YCB India - Youth Club of Bejjipuram

Youth Club has been implementing Micro Credit Program Sponsored by Rastriya Mahila Kosh – New Delhi under the aegis of Ministry of women and child development, Government of India. During the past 9 years YCB borrowed Rs.62.50 Lakhs from RMK – New Delhi and lent to its members for starting income generation activities. During the year Rastriya Mahila Kosh Sanctioned Rs. 75.00 Lakhs to our agency for on lending to SHGs as per our credit limit. The first installment to a tune of Rs. 37.50 Lakhs was released in November 2008. YCB lent to 53 SHGs up to Rs.37.50 lakhs and these SHGs in turn lent to 619 members in their groups. These 53 SHGs are hailing from 17 villages. Average loan amount extended to each member is Rs. 6058/-. All these 619 members started income generation activities. The present Micro Credit Program envisages credit facility in required quantity to SHG members whenever they have great need of credit support and no chance for getting credit elsewhere. The recovery percentage was 99%. In october 2009 RMK released 2nd installment of Credit upto Rs.37.50 lakhs. YCB lent Rs.37.50 lakhs to 48 sHGs hailed from 10 villages. In turn this 48 SHGs facilitated credit to 520 SHG members.

In order to provide them better management skills in running Dairy units, and Vegetable cultivation, Flore-Culture etc. We have organized training programs with the support of Departments of Veterinary services and agriculture. Marketing linkages were ensured to all these mini dairy units in their respective villages with the help of Sri Visakha Cooperative Dairy Corporation.

Main objectives of RMK programme are:

To provide or promote the provision of micro-credit to poor women for income generation activities or for asset creation.
To adopt a quasi-informal delivery system, which is client friendly, use simple and minimal procedures, disburses quickly and repeatedly, has flexibility of approach, links thrift and savings with credit and has low transaction cost both for the borrower and lender.
To demonstrate and replicate participatory approach in the organization of women’s groups for thrift, savings and effective utilization of credit.
To use the group concept and provision of credit as an instrument of women’s empowerment, socio-economic change and development.
To cooperate with and secure the cooperation of the Government of India, State Governments, Union Territory administrations, credit institutions, industrial and commercial organizations, NGOs and others in promoting the objectives of the Kosh.
To disseminate information and experience among all these above agencies in the Government and non-government sectors in the area of microfinance for poor women.

RMK had lent to YCB to the tune of Rs. 75.00 Lakhs for on-lending to SHGs at an interest rate of 8% per annum. The organization is lending to the members at 15% interest rate. YCB is lending to the BPL households as per the agreement entered with RMK. Several household enterprises were promoted by the Organisation. The organization has promoted 320 SHGs and federated them in to Mutually Aided Cooperative Society Act.

CASE STUDY

Ms. I. Appalasuramma, Aged 42 Years hailed from middle class family in Bejjipuram village of Laveru Mandal. She joined in SHG during 1997-98 promoted by YCB and started saving of a portion of daily wage she was earning. She has 3 children and faced lot of financial problems with meager income earned by her husband through agriculture source. She started a dairy unit by utilizing loan provided by YCB under main loan scheme supported by RMK during 2006. Further she purchased one Jercy Cow and maintained the unit with at most care. The cow yielded @ 6 Litre per day and earned @ Rs,72/- per day. With enhanced income she repaid the entire loan and took fresh loan of Rs.10000/- and purchased another Jercy Cow. The calf of previous cow is also grown and yielding milk. On rotation these 3 cows yielding milk throughout the year @ 6 Litre per Day. She is earning a net profit of Rs.15,000/- per year which is additional and complementary to the income generated by her husband. Now, their family leading a happier life with the intervention of YCB.