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My name is Shanti and I live in 15 kms outside Varanasi. I
have a small family with 3 children - Ruby who is 8, Rahul who is 7, and Rishu
who is 1.5 years of age. My husband Kisna, is a Rickshaw puller, and I work in
the neighborhood cleaning houses. Our
total household income is around Rs. 6,000 per month as we struggle to make our
ends meet. Six months ago a lovely
madam, named Rita Madam came from an NGO and told us about the importance of
saving - little by little, and sooner
than later. Rita Madam gave us other useful advice about what savings
products exist for low-income families like ours, who do not have easy access
to banks in the area; now I am finally on my way to managing my money better.
Nearly 6 months ago, I used to feel overwhelmed when trying
to save because there was no secure place to save at home as my husband would
dip in the piggy bank I had at home, my relatives nearby would ask for the
money I saved at home, and whatever was left over got spent on things the kids
want or things I like such as ornaments, festivals, beauty supplies. I tried to
save a little everyday though, may be Rs. 5 - Rs. 10 a day, but no Bank was
willing to take my small deposits. I
also needed to be able to withdraw these savings for larger household expenses
- sometimes for emergencies, sometimes for weddings, festivals and sometimes
for investing in the rickshaw or home repairs.
With little savings at home, and limited access to banks, we
had to pawn our bicycle for Rs. 500 for Rahul’s medical expenses a few months
ago. We did not want to go to the local Sahukar (moneylender) because he
charges a very high interest rate - nearly Rs. 40 for every Rs. 100 borrowed.
But the Rita Madam showed us helpful ways to save, and we
are more disciplined about savings now.
She told Kisna to join the Rickshaw ROSCA (Rotating Savings and Credit
Association) that already had 13 members. In this ROSCA, each member saves Rs. 20 per day and put it in a savings pot, and 1 person withdraws the money each
day. Kisna already knew some of the people in the ROSCA and they welcomed him
with open arms. Kisna deposited Rs. 20 each day, and then when his turn came,
he received INR 280, which we were able to use towards Rahul’s medical
care. Now, we are saving for our
children’s education through the ROSCA.
The commitment to save Rs. 20 each day has helped Kisna cut back on his
wasteful expenditures such as Chai, Samosas and Bidi.
My sister Radha, who lives nearby is also a part of small
savings groups, which is run by the local women in the area. She pays the deposit
collector Rs. 10 every day for 1 month, but the collector takes Rs. 10 for
every Rs. 100 that Radha saves. I thought of joining the group too, but Rita
Madam said that Radha not earning on her investment, but losing money on it by
as much as 10% saved for the entire year. But what to do, which
Bank will take our small deposits and let women like us withdraw large amounts
of money when needed?
Instead, Rita Madam also told me about a group of women who
save together and support each other during time of financial need. They call this a Self Help Group, which is
run only by 10 women in the neighboring village. I just joined this group 2
weeks ago, and we have regular weekly meetings; there is a group leader who
guides us and writes down all of our deposit information. We save a fixed
amount of Rs. 100 each week and once we will have collected Rs. 10,000, we will
be able to lend to various members of the group. Our group leader told us that
we all have to be disciplined about saving and paying our loans back. If we do
well as a group, we may also get bigger loans from the Banks. I am now saving
for my children’s education, and then someday I hope to take a loan for my
daughter’s marriage from the bank at a low interest compared to the “sahukar”.
Maybe the time has come for me to take charge of my own
financial future and manage my money better…then one day, just like Rita Madam,
I too will be able to help my friends and family save more and worry less.
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