OFFER is implementing the microcredit program in Bangalore and Kerala. In Bangalore city, interest-free loans were given to widows for small business and buying equipment like sewing machines. The Bangalore office has also integrated the loan scheme with its already existing ongoing scheme with a kitty of Rs. 25000 (€ 360) and also extending the program with another contribution of € 1300 from a private donor in UK for Madhugiri in Karnataka. 
WIND was awarded Rs. 500,000 (€ 8300) for micro-enterprise loans and extended the loan to 50 beneficiaries for starting up small trades like petty shops, cloth and apparel trading, wheat grinder, grocery, green grocer, Milk booths, Telephone booths, Juice shop, soap making, tea-shop, cycle repair etc. Loan repayment by December 2010 was 35%.

Project Description

Areas of Implementation:

• Bangalore, Hubli (Karnataka)
• Mysore (Karnataka)
• Nalgonda (Andhra Pradesh)
• Ilyangudi (Sivagangai District, Tamil Nadu)
• Areacode, Wynad, Calicut (Kerala)

Project Duration

2 Years

Project’s background

The project is aimed to provide Micro-credit and small business opportunities to widows. Islamic Relief sponsors over 1000 orphans through its Orphans 1-2-1 Sponsorship Program in India. However, a lot of the families are still struggling with their family income as they are primarily women-headed households. Many of these women are engaged in professions like domestic helpers, factory workers etc. averaging salaries in the range of $ 50-100 dollars per month, a little over the international definition of poverty which is living at $1 a day.

Project’s aims and objectives

The project aims to select 100 of the poorest of the poor of these women and give them an interest free loans of average size £100-200 each, acting as revolving grant to start small businesses, help them with existing business and/or cover financial distress for health, housing and other problems.  These loans will help them tide over the financial crisis and also increase their incomes.

Implementations and activities

The main project activities are:

• Beneficiary pre-selection
• Application of loan
• Approval of loans
• Provision of produce for small trade and income-generation
• Supervision of loan expenditure and follow-up
• Loan Recovery

Project outcomes and achievements (or expected outcomes in the case of the ongoing projects)

• Increase in household income
• Improved life standards
• Reduced dependency on sponsorship