Stri Shakti
Providing micro-loans for women with small businesses and supporting girls’ education
Aim: Helping women from Hazaribag, Jharkand, India, to lift themselves out of poverty
Background: Since its inception in 1999 Stri Shakti, a voluntary organization established and managed completely by women activists, has felt that organizing women into Self Help Groups (SHGs) and helping them to start income generating activities by providing working capital at affordable interest rates is the most sustainable and dignified way to help rural poor women lift themselves out of poverty. SHGs recommend loans for their members and act as a guarantor, taking responsibility for the repayment of the loan. Thus the group keeps watch that the loan is being used correctly.
The main objective of the organization is the integrated development of women and children in rural areas with a focus on dalit (“untouchable”), tribal and other deprived communities.
Programme: Tzedek’s grant will provide a core revolving fund for Stri Shakti to use for microfinance, giving loans of £65 to women on low income. They
will also provide training on business development and book-keeping. During the two year project Stri Shakti will put in place the necessary procedures to prove their credit-worthiness to banks so they can be an intermediary in further microfinance, ensuring sustainability not only for the project but for the organisation.
As a secondary aim, Stri Shakti will use part of the interest on the loans to pay school fees for young girls. The parents of the girls sign a contract saying that they won’t marry their daughters before the age of 18. The remaining interest will be able to sustain the project after the second year.
Partners: Stri Shakti was recommended by Tzedek’s long term partner NBJK as part of their mentoring programme. Action Village India, who have co-funded several organisations with Tzedek, has also supported Stri Shakti in the past. Stri Shakti is a member of several NGO networks in Jharkand.
Outcome: 227 women will receive micro-loans and their income is predicted to increase to up to £1.30/day. 40 schoolgirls will be put through school.
Evaluation: The project coordinator will monitor the progress of the project and attend monthly participatory meetings with the beneficiaries. Tzedek will receive reports every six months.
Required funds: £16,500 over two years
We are still seeking funds for this project: make a donation.
