- Sterling Eight-Year Results
- Google’s Generous Grant
- Progress Report: 2008 Monitoring Visit To India
- PAT Joins Prosperity Rings' Endeavors
- Update On Rotary Grant To ANISHA
- SRI Innovative Training
- Nobel Peace Winner — Founder Of Micro Credit, Muhammad Yunus
• • •
Prosperity Rings funds are now worth 732% of the original amounts contributed at various times. Our Foundation, Prosperity Rings, provides a unique investment opportunity for donors for three reasons:
- (1) Every penny donors give goes towards loans to exceedingly poor women;
- (2) As funds are repaid they, plus interest, revolve into new loans. Thus a donor’s gift increases in value and the number of loans it can give;
- (3) Donors may find out whom they have been able to benefit.
These requirements are written into the Prosperity Rings contract with our micro credit partners. Based on this assurance and reports from our partners, the information listed below is our best estimation, accounting for differences in loan amounts, the duration of loans and other variables. What a prosperous yield on investment!
Organization |
1st Loan |
Total Funds Granted |
Total Revolving Plus Interest |
Loans |
Repayment Rate |
SPANDANA |
2001 |
$21,324 |
$304,644 |
1,612 |
99.80% |
CReSA |
2001 |
$12,498 |
$228,550 |
1,172 |
100% |
SRI |
2004 |
$16,402 |
$100,003 |
558 |
98.99% |
ANISHA* |
2005 |
$57,500 |
$155,116 |
1,078 |
97.75% |
Totals |
|
$107,724 |
$788,313 |
4,420 |
 |
*ANISHA data includes the Rotary grant. Data for CReSA, no longer our partner, is an undocumented estimate.
At the suggestion of Network For Good, Prosperity Rings applied for a Google Grants Award. On June 16th we received an email: “I am happy to let you know that your organization has been selected for a Google Grants Award. We are pleased to have the opportunity to help you get your message out to a targeted audience of Google users. We have created and activated the Google AdWords campaign for Prosperity Rings.”
The Google Grants account for Prosperity Rings provides an in-kind daily budget of $330 ($10,000 a month) with a maximum cost-per-click limit of $1.00. The Ads that come up are free. We have designed specific and highly targeted keywords that are effectively bringing up our ad campaign and web site on searches. The grant will run for as long as our organization remains actively engaged with our AdWords account. We are exceedingly grateful for being honored as a Google Grants Awardee.
• • •
Progress Report: 2008 Monitoring Visit To India
ANISHA MICROFIN ASSOCIATION
On September 22nd, we landed in Trichy, Tamil Nadu, India where ANISHA, one of our three partners in India, is headquartered. ANISHA has a total of 3,952 borrowers. Prosperity Rings purposely works with small micro credit partners, who need seed funding, because they are still too small to acquire bank loans. We first visited the staff and then went to visit Prosperity Rings borrowers, all of whom are in rural areas. Most of the borrowers used the loans for milch cows to sell their milk; palm leaf weaving for roofing, weddings and festivals; or agriculture of rice paddy for which they lease land and sometimes hire workers. The problem with Milch cows is they are pregnant much of the time and don’t give as much milk then. The problem with palm leaf weaving is that the demand appears to be seasonal. Agriculture is also seasonal. Therefore, though these very rural people are some of the poorest, we would have preferred for them to be using their loans to establish a regular income generating enterprise. The groups meet only once a month for repayment meetings. They do not receive training at those meetings.
The ladies in the Prosperity Rings groups were as unanimous as they could be that, after receiving the loans, each had more self confidence, had more decision making power in the family, felt closely bound among the group and received support from each other. Most said their husbands were supportive of their loan endeavors and helped them make their repayments. Often we had men and children gathering around the perimeter of the group meeting. At one point a man listening as a bystander complained that “this lady is speaking a different language. How are the ladies supposed to trust and understand her.” After evesdropping on the meeting with the program coordinator translating, he was completely taken in. He committed to help the women get the government to widen the precariously narrow bridge to their town over which we held our breath as we crossed in the vehicle.
One group was in a village of stone cutters, i.e., each borrower has a daily truckload of large stones delivered, and she sledge-hammers those rocks into gravel all day. These ladies became empowered enough that they pressured the local government Panchayaad to provide 20 cook tops with 50 pound-propane gas tanks for their families. Davagi, a real pistol, says she is like a commander. She and the others successfully petitioned the government for a drinking water pump. All of the Prosperity Rings borrowers fetch water from the local water pump; most have no latrines whatsoever, many have no electricity in their homes; and almost all of them cook with fire wood. Becoming community leaders, other borrowers acquired “street” lights three months ago by petitioning and one group forced a local government leader to recant, when he had college students clean a graveyard for free and then claimed repayment from the government.
We slogged through rice paddies (saris and pants muddied up to our knees) and banana groves to see the work in action and its results. One evening we waited until after dark for two groups to gather, and had lots of children and men holding flashlights for us to see the person speaking. I suggested the ladies sing while we waited for the stragglers and was rewarded with a delightful lady leading out, with the others echoing her words for a good ten minutes. It drew the group together beautifully. I always had each woman introduce herself and tell about her husband’s occupation, children’s education and the enterprise she took the loan for.
Our main themes for passing along some education were how to promote good dental health (so many have lost and decayed teeth), not marrying young girls to older men so that they become young widows and suffer for many years, and not intermarrying with relatives and producing disabled children. We talked them into petitioning the government for community latrines, at the very least. These good discussions established a personal rapport among us.
All the school-aged children of our borrowers attend school up to at least 8th standard and some are at universities. Many of the parents are not able to read, so end up paying for “tuition” (tutoring) for their children to supplement the poor education they receive in the government schools. For those who can read, we encouraged them to read the newspapers to find out ways to get help from the government and charitable organizations. Issues of alcoholic husbands of borrowers were discussed several times. We shake every borrower’s hand and say a few words at the end of the visit which seems to make them understand how important they are to us and to their mission.
ANISHA employs only 13 staff members — seven are field officers of which four are men. It has one branch. ANISHA has a total of 3,952 borrowers and 9,079 members, i.e., those who are waiting for loans or just accumulating savings. 100% of borrowers and members are women. Borrowers meet once a month to repay loans at a interest rate of 15% annually and 2% service charge on the loan amount. The repayment rate is 97.75 for 2008.
John Peter asked us to give his staff some training and ideas for improvement. The field officers need to find and arrange community sources for training, possibly by getting an intern to handle this task. ANISHA needs to find more funding. The Board of Directors rejected loans from banks offered to ANISHA in 2005 and 2006 because the interest rate was 12.5%, withholding 10% of the loan for margin money. Now those rates have gone up even more.
SOCIETY FOR RURAL IMPROVEMENT (SRI)
We traveled nine hours by train to Palakkad for our visit to SRI. Nisha, Program Manager, always hands us a typed schedule with time allotments for each event. The groups have gathered to await our arrival and parade out to greet us with a bouquet of flowers. They often have a oil lamp lighting ceremony and always serve refreshments that have obviously been prepared ahead — tender coconut, hot tea, snacks. We were able to sit down with all the Prosperity Rings borrowers in their villages except for the last one, when we ran out of time doing case studies. We followed the same procedure that I did with ANISHA borrowers resulting in good discussions, rapport and feedback. The ladies reported benefits of having their own income as being more independent, confident and proud of themselves; having more clout in making decisions; becoming role models and having other villagers come to them for advice and to form new borrower groups. They have discovered they can accomplish more than they formerly thought they could.did not use the loans for what they said they would, such as the one who used hers for a marriage and another for a job for her son in Dubai! Again business plans would avoid this sort of problem, but staff needs to follow up to ensure compliance. SRI has 150 staff of which 85 are female. It has 29,984 borrowers in groups of 10 to 20 who meet once a week to repay loans at a rate of 10-12% interest repayable over one or two years. 100% of borrowers are women. An initial, one-time training fee of Rs. 50 is charged. The repayment rate on micro credit loans was 99.988% in 2007.
Kerala has a democratically elected predominance of Communists in its Parliament. Its economy is based on democratic socialist principles and is still far below the world average. Borrowers have gotten either loans for or free toilets, housing assistance, electricity, land (20 cents or 1/5 of an acre) and one got a cow from the local Panchayaad. Lush and wealthy with water resources, nearly half of Kerala’s people are dependent on agriculture alone for income, mostly rice paddy, but also tea, coffee, rubber, cashews and spices. The people are more literate than other States, but most of our borrowers supplement government education by paying for tutoring. SRI has educational programs and scholarships for children of borrowers and does many training programs for borrowers. Some of the trades they have given training for are: umbrella and soap making; tamarind packaging; mushroom cultivation; tailoring; and various snacks. The majority of borrowers have latrines and electricity, but most still haul water from the local pump and cook with fire wood. Again alcoholism among their men folk is a problem for a few borrowers. Almost none had kitchen (home) vegetable gardens. This was a disappointment and a topic on which I got on my soap box at meetings with both of our partners. Like ANISHA, most of the borrowers have limited, often seasonal, small income-generating enterprises, supplementing their husband’s daily wages income. We am constantly struggling with the concept of loaning to the very poor versus loaning to those who can expand a business and eventually employ more people. I would like to require that borrowers submit a brief business plan in order to qualify for a Prosperity Rings loan to clarify for everyone involved exactly what is to be purchased, for what income generating purpose, what the market is, what possibilities for expanding exist, and what profit is expected.
SRI’s Prosperity Rings borrowers that we interviewed utilized their loans for the following: leasing land and doing rice paddy farming (very labor intensive and can hire others); tailoring of their daily wear called nighties (I encouraged expanding to carry ready-mades and to make school uniforms, saris, etc.); tea or petty shop or road side restaurant; pappadam and other snacks making; palm leaf weaving; milch animals to sell milk. Those borrowers purchasing milch cows and goats often were sold poor specimens due to ignorance on selecting animals. We are encouraging SRI and ANISHA to provide an expert on animals to shop with the borrowers. SRI does provide insurance on animals, whereas ANISHA does not. A few of them did not use the loans for what they said they would, such as the one who used hers for a marriage and another for a job for her son in Dubai! Again business plans would avoid this sort of problem, but staff needs to follow up to ensure compliance. SRI has 150 staff of which 85 are female. It has 29,984 borrowers in groups of 10 to 20 who meet once a week to repay loans at a rate of 10-12% interest repayable over one or two years. 100% of borrowers are women. An initial, one-time training fee of Rs. 50 is charged. The repayment rate on micro credit loans was 99.988% in 2007.
Prosperity Rings’ micro credit loans, in partnership with SPANDANA, SRI and ANISHA are, without a doubt, enhancing the lives of some formerly hopeless families in rural India. Growth and improvement is always recommended and a goal for everyone involved.
• • •
PAT Joins Prosperity Rings' Endeavors
While in Trichy, we interviewed the President K Hirudayasami and Secretary R Stephen of People’s Action for Transformation (PAT). PAT had completed our requisite questionnaire to determine eligibility for Prosperity Rings funding and looked quite good on paper. K Hirudayasami drove us to one of the rural self help group (SHG) meetings where we observed a well structured repayment session and met the borrowers. We were quite favorably impressed with PAT and have invited them to submit case studies of those needing loans to mount on our web site as a starting point to work with them.
PAT works with the state government fund, Women Development Corporation, which gives them about Rps 600 ($13) per person to screen for members and forms SHGs. They have 400 SHGs — each with of 15 to 20 members (24,146 total) under this plan — which operate with members’ savings plus 3% interest. The government provides the SHGs with technical, leadership, parenting, and literacy training, and then requires PAT to bring bus loads of members to government gatherings of dignitaries.
In addition to this program, in 2003 PAT began receiving funds from the Friends of Women’s World Banking (FWWB) to grant loans to women for establishing small enterprises. Seventy five of PAT’s staff members are female; only four are men. Of the 13,156 borrowers, 75% are rural, mostly involved in agriculture and milch animals. They have accomplished a repayment rate of 97.2%. Repayments are made once a month, in 10 installments, at 10% per annum, with 2-3% service charge.
• • •
Update on Rotary Grant to ANISHA
On the occasion of the Prosperity Rings’ visit to Trichy, we met with current and former Presidents of the Rotary Club of Tiruchirapalli to discuss the progress of the grant disbursements toward 396 initial loans, which have now revolved into a total or 608 loans. The Rotarians, as well as representatives of Prosperity Rings, are pleased with the selection of borrowers as recipients of the loans based on their viable enterprises. The Rotary Club of Tiruchirappali required the loans from the Matching Grant to be used in urban Trichy. Examples of enterprises we visited were:
- popcorn making and selling
- wax candle factory
- synthetic gem stud making
- international and local telephone booth and shop
- middleman for bricks and mortar (husband a Hindu priest)
- selling old clothes, plastic and stainless vessels
- renting large cauldrons and chairs for weddings and festivals
- soft drink making and bottling
- roadside “diner” beside a hospital
- vegetable selling
- packaging foods
- tailoring shop with employees
We conducted in depth interviews and took photographs of the borrowers at their work place. The Rotary Club of Tiruchirapalli is interested in presenting the idea of a second micro credit Matching Grant to the members in the Spring. While attending their weekly meeting, we urged the Rotarians to lend their expertise in training sessions for the borrowers and to visit the loan recipients’ small enterprises.
• • •
We congratulate our beneficiary, the Society for Rural Improvement (SRI), on its exemplary training of borrowers in a multitude of skills and enterprises. Groups of borrowers in six villages designated for Prosperity Rings loans have become skilled in techniques toward making umbrellas, candles, dolls, soap, areacanut leaf products, and plaster-cast idols. Others expanded their expertise by participating in a class on sustainable farming. Orientations on gender issues have equipped them to make positive changes in their lives and in their communities.
During our latest visit we spoke with the women about how the microlending process has affected them. In the past three years, they said, the group meetings have contributed a sense of belonging, closer relationships and the security of support from the others. The loans have also improved their self esteem, helped them feel more empowered, and improved the entire family’s lifestyle and facilities. They can now send their children to school!
SRI has recognized the importance of gaining an education by giving scholarships to borrowers’ children, and providing tutoring.
• • •
Nobel Peace Winner — Founder Of Micro Credit, Muhammad Yunus
Prosperity Rings is pleased to inform you that the "father" of our micro credit work won the Nobel Peace Prize for 2007. "Bangladeshi economist Muhammad Yunus and the Grameen Bank he founded won the Nobel Peace Prize for their pioneering use of tiny, seemingly insignificant loans-microcredit-to lift millions out of poverty," wrote the Associated Press on October 13, 2006.
In 1974 Yunus had a "eureka moment." The economics professor met Sufia Begum, a 21-year-old mother of three, who was weaving bamboo stools with calloused fingers. Upon his inquiry, she told him she borrowed five taka (nine cents) for the bamboo for each stool and gave back all but two cents to the lender. Thus began Yunus' concept of giving very small loans to the poor people of Bangladesh.
Across the world, his micro lending concept has now given women, mostly, who could not qualify for low-interest loans, an opportunity to buy milking animals, raise chickens, sew garments — in short, establish their own business — and thus raise their status and feed and educate their families. Dr. Yunus said he will use his share of the $1.4 million to create a business of his own, producing low-cost, high nutrition food for the poor, and will also create an eye hospital for the poor of Bangladesh.
Dr. Yunus is pictured here with colleague Prosperity Rings President Nancy Pasternak on the occasion of their meeting in Dubai in March 2007. Prosperity Rings is proud that its India partners replicate the grass roots level concepts of the Grameen Banking system.
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