About Gursagaram Micro Finance in Gurusagaram Micro Finance, Changanacheri

To meet the organizational needs As there was a need for a regulatory board a Micro Finance Institutions (MFI) has been set up to give guidance and instructions to the members. It lends money to the members at a very low interest. It paves the way to allow the flow of funds in a much productive way.

The MFI is responsible for providing instructions for the production of materials considering the market and the available resources. In this project the women of a particular area come together to form a group. It can have 12 to 20 members. As the women get a chance to come together, a deep intimacy arise among them which helps in creating good relationships and to admire each other as they are able to see each others qualities during the meetings. It enables them to be aware of social matters and current affairs. The meetings are conducted by the members every week at each member’s house by one. The meeting should be over by the member of that house in which the meeting is conducted.

This gives them the ability to face the audience and acquiring leadership skills. It is compulsory for members to make a speech at the meetings. Decisions are made depending upon the majority. Almost all the activities are designed like co-operative societies. Unlike co-operative societies some cultural programs of members and their children are also arranged during the meetings. Thus they get a chance to boost their talents through this. All the members should deposit a ‘thrift amount’ every week with the group. The collection of fund starts after the meeting. As it is done in front of the members it creates mutual faith among the members and also avoids confusions. The amount colleted should be deposited with bank on the very next day.

This is the responsibility of the member of that particular house on which the meeting is conducted. The amount collected is decided on the basis of the income of the lowest earned member. As per the records of the MFI the project has already collected 130crores. It also has the provisions for members to deposit the excess income earned by them. The group starts providing loans after 3 months of its beginning. Due to low interest rates they don’t need to approach banks for the same. As a result of these activities the women in these groups are now very much aware of the current affairs and have gained a high social status.