Safe from loan sharks - Mehfooz’s story
As a child, Mehfooz Ali wanted to be a lawyer. Like so many children who grow up in slums, he never had the chance to realise his ambition as he had to leave school at 14 to contribute to the family income. He worked as a labourer and had a number of casual jobs before getting a job as a driver for a courier company.
Mehfooz got married and settled down but was still worried about money. His monthly wage of Rs 6500 (around £80 or US$170) was not enough to look after his family and educate his three children. Mehfooz knew that he could earn much more with his own goods carrier and resorted to contacting local money lenders. They charged 5% interest per month - an exorbitant rate and completely unaffordable for Mehfooz. He was still feeling frustrated and helpless when he heard about Asha’s pilot loan scheme for slum dwellers. Asha staff members explained the loan scheme, assessed the amount he could repay and how long it would take, and then helped Mehfooz to fill in an application form. A loan of Rs.212,000 allowed him to buy a goods carrier that he rents out to the same courier company.
The net income after paying for taxes, a driver’s salary, fuel and vehicle maintenance is Rs.12000 each month - nearly double his previous income. Now Mehfooz is no longer disappointed that he could not become a lawyer, and is focused on his future. Mehfooz's second goods carrier is on the road, his daughter is attending a private school, and his family home is even equipped with an air conditoner to stave off the summer heat.
India's Home Minister, Mr P Chidambaram, told Mehfooz's story to a packed audience at an Asha event that celebrated the scheme's success. Mehfooz's life really has transformed, his family has a much brighter future, and it all started with a simple loan.
Getting involved with Asha was a turning point in my life. I became part of the women's group where I realised that there were other women like me, and we can be listened to and our views consulted. The confidence I gained has given me strength to help so many people.
Noorjahan, CHV and midwife, Seelampur
