Economic Empowerment

DHAN Foundation through its Kalanjiam Community Banking Programme has involved women federations actively in implementing microfinance activities through its federation. The federation aids the poor in building assets through savings, accessing bigger credits through sustainable SHG-bank linkages, promoting insurance and pension products and services for sharing risks and old age security.

DHAN visualises that women can graduate in their livelihoods ladder by accessing required livelihoods services. The process of economic empowerment would help focus on building their self-confidence, self-reliance and ensuring gender equity in the society. Urban women are generally caught in the trap of money lenders for their working capital needs, as most of them are in trading and vending businesses. Provided with timely adequate credit at an affordable rate of interest for their tiny businesses would yield them better returns. Separate line of credit for consumption prevents them from being pushed into the vulnerability trap again.

Access to credit through mainstream linkages with banks helps the women SHGs to gain leverage of funds from the formal financial sectors. Linkage funds are affordable and helps fasten the process of development for the poor. Cash credit (CC) loan from banks gives confidence to the poor that timely credit is never a mirage. CC gives the much needed user-friendliness and flexibility to the poor so that they can access bank loan when they need one and repay their loans more aggressively when they have reasonable income. The spread in the funds help the federations towards the path of sustainability.

The SHGs provide women a platform to groom and exhibit their managerial and leadership traits. Initially, women are shy and show reservation to make use of the platform, yet among themselves in the groups; they start demonstrating their traits and then extend them in their neighbourhood. Many leaders get out of their shell to become proficient community leaders. They lead by example and nurture leaders from newer groups by inspiring them to take lead.