravel hails from Tiruchirapalli and deals in banana leaves (the eco-friendly disposable plate/wrap). Kumaravel is doing the business of banana leaves for more than 5 years and has a good knowledge on this particular business. Trichirappalli is biologically very well suited to grow banana and it has huge market for banana leaves. Kumaravel procures the leaves from his place and supplies to different function through out the city.
Kumaravel needed a loan to boost his banana leaves supply. With the help of the loan, he has already given an advance to the owner of a four acre banana plantation, for its leaves. He has also utilized his loan to advance payments to the owners of three more banana plantations. This has helped him to substantially boost his income and earn the respect of his associates.

Although this business is fraught with risks (especially in the rainy season), Kumaravel is keen to broaden his reach to other areas of Trichy.


Swami Nathan
Swami Nathan was a coolie for daily wages. He is now planning to have cycle shop and hire cycles and do repairing and servicing of cycles. Swami Nathan has skilled himself in repairing cycles since he worked in a cycle shop for few months and he is now interested to have his own cycle shop in his village. He is confident that he will make more money to take care of his family. Swami Nathan needed a loan to buy new cycles for his shop.

Swami Nathan hails from a remote village that has no public transport facilities. Walking is the only way to reach the town, unless one is fortunate enough to own a bicycle. This gave Swami Nathan the idea to buy two bicycles and rent them out. He knew that he had made the right decision.

He wasted no time in securing a loan and purchased five additional bicycles. Now, you can spot these bicycles all over the village or in the town-anywhere but parked at his house. He earns an additional Rs.75 per day and it has also helped him redo his backyard.

“Mine is the only such shop in the village.” says Saminathan proudly, “What an idea-huh?” We couldn’t agree with him more.

Raja

Raja has been involved in selling of vegetables for the past 3 years. He gets the vegetables directly from the farmers, and then sell it to the direct market for the consumers. There is always a demand for vegetables. Now he is planning to expand his business with more farmers. He has already taken loans and re-paid it successfully.

Raja completed his twelfth grade and took charge of the tiny general store run by his parents. He knew that he had to work smarter, and quickly identified the problem areas. He acquired a loan and used it to install a pay phone and get additional supplies for the shop. He was also careful to keep a part of it as working capital, since most of his patrons needed credit facilities.

Today Raja’s parents are proud of their son. The shop is doing rather well and the pay phone brings in additional revenue. “I get more respect from my friends and relatives now.” says a beaming Raja, “This is our only source of income, and I am able to take care of my parents.” Raja is all set to expand further, and plans to include vegetables and some other pricey articles in his store .