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  project name ~ Microcredit loans

category ~ microcredit




  Project Name


Microcredit loans



Action in Disabilities India









Tamil Nadu

  Budget Approved


$ 2100


  Year Approved







  Chapter Coordinators


Vijay Srinivasan











Action in Disabilities India (AID India) has been running self-help micro-credit groups for the less privileged women of Sathankulam in the Tuticorin district in Tamil Nadu. The microcredit scheme, called Grama Vasantham is base on the highly successful Grameen bank model. The primary coordinator of the group Mr. Peter Raj has undergone training in running microcredit groups from the successful Grameen Bank in Bangladesh. The Grama Vasantham program was started three years ago and currently serves more than 3000 people in the Sathankulam area.





With the loans provided by Grama Vasantham the women are able to earn an additional Rs.50 every day. The Gandhinagar centers we are supporting have grown from 45 to 60 members in the last oneyear. They have 10 women who are trained and are in charge of the wholesale marketing. The total number of beneficiaries in Grama Vasantham has also grown from 1300 in June 2002 to 3300 in April 2003. Grama Vasantham program also boasts of a 100% repayment rate. Mr. Peter Raj (coordinator of Grama Vasantham) expects the program to become sustainable in another 2 years when the principal has reached Rs.1 crore (it is currently at Rs.430,000). Ideally the program is self-sustained only when it is able to meet the loan demands of the beneficiaries.





The project proposal requested seed capital for providing small loans to 45 women from the Gandhinagar village. The women would use the loans as initial investment to setup basket-weaving shops, providing income generation opportunities. The loan requested was Rs. 2000 each for 45 women (Rs. 90,000) and Rs. 10,000 towards training costs.



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