D-1839

   India - Adoni

Micro-Credit Project In India

$37,000

The purpose of this matching micro-credit grant is to provide micro-loans for dalit [untouchable] women in rural Andhra Pradesh, India to develop small businesses. These disenfranchised, poor women currently work in agriculture or in a cotton factory and earn approximately .80 cents US a day. Some women are single parents and must support children on a single meager salary. Many additionally beg for food.

The RC Nandyal [of Nandyal, Andhra Pradesh, INDIA] will be the host club and has agreed to provide $100.00 for the project. The project will be administered by BIRDS, an NGO with extensive experience operating revolving credit projects having loaned money to over 26,750 women in Andhra Pradesh with a return rate of 98%. The weekly collected payback from the borrowers will be deposited in a bank account in India established specifically for this project. There will be a total of 200 borrowers divided into 20 credit groups of 10 borrowers per credit group, each woman having a loan of $150.00. Borrowers will be selected by interview of poor women unable to borrow from conventional sources who have a business plan approved for and feasible for their business enterprise. Each credit group of 10 borrowers must: 1] live on the same street or in close proximity, 2] know each other, 3] not be related by family, 4] agree to cover the loan repayments of the other women in the group in the case of default. Once the business plan of the woman borrower has been accepted for the project, the 10 borrowers [credit group] will meet with the BIRDS micro-credit supervisors as a group on 4 separate weekly meetings to review the business plan and the agreements for managing the business. After successful completion of the program, women will be given the $150.00 US as a loan. Borrowers will be visited every week at the site of the business to check on the development of the business. Money will be collected weekly starting on the 2nd week. Each woman will owe a total of $171.00 US [$150.00 loan + 14% interest of $21.00=$171.00] which will be repaid at the rate of $3.42 US per weekly payment [$3.42 weekly x 50 weeks = $171.00]. Repayments will be deposited in the bank and used for future micro-credit loans.

Primary Host Partner in the Project Country

Club: Nandyal

District: 3160

Primary Contact: Valperla Paul Raja Rao

Email: paulrajv@yahoo.com

Check all projects from: [District 3160] [Nandyal Rotary Club] [Valperla Paul Raja Rao]

Primary International Partner Outside the Project Country

Club: Portland

District: 5100

Primary Contact: Dr. Susan Cooksey

Email: twonavycapts@yahoo.com

Check all projects from: [District 5100] [Portland Rotary Club] [Dr. Susan Cooksey]

Proposed Financing

Primary Host Sponsor Rotary Club/District

Rotary Club of Nandyal

$100

Primary International Sponsor Rotary Club/District

Rotary Club of Portland

$4,000

District 5100 DDF

$8,750

Additional Rotary Clubs/Districts

Additional Sponsor Club

$8,900

Amount requested from the Rotary Foundation

$15,250

Total

$37,000

Status and Progress Information

Dropped

This project has been dropped. This is probably due to the loss of contact with the Coordinating Club. Project listed for the 2010-11 Rotary Year.

I have volunteered w/ the BIRDS organization in India for 3 years and I am very confident in their ability to train and manage the Micro-credit.

<18-Jun-10> System Entry
Creation of project page.

<16-May-11> by Wbankspdx@yahoo.Com
Project cancelled.

<2-Jun-11> by Warren Banks
Project has been cancelled.

<16-Jun-11> by Warren Banks
The project has been cancelled