Savings and thrift culture:
Savings and thrift are part of ancient and traditional cultures; the women have practiced these skills in household activities throughout history and around the world. Undoubtedly saving is a powerful tool to overcome poverty.

The right combination of saving and micro-lending can uplift the poor. SERD has encouraged the poor to join savings groups. Each member is required to save Rs.50/- a month and to deposit the amount in a National Bank. All the groups operate with common rules and regulations for smooth running of the schemes. They are mentioned hereunder.

Membership:
(i) A member should be a married woman between 18 and 59 years.
(ii) Each group should consist of 10 to 20 members from the same village irrespective of community.
(iii) A member's name should be recorded on the family's ration card and a Xerox copy should be submitted as an identity document.
(iv) A member should produce a letter of recommendation from the community or village head.
(v) A member should not register in another Self-Help Group.
(vi) A member should not obtain loan assistance from any bank.

Group discipline:
(i) A Group should be formed with 10 to 20 members.
(ii) It should submit applications with a promissory note.
(iii) It should maintain a minimum 7 record books.
(iv) Monthly savings should be Rs 50/-
(v) It should conduct monthly meeting.
(vi) Widows/ deserted women should be given priority when any benefits are sanctioned
(vii) The savings should be deposited in the National bank.
(viii) The accumulation of savings should be used to fulfill the urgent needs of the group members and the interest should be 2 percent.

Book maintenance:
Each group has to keep 7 record books for maintaining clear accounts that can help the group leaders to reduce friction among the members and to exercise transparency if any doubts are raised in the group. These books help to clear disputes quickly. This exercise creates confidence, and a friendly situation.

Accounting of savings and lending is maintained in the following books.
(i) Savings book
(ii) Loan book
(iii) General Ledger
(iv) Cash book
(v) Basic Register
(vi) Minute and Resolution book
(vii) Attendance Register

In addition to this, another 4 books are also maintained
(i) Loan receipt
(ii) Loan Repayment receipt
(iii) Member's savings pass book
(iv) Member's loan book

The following registers are maintained in SERD's office for savings and micro-credit activities.
(i) Group admission form file.
(ii) Group loan form with the signature of the loan recipients.
(iii) Group details book
(iv) Loan disbursement details book
(v) Loan repayment books.

After complying with the above processes, the savings groups are introduced to the bank, and can open an account and deposit their amounts. SERD makes a link between the group and the bank that is furthering the micro-finance services from time to time.

Micro-lending:
After the successful completion of a 6-month period of continuous savings in the bank, a group can get loan assistances. Priorities are given for setting up an income generation unit, to repay loans borrowed from money lenders, for urgent need of a family, for meeting medical or educational expenditure and for buying essential food.

Before the disbursement of loan assistance, the following terms and conditions are to be strictly followed.
(i) The applicant group should open an account in an approved bank, and should deposit savings for a minimum of 6 months without default.
(ii) The savings should be regularly deposited in the bank
(iii) A member should not borrow a loan more than once.
(iv) The group should repay any loan in full without default, if it has already got loan.
(v) It should properly maintain all seven account books.
(vi) If a loan recipient dies or withdraws membership, or refuses to repay, the remaining members should take responsibility and should complete the repayment course. This should be promised in written form.
(vii) Every loan recipient should promise to spend the loan amount for the requested activity and no diversion of funds for other purposes is permitted.

Insurance benefits:
The poor have no hope for the future or for social security. They cannot plan for their children and their own future. If a bread-winner falls ill, the whole family will be hungry. Similarly, if a bread-winner meets an unfortunate accident and looses his life or is disabled, again the family cannot find any remedy so SERD has introduced and covered the savings groups with insurance benefits. In this scheme, a member should pay Rs 100 a year as a premium. The Central Government pay same amount into the member's account. If the member dies naturally, the vulnerable family can get cash benefit about Rs 20,000. In case of life loss caused by an accident, the family will be given Rs 50,000. Limb loss is also considered sympathetically and awarded about Rs 500  for the victim. SERD has motivated and encouraged 2160 members from 200 groups to take group insurance provided by the LIC of India, Madurai Division.

Mrs.H. Saravanavanitha wife of Haridass from Kilzhanetur village died after child birth. Her family got cash about Rs 20,000/- under this group insurance. It was more helpful for Haridass, he repaid the loan balance Rs 10,000/- and the remaining part was used for feeding and caring for the newborn baby.

Self-Help Groups
Hold Your Breath! Loan repayment 100% - Members have developed a banking culture, know how to conduct their accounts, are able to liaise with the bank, NGOs and other agencies. Money Lenders have made a silent exit and disappeared from the scene. The image of our bank is on the ascendancy and the poor people who were rat eaters have become goat keepers.

The Azagapuri Village does not reflect the beauty of the hamlet, but reflects the ugliness of poverty. Eating rats, has been routine for them for the last 3 to 4 generations, not because they love rat meat but on account of lack of money to buy rice, their stable diet. People were shocked when they learnt these horrifying stories through print and electronic media; Morning coffee could not be gulped when people read that lack of employment, and denial of credit, could lead to such untold misery and abhorrent happenings.

The Azagapuri Village, is situated in the remote area in Sivagangai district, where the people are denied access to good roads, electricity and drinking water. Behold! they do not even have enough land to construct a tiny shed. The existing thatched and leaking sheds are constructed in Government "poromboke"  lands. These "Valayams" are illiterate and they work as agriculture labourers with meager incomes to sustaining their livelihood. Poverty and illiteracy remained as the main impediments for economic progress and social prosperity. Add to this, the monsoon failure for the last 3 years and incomes were a pittance; money lenders had a free run, exploiting these have-nots and consequently these people were being crushed under the weight of usury.

At last, the women decided to fight back! They gathered themselves under Mariamman Self-Help Groups with 20 members on 26 October 1999 through the passionate help given by an NGO. SERD Manamadurai revolving fund was sanctioned under the SGSY scheme. Once the group gained enough savings and money, they selected an economic activity suitable to their environment. Our Vembathur branch has sanctioned a sum of Rs 1,25,000/- for goat keeping; goats are known as mobile banks- ready to encash when necessary. Herds of billy and nanny goats made a ideal breeding group to produce enough kids for retention and sale.

Goat farming is an age-old activity that is able to sustain itself even during drought and famine. These browsing hardly animals bring ready money to farmers and equal the debit cards of the banks. Additional income is generated @ Rs 6,000/- per year per member.

Administrative Office:
L. PANDI
Secretary
Social Education for Rural Development (SERD)
#5, Krishnarapuram Colony, Manamadurai -630 606
Sivagangai District, Tamilnadu - South India.
Phone # : 914574268734
E - Mail : humanrightslegalcell@yahoo.com
serdindia@yahoo.co.in