Social Service: Does present Bank / Financial Institute useful for...

Social Service: Does present Bank / Financial Institute useful for...: Does present Bank / Financial Institute useful for Under Privileged Citizens? Present Market Condition: Analysis has identified that ...

Does present Bank / Financial Institute useful for Under Privileged Citizens?

Does present Bank / Financial Institute useful for Under Privileged Citizens?

Present Market Condition: Analysis has identified that the present cost of financing to the under privileged citizens is as high as 10% per month and in some cases it is 10% per day also. This is done through money lenders as these citizens are non bankable. Due to high rate most of the profits goes to lender, leaving a little for them. Many a times it has been observed that a small loan bind them as bonded labourer for life. 

Even Bank / Financial Institute just provide finance only and nothing else

Case Study: A vegetable vendor needs Rs 2000 to buy vegetables and he sells the same throughout the day earning Rs 2500. The amount to purchase vegetable is taken from the money lender where he has to return Rs 2200/- (with 10% interest) by the end of the day. The vendor carry home Rs 300/- as his earnings. This is normal for the vendor as it is his daily routine and is been followed by his family since long. The vendor does not notice what he is losing out.

Bank / Financial Institute may provide finance, but who will teach them make better use of funds and earn better returns.

The conventional lending whether bank or any institute is on principal of Interest and Risk Transfer. It does not enhance the productivity or capacity of the borrower.

With the conventional lending the lender is interest in the Interest and Transferring the Risk. Here there is no feeling of any obligation, its mere transaction.

Our Model: Our project aims to provide Interest Free support along with the focus on Capacity Building i.e. Training on Skills, Soft Skills & Life Skills to see that overall resultant improves on management so do standard of earning. This even reduces the risk of business failures.

The participation in the profit & risk of the business the beneficiaries, forces to understand the business needs and provide the right advice for uplifting of the same, use the resources, so as to improve earning and profits. It also reduces the chances of loss or any risk. The overall features see that beneficiary is benefited and so do the social investor.

Some part of Profit so generated is given back to the scheme by the beneficiary, providing him the pride of contributing back to the society. This feature helps in creating the brotherhood emotions and makes beneficiary from TAKER to GIVER. Teaching them JOY OF GIVING..

Part of the corpus so collected by the project is distributed to the Social Investors as dividends, built corpus for the project and some part is used for the other objectives of NGO.

Now with this model lets see the above case:

Now once we support the vendor with Rs 2000/- he has to pay just Rs 100/- for 20 days and take home Rs 400 per day and the full amount of Rs 500 from 21^st day. The Income has appreciated from Rs 300 to Rs 500 per day i.e. growth of 67% and extra saving of Rs 73,000 per annum which used to go to the money lender as interest. Now once the same is made understood to the beneficiary along with training and consoling the beneficiaries and our staff decided what he wish repays extra from his earning / profits

This is what we call Inclusive Growth. If you agree put in your comment and or talk to Mr Zoher Doctor on +919824063400 or e-mail vikastrust1@gmail.com, who has worked on this concept and put the same in practice with his NGO Vikas Trust MicroFinance Welfare Project. Join us as Social Investor

IndiaCSR coverage for Vikas Trust

Vikas Trust Provides 360 Degree Support to Uplift the Underprivileged Citizens Through Sustainable Livelihood Initiatives

Monday, March 3rd, 2014 | Filed under NGO | Posted by : indiacsr

IndiaCSR News Network

VADODARA: Vikas Trust believes in the concept of ‘Teach Them to Fish’  and Empower them to take care of themselves. Vikas Trust provides 360 degree support to uplift the underprivileged citizens through Sustainable Livelihood Initiatives. It identifies the group or individual with its capability of skills, fine tune them, provide soft skills and life skills training, address to mental block / mind set, provide finance, set up process, provide up market and down market linkage and any other resources required.

Vikas Trust address to individual’s entrepreneurs by guiding them with Govt Sponsored Schemes and providing with resources, so as to built the capacity and grow. With groups Vikas Trust develops association and brings in under Cottage Industry / Gruh Udhyog, where the beneficiaries get at par market rate for work and also become part of the profits. This improves their takehome wages and can enjoy better standard of living. Some part of these extra income is also been advice to be saved for future. Some of the items made by groups are Food Items (Kakra, Farsan, etc), Garments, Handicrafts, Artificial Jewellery, Ceramics Items, Bags, Candles, Agarbatti and many such items.

Since 2010 Vikas Trust has touch 5000 plus lives, but recalling our early days we had tough time convincing potential beneficiaries to understand this concept of empowerment. Some Vadodara-based NGOs and well-wishers helped Vikas Trust in its outreach effort.

Changing the mindset of people, used to government subsidies or doles from NGOs and freebies, was a challenge, says Zoher Doctor.

Another innovation of Vikas Trust is the ‘Medicard’ provided free of cost to beneficiaries. The card has been structured with the support of like-minded doctors and hospitals; it entitles a person to a significant discount in treatment. The Trust is also working on preventive healthcare. For instance, Wockhardt has supported a free eye-check-up initiative and eye treatment, if any.

Other activities of Vikas Trust include distribution of medicines and vitamin supplements under medical advice as well as clothes and food grains to the needy and counseling for education and family problems.

Mr. Doctor plans to take the Trust’s activities forward by adding businesses such as building a call centre to support project ‘DIAL 4 SERVICE’ supporting 20+ services (like plumber, electrician, painter, mechanic, beauticians, drivers etc) just on a call and Job Placement Service for low profile candidates.

DIAL 4 SERVICE will cater to provide 1000 plus candidates regular job calls initially and will reach to 1 lac in a year’s time. The beneficiaries will be indentified, soft skills training would be provided and would be placed in main stream jobs calls. These services is available to members within Vadodara at present which will be extended to many cities of India gradually.

Beneficiaries looking for Job Opportunity, will be placed after giving them soft skill training, computer training and spoken English training. 1000 plus candidates will be placed in many corporate, SME and overseas firms. On special requirement from the recruiters, the beneficiaries will be trained accordingly.

Vikas Trust will also provide their expertise to rural and tribal areas in association with Vibrant Gujarat project (Govt. Of Gujarat under taking).

Vikas Trust also takes order for manufacturing of items as per industry needs from local as well as international clients / well-wishers.

If you want to extend financial or social support to Vikas Trust, contact the members at the address given below:

VIKAS TRUST
402, Bholesai Apt., Bh. Emperor,
Parsi Street, Fatehgunj, Vadodara 390002,
Gujarat Tel: +91 265 6553344 / +91 9824063400 / +91 9227896904
E-mail: vikastrust1@gmail.com Web Site: www.vikastrust.org
FaceBook: www.facebook.com/vikastrustngo

http://www.indiacsr.in/en/?p=13821

Vikas Trust's Concept Note

Concept Note

Vikas Trust believes and have adopted the formula of “Don’t give them Fish, Teach them to Fish”, as the saying goes. 

India has 30% of the population which is been on our target group, this Human Resources are not been utilized or underutilized or Exploited. During our survey we understood if these people can be molded then they can be assets to themselves, society and the nation. The ability of these groups has been killed / destroyed by religious, political and other groups who have been offering them freebies.

Vikas Trust put in lots of efforts to bring about these changes. We drive to bring out Go Getter attitude and work with those who wish to bring in change in them. The flow is as below:
Identify the deprived area, talk with the group, Check in the Living Standard and Style, Facilities available at home and in the area, Resource available with them and nearby, Habits and Likings, Analysis Mental Block, Problems & Skills in them.
Visit many times to Counsel with them for STRIVING FOR BETTER LIFE
Fine tune skills, train / develop skill for quality
Counsel / Guide for Quality, Time Management, Financial Literacy, etc
Provide resources for sourcing raw material, at best negotiated price
Provide Financial Support (Interest Free Revolving Fund) or provide linkage with Donor / Social Investor / Financial Institute
Set up process of making / service
Develop Marketing Staff for marketing of product or provide linkage for direct supply
Advice for record maintenance
Advice for Financial Planning, Importance of Tax Returns and Liabilities
Teach them and experience the JOY of GIVING

In brief we provide 360 degree support to those who wish to improve his family standard of living. 

It has been learned that many wish to get out of this condition and could not due to lacking support. With our supportive action and right counseling they can scale up and even built up their capacity, earn better and improve their standard of life.

Its needless to say, that the present condition, expolite these under privileged citizens in many ways for the vested interest, which our NGO wish to protect them and provide win-win situtation.

Social Impact - Autorickshaw Project

SOCIAL IMPACT

VIKAS TRUST objective is to see the social impact on its beneficiaries. It has been operative since last 3 years and many cases of positive impact came across us. This case is worth posting

One of our Auto Rickshaw Beneficiary who drives Auto on RENT Since last 10 years
He became OWNER last 2 years back, when he got his Auto under our Project 
His earlier Repayment is regular and getting over....

NOW he is planning to get a Second Auto.... and wish to give one on rent on easy terms.

YES this is the economical upliftment.... Yes our support, counselling and interaction with the beneficiary and their family is bringing positive results....

What say friends...

FREEBIES - Good or Bad

SOCIAL IMPACT

Few months back we happen to meet a religious leader who believes in helping poor peoples / families of their religion with FREEBIES. Recently they had distributed many Sewing Machines. On our discussion we had an argument of wrong use of this freebies and people taking undue advantage of the freebies. We even ask them to do a survey after this distribution and it right use of the resources. It was agreed by them than 50% of the beneficiaries sold off the freebies and balance 50% ie 25% people are not utilising the Sewing Machine. Only 25% the overall beneficiaries are really needy and utilising the resource. We advice them to utilize the resource to the right people and only give to the needy. To identify these needy, they need to be charged of the basic cost, so as to avoid the false claims and avoid them from SIN. Making this people commit sin, we are also participating in sin. This concept was not accepted by the religious leader at that point of time, but he latter after few months called me and accepted the concept and agreed to follow the same.
It was a huge success for us, as we were successful implanting our ideas in other and see them follow our foot prints.
Idea here is to charge, so they work and earn and repay. If the family is so needy than the collected amount can be given back after they complete the payment. The amount paid back can be utilised for other needs. IDEA OF SUPPORTING THE BENEFICIARIES IS TO BUILT CAPACITY OR IMPROVE LIVELIHOOD

Comment are welcome. Plz give ur views

INTEREST FREE LOAN

How our LOAN are different??

Our Loan are very soft i.e. INTEREST FREE and on PROFIT SHARING PRINCIPAL

We know its very tough making your both hand meet in this high inflation era. To ease on this we provide loans which are interest free and easy repayment terms. Believe me giving money or lending money doe not work all the time, so we provide then with counselling and advice on capacity building so as to improve their business / services. Work with them on Preventive Health Care and see to it that the investment is used to its maximum with better rewards to the beneficiary.

The amount given as loan is repaid by the beneficiary in easy installments and the profit so generated with this support, a part of it is contributed to the society. When the beneficiary is asked to payback as his / her contribution, so as to support others he / she feels pride of giving back and make himself a contributor to the society also.
The mental block of helplessness is removed and he generate the emotion of BROTHERHOOD.
If its an Interest part then it becomes an transaction without any emotional values.

Our Concept has worked and Uplift many and Empower them to be better Citizens. Some where on this page of fb you shall find the story pertaining to the results / Social Impact of this concept.

The Concept has been appreciated by many scholars and we wish to bring in revolutionary change in the Micro Finance Industry.