Posted: 22/01/2009
Despite the global financial crisis, Asha's microfinance scheme is growing from strength to strength. In Jeevan Nagar slum 400 people who have never had access to banking services before, have opened accounts with Punjab National Bank. Other areas have seen a similar rate of growth; a total of 3,500 accounts have now been opened across all the areas in which Asha works.
Having a bank account allows slum dwellers to have ATM cards, acquire small loans, and develop positive saving habits. Bank accounts also allow slum residents to keep their money safe. Previously, their only option was to keep their savings in their homes, which are often insecure or open to passing traffic.
Almost all those who have taken loans are repaying them on schedule. In doing so they are building up healthy credit ratings, which in turn will allow them to qualify for larger loans in the future.
Students in years 10-12 are also opening accounts, allowing them to begin saving for their college fees or future business ventures.
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We had been working with Asha to improve our slum for many years, but our homes were destroyed as the government needed the land. Asha helped us to get land allocated somewhere new and now, 4 years later, our area has water supplies, electricity, schools and healthcare.
Parvati, Community Health Volunteer, Savda Ghevra
