Women are credit worthy, responsible users of
credit. They can play a significant role in consumption
smoothening and productive activities within the household.
Very poor members are prompt in repayment of loans.
Developing grassroot level organisations utilising
the social capital brings down the transaction costs
and enhances the efficiency.
Creation of systems and good practices are important.
Members learn to respect the rules and systems if
they are strictly followed.
One loan at a time is not sufficient. For example,
if a housing loan is given it is necessary to give
a production loan along with it, so that enough income
is generated to repay the loans. Many times consumption
and production requirements have to be financed at
the same time.
Enhancing the size of loans should be gradually
done and equal opportunities should be afforded to
all the members. Groups are to be encouraged to link
loan availability to level of savings of individual
members.
A network of peer groups(federation) can act
as a positive influence. When a group is pulled up
for errant behaviour in a federation meeting, others
learn to avoid such behaviour. Visit to the erring
group/ member by other groups is an effective means
of peer pressure.
Economic advancement doesn't necessarily lead
to overall empowerment. Access to a few loans doesn't
change the position of women. Other social and political
activities need to be built in for overall improvement
of women. Fostering their leadership abilities, building
their awareness and encouraging them in decision making
go a long way in empowering women.
Commitment of the NGO and its confidence in people
are key ingredients in building social capital.
Linkage of micro credit with other developmental
programmes makes both credit and development programme
meaningful. .
