Auroville Village Action Group (AVAG) is working with 140 Women’s Self Help Groups (WSHG) comprising of around 2350 Women. These groups have been formed under the umbrella of Udhayam Women Centre (UWC). Since the past ten years, AVAG focuses on supporting the WSHG’s in the management of their savings and credit activities.

Each WSHG has 12 to 20 members, including one animator and two representatives. When a group gets affiliation from AVAG, it is asked to join the federation. AVAG organises seminars, meetings and conducts training for the WSHGs. AVAG also makes sure information about the new schemes and the procedures to apply reach the groups and ensures the link with banks and the Government.

Goal:
The central aim of the micro finance project is:

- to help the women become independent of money lenders
- to inculcate the habit of savings among the women
- to help the members of the WSHGs to get recognition from the family and the society at large
- to enlarge livelihood possibilities of the WSHG members

Loans:
Internal lending:
After 3 months of savings, individuals can take loans from the savings of the club. SHG members decide who is eligible to receive a loan in their monthly meeting.

Loans from the outside:
After six months of savings, SHGs become eligible to take loans from external sources. In all cases loans are given in the name of the club, and can then be passed on to the individual members.

- Udhayam loans: AVAG has given a grant to the UWC to be used as a revolving fund. The clubs apply to the UWC and the representatives of the UWC decide depending upon the regularity in repayment of the loans.

- AVAG loans: AVAG sanctions the loan only if the Women Centre approves the loan amount. 50% of the AVAG loans are given for income generation activities.

- Educational loans: AVAG loans in this specific sector are given to the clubs to encourage the children of the members, particularly girls, to go for higher studies and vocational training.

Apart from these loans, WSHGs are also eligible to benefit from a number of government schemes including revolving fund schemes, housing schemes and activity lending schemes. WSHGs can also avail of direct bank loans.

Outcomes:
- Women are able to avail loans in times of needs and crisis.
- Women get into the habit of saving and repaying loans regularly.
- Women as a group are able to take decisions related to finance which was denied to them traditionally.
- It helps them to be free from the money lenders.
- Women develop skills in leadership, accounting, team building, social analysis etc.
- Women feel supported and start to help each other.
- A greater number of children (particularly girls) from the SHG members’ families attend school and go for
  higher education.
- Housing conditions of the women and their families have improved.
- Women start income generating activities.

© 2007 Auroville Coastal Development Centre