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