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By Shini Ashok, Ujjivan
Cross-posted from Ujjivan as a part of their on-going collection on girls leaders in monetary inclusion
Dr. Medha Purao Samant, is likely one of the finest recognized figures within the areas of Monetary Inclusion. She has many accolades to her title, “Entrepreneurs Worldwide Award for the yr 2003”, “Ladies Leaders in Microfinance”, by Indian Faculty of Microfinance for Ladies, “Adishakti puruskar” by the arms of Dr. Kiran Bedi. The newest being Microfinance India Award by Entry Help, within the class of Group Owned Microfinance Group of the Yr 2014, however for her prospects and her staff, she is going to all the time be their ‘Medha Tai’.
Born to a household of social activists, Medha Tai was all the time inclined in the direction of the reason for ‘banking for the poor’. Someday she determined to formally finish a 12 yr outdated profession in a industrial financial institution and commit her life to the trigger. She together with 9 different girls, who have been her first prospects, wrote the story of Annapurna Pariwaar. At present Annapurna is a bunch of 6 Non-Authorities organizations working in Mumbai and Pune for the city slum dwellers, with a imaginative and prescient of empowered girls in a sustainable household.
Shini: What was your inspiration behind beginning the microfinance unit? Was it your mother and father, each of whom have been extensively recognized social activists? Or was it story of frequent girls like Shavantabai & Laxmibai who impressed you? Or was it the rest?
Dr. Samant: You recognize, inspiration will not be a at some point factor. It doesn’t occur immediately. It’s a lengthy course of. It is dependent upon how you might be purchased up and in addition how your thought course of is formed alongside the way in which. You develop a liking for one thing. You consider it day in and time out, it turns into your ardour. Cash turns into not vital. You additionally want a consolation degree that this could be one thing you propose to do for the remainder of your life. It was the identical that occurred with me. I used to be working for a industrial financial institution for 12 years. I all the time knew that banks are usually not doing what they’re speculated to do. Within the current years, Reserve Financial institution has been speaking about Monetary Inclusion, few years again the time period was Precedence sector lending, a lot earlier it was referred to as mass banking. It’s the usual wine in a brand new bottle. Each 10 years they package deal it in a different way. The ideology behind it stays the identical, to offer monetary providers to lots. Anyone who’s poor would additionally want the identical monetary providers such as you and me. They want loans for enterprise growth, financial savings service to save lots of their small financial savings. They want insurance coverage protection for well being, life, household, belongings and so they want pension. The poor even have many different wants which can be non-financial. All of our initiatives come out of that understanding that poor will want all these providers. This isn’t only a dry mortgage program the place I give a mortgage and also you repay it.
I come from a household with a robust social orientation; each my mother and father are social activists. My husband too is from a social background. So I all the time had a really supportive surroundings round me. Most of our discussions at residence have been round these topics. That was one of many elements, on the different finish; my banking job was additionally resulting in frustration. Not that I used to be personally sad. It was a really rewarding job, it paid me nicely and at my designation I used to be entitled to many different advantages. However I all the time felt that we weren’t reaching out to the poor. Our prospects have been nicely educated elite folks, who may stroll in and dictate their phrases. The vegetable vendor simply throughout the road was nonetheless borrowing from the cash lender. Everybody may see that. I too noticed it however I additionally understood their actuality of life and tried to assist them. That was the one distinction.
Shini: Such as you stated you stop a profitable profession on the financial institution to pursue a social trigger; you took this choice barely in a few months. What was the impetus behind this brave step?
Dr. Samant: It was an easygoing life, it provided utmost consolation. At present banking has additionally grow to be a really demanding discipline, however that was 23 years in the past, banking job was not all that demanding. Although, I had stop in a few months after the primary mortgage, however truly the choice making course of had began a lot earlier. The considered ‘Banking for the poor’ was all the time brewing in my coronary heart. I had additionally mentioned with my household about my choice to stop the banking job and commit entire of my life to the poor. Microfinance was nowhere within the see then. It was 23 or 25 years in the past.
It was by no means a sudden choice, for the exterior world it regarded like that, however in my thoughts I used to be all the time planning. For others it got here like, you simply began giving loans and in a number of months left the financial institution job. It wasn’t that, it was truly only a trial; it was a check of group solidarity amongst these girls. We initially began with a bunch of 10, one dropped proper at first; we needed to undergo an preliminary set again. However fortunately the remainder of them continued and took the duty for one another. After the set interval of fifty days, we have been assured of one another. I used to be assured sufficient that this mannequin will succeed. It was only a validation. The choice was already made a very long time again.
Shini: Individuals challenged your thought course of at each step, whether or not it was doing microfinance or selecting a cooperative construction of operations, what was your supply of confidence?
Dr. Samant: [Sighs] One in every of my board member was like, ‘Ohh my God! what are you speaking’. It was a time when there was excessive tide of microfinance, everybody was speaking about NBFC, and Co-operative construction regarded very unwise. It was a time when Indian Abroad financial institution was prepared to take a position 5 crores with us and our portfolio was solely 3 crores. It may have been a NBFC three way partnership. It was then once I stated no to the three way partnership and strongly stood behind my choice of choosing a cooperative construction. I needed to persuade my board members which took me a whole lot of time.
One factor that helped me rather a lot all through the way in which was that I used to learn rather a lot, I take advantage of to analysis rather a lot, now my eyes don’t allow me for voracious studying, however 10-20 years in the past, I learn rather a lot. I learn in regards to the RBI tips, I examine cooperative legal guidelines, I additionally learn many a issues in regards to the NBFC construction and what have been the loopholes and many others. I learnt from my father, to check every little thing, all the professionals and cons of any choice earlier than leaping into it. My mom has the guts of an activist; she first listens to her coronary heart after which her thoughts. I believe I’ve acquired the qualities from each my mother and father. A few of my choices look very fast, however I’d have deeply studied and researched nicely. I knew NBFC mannequin had flaws. NBFC couldn’t generate cash from poor folks’s personal funds, so that you lose out on a chance to gather that small thrift and pool up a fund. NBFC don’t have a restoration clause and one other weak spot was that NBFCs might be perpetually borrowing from others. So these have been 3 flaws I fastidiously considered and got here to a conclusion. I additionally consulted some very senior bankers from the sector. My father’s associates who deal with me like their very own daughter, due to this fact, I additionally collected varied professional opinions. Like one of many ideas from Shiv Khera ‘leaders don’t do various things they simply do issues in a different way‘. I’m not saying that I’m a really nice chief however I believe I’m a significantly good staff chief, and as a pacesetter you don’t suppose what the present development is, you consider what can be the very best for all. As time progresses, the world realizes the affect of the choice and appreciates why that call was vital at that time of time. Each time I’ve taken a name of my coronary heart I’ve backed it up with thorough analysis and research. Fortunately all of the trustees, board members confirmed sufficient belief in me and allowed me to go forward with no matter I assumed was appropriate.
Shini: Inform us the story of the magic cash.
Dr. Samant: Cash is cash. Good correct funding at correct time and at correct price is what everyone needs for. However the distinction within the case of the poor is that they aren’t solely poor they’re additionally illiterate. So for them it’s magic. There have been 9 girls who borrowed from me. That was a fifty day cycle, every little thing I’d ask them, like ‘chalo group banayenge kya, after a one and a half yr lengthy dialogue they stated ‘chalo banate hai’ any they pulled up 10 girls, one dropped out, now there have been 9 girls. They stated okay now we are going to maintain one another tight. I needed to lend them on their very own phrases, however they have been solely uncovered to the mortgage patterns as of the native cash lender, Anna. So if I requested them how a lot mortgage would they want ‘mortgage kitna chahiye,’ they stated “1000 rupees that’s enough for us.” How will you repay? 25 rupees every day, as a result of Anna does it that method. They have been by no means conscious of the curiosity they incurred in the entire cycle. I simply did it as an experiment. We have been intently interacting every single day. It went on for 50 days and by the tip of fifty days the quantity was 1250, the mortgage I gave them was 1000 rupees. Out of the 1250, I stored Rs.50. I stated this can be a service cost. I didn’t even wish to name it as curiosity. I defined to them how these 50 rupees every may assist us rent staff or different associated bills. And the financial savings of Rs.200 can be for them. It was then once they stated, it’s the identical quantity we paid to you for a similar 50 days as we paid to Anna then how do we’ve these 200 further, your cash is magical.
I defined to them. ‘That is our cash, it’s a must to protect it. It’s our capital.’ For me these phrases have been magical. Once you say it’s mine folks don’t have possession, whenever you say it’s ours anyone and everyone would shield it. There on, each time they included a brand new borrower or member, they’d clarify to the brand new member every little thing, issues such as you can not skip installment, that is our cash, and in case you don’t pay we are going to sit in entrance of your home. It was easy arithmetic. 50 rupees will not be a small quantity in case you put apart that as a capital, a bunch capital then you definately construct on that. It was a great experiment. For them the cash was magical, for me it was the thought which was magical.
Shini: Such as you simply talked about, it has been outdated wine in a brand new bottle, whether or not it’s referred to as monetary inclusion or mass banking. Given the brand new reforms within the sector, what do you suppose how a lot of a task microfinance can accomplish?
Dr. Samant: MFIs have a really massive position. Now most MFIs are turning into banks. Although I’ve not deeply studied the construction, nonetheless I really feel that in case you flip right into a financial institution you can be doing restricted microfinance and three or 4 limitations might be all the time pertinent.
- Banks have SLR and CRR circumstances to be met. So 40% of the funds will go in the direction of SLR and CRR, even when these limits are just a little relaxed, it can nonetheless be round 35-40%. Nonetheless you’ll have solely 60%.
- Banks are usually not allowed to offer unsecured finance. Solely 15% of the portfolio may be unsecured. Then Microfinance portfolio might be restricted to fifteen%.
- There are additionally tax limitations
Due to this fact, I really feel that any good MFI mustn’t flip right into a Financial institution. That is purely my private opinion, as a result of in the event that they flip right into a financial institution then you’ll transfer away from the aim of economic inclusion. At Annapurna, until this second it’s our choice that we don’t wish to grow to be a financial institution. I don’t know tomorrow what new adjustments may are available however I’m certain we will accommodate these adjustments and have the ability to embrace the society. Microfinance means finance for the poor. We must always not have our personal objectives. The banks or the cooperative banks can not attain out to the poor by the very construction. Good MFIs I believe may be good cooperative societies, so the construction by itself turns into extra conducive.
Shini: Annapurna facilitates its prospects and different girls within the society with some very fascinating awards like profitable entrepreneur, finest mom and social achievement award, even the very best father award. What’s the motive behind such awards?
Dr. Samant: You’ll be able to always remember that we work with the very poor girls, who’re by no means appreciated by their very own households and the close-knit society they dwell in. Who will have a look at her and say ‘Ohh!! My God she is an excellent mom’? Everyone seems to be busy with their very own day by day struggles of life. And it’s a deep seated want of any human being that somebody ought to respect. Somebody ought to say ‘that you’re doing a very good job’, it offers them a way of pleasure. And whenever you respect and felicitate a number of girls in a crowd of 20000 girls, you name them on the dais. They really feel a lot empowered and them, the others within the crowd are impressed and wish to win it for themselves. Yearly, after the AGM, round 1000-2000 girls wish to come and shake my hand and contact me, simply have a look at me and say ‘tai we’re so pleased with you’. Subsequent yr I’ll win that award. I believe that may be a very massive emotional want that we tackle right here. Although we’ve a scholarship program the place we cowl single girls, however there are such a lot of girls who’re single who’re struggling, there are some whose hardships by no means recover from even after getting their daughters married. Typically, the husband would ill-treat the daughter or at occasions there are circumstances of sudden deaths, these daughters return again residence. These moms must be appreciated. They really feel empowered.
Even males, the truth is we’ve only a few males debtors. However even amongst them we’ve seen this class and it creates a huge effect. Let me share an expertise. There was a male borrower, who was an auto rickshaw driver, his spouse suffered from psychological sickness after her third supply. She died after delivering the 4th child. He selected to not remarry. He confronted a whole lot of hardships, he was doing many a factor for his kids, however there have been additionally occasions, when he additionally shouted at them, occasions when he resorted to alcohol. However nonetheless we selected to offer him that award; he was so overwhelmed that not solely did he cry on the stage. The identical very night time he referred to as the LSO and department supervisor spoke to them for half an hour and cried he repeatedly stated ‘to this point ever in my life nobody has ever advised me that you’re a good father. At occasions, I knew that I used to be being a foul father. I yelled at them. I knew they have been motherless, I really feel unhealthy for them however the place else would I take out my frustration. Mera seena chouguna ho gaya hai’.
We even have finest entrepreneur award. They’re good examples of how one can grow to be a great entrepreneur. There may be additionally a whole lot of social duty linked up with what they do. You’re additionally creating job alternatives for others. All our members have a look at them as their position fashions. We even have social awards for girls who exit of their technique to battle towards societal evils like dowry, inter-religion, inter-caste marriages, and remarriages – divorced or single mom. So these girls are felicitated. Such circumstances are distinctive circumstances however they do exist within the society. We’re not solely simply giving awards we’re additionally creating a price system, encouraging inspiration. These small issues go a good distance in empowering folks. Giving solely loans will not be empowerment, it is just monetary empowerment however these actions assist social empowerment.
Shini: 99% of the staff in your group are girls. A few of them have been related to the group with as a lot as 19-20 years, how do you handle to encourage them and maintain them so motivated?
Dr. Samant: I really feel that there’s a slight distinction between a girls lead group and a male lead group. I contemplate Ilaben as my position mannequin. The group lead by her ‘SEWA’ can also be very related in these parameters. In a lady lead group you create an surroundings and tradition for girls. It’s skilled, it’s promising, nonetheless it’s not that demanding, that their private life takes a again seat. There are two roles each lady has to play. One is the productive duty and one is the reproductive duty. A girl has to separate her life between these two tasks. Productive is the sphere out of residence, skilled satisfaction, however she additionally has to maintain her household. I believe I’ve created a conducive surroundings at Annapurna. We don’t rent MBAs, there are solely MSWs. They wish to have knowledgeable life with a coronary heart for poor. She Introduces me to Syamala, who heads the day care mission, has been with the group for 13-14 years. The mission is her child. She is pleased doing it. She has an possession feeling. Everyone seems to be pleased doing what they’re doing and so they have a piece life steadiness. I deal with my members with a whole lot of respect and I believe that flows down. At Annapurna it’s a whole no no to shout at anybody or communicate indecently. We’ve got a whole lot of dialogue and dialogue so everybody feels very accountable. Everybody has a set position communicated to them from the beginning. They’ve a 30 day planning. I all the time search opinions from my members, if we may do one thing this fashion or that method, then collectively we resolve what we wish to do. My father all the time spoke to me in that method. He all the time handled us with a whole lot of respect. He simply confirmed us the professionals or the cons of any choice and left the choice to us. That method we have been all the time answerable for our personal actions. It’s a persona trait of a person, however as they’ve been with me for lengthy, so they might have picked up issues on the way in which. They’re all the time part of choice making. I believe this stuff may have stored them concerned.
Shini: Transparency is likely one of the values that you’ve got clearly communicated as an vital worth for a corporation or enterprise mannequin, what are the others in accordance with you?
Dr. Samant: Democracy. It’s on the core of every little thing. Whether or not it’s your buyer or your worker or another stakeholder. At Annapurna, each has a vote, nobody can maintain a share price greater than 10000 rupees. Voting alternative stays the identical for anyone. I really feel although India has superficially accepted the democratic precept, however in our coronary heart we nonetheless like dictators, who inform us what to do. I used to be born and purchased up in a democratic ambiance and I really feel that given a alternative each human being will take a clever choice and if in case you have democratic ideas at your coronary heart, you understand that everybody is equal and everyone seems to be entitled to the identical respect. So these are on the very core of Annapurna. Everyone seems to be nicely revered and nobody, regardless of their designation or expertise, is regarded down upon. I actually get upset if I hear something like that. I’ve all the time insisted that I can’t have a closed door cabin. My room will not be air-conditioned as a result of my LSOs are all working within the slum. Even at Annapurna, the primary workplace was in my home and we had an workplace beneath a tin roof and I used to take a seat beneath the tin roof. There may be openness, openness in accepting one another’s choices. In case your aim is ready like I wish to accomplish that a lot turnover, this a lot goal then the aim will get diluted. At Annapurna, there are benchmarks set for every LSO however they resolve their very own targets. These targets are additionally evolving. Due to this fact Possession additionally turns into an vital worth.
Shini: Annapurna Pariwar has a holistic method catering to the wants of girls on the lowest strata of the society. There may be microfinance, there are Day care facilities, and there may be medical insurance, financial savings, working girls hostels, micro insurance coverage, and training scholarships. Are there any future plans?
Dr. Samant: I’ve no future plans, none of this stuff I had deliberate. That is as and when it got here forth. I don’t know if we’ve coated all of the wants, I do know that we’ve coated all of the wants expressed by our prospects. We’ve got coated most wants which have been doable. A few of the wants have been additionally like, you’re taking us to a pilgrimage. We stated we’ve given you sufficient confidence now you may go forward and manage a bunch of fifty. We’ve got not addressed these wants that may very well be addressed by them on their very own. Virtually talking, I’ve no plans for the long run. However I have no idea what want may come up of their conditions sooner or later. I solely know that I’ve created a conducive surroundings the place we hearken to our prospects once they specific one thing. I settle for that this surroundings was institutionalized, programs and construction, have been put in place by me, we did create channels of communication from high to backside. For members there are group conferences, group consultant conferences, AGM, Board Conferences the place there are buyer illustration. We harnessed the tradition of listening. We listened. We pay attention very fastidiously. Even once they (prospects) are usually not saying something, they’re saying one thing. Even your knowledge and figures inform you {that a} explicit scheme that members are usually not appreciating or shifting away from. I actually have no idea what I or the group will do tomorrow. Like Mahatma Gandhi stated, “If I say one thing about any subject right this moment and the identical subject 4 years later, you need to contemplate the latter one to be appropriate.” I simply throw mild on issues; it’s not a plan for the long run. It’s what the shoppers say and what the information has to say. I don’t know what my members will say tomorrow. Whether it is doable, we’ve sufficient sources we are going to do it. I’m certain even after me I’ve created sufficient pool inside that they may proceed to hearken to the shoppers actively and take choices collectively in a democratic method which is able to assist the poor.
Shini: Ladies’s day across the nook, do you’ve any message for the ladies?
Dr. Samant: To be sincere, Ladies’s day has grow to be only a tokenism. I really feel very unhappy about it. I don’t really feel like celebrating it anymore. My mom began Annapurna within the yr which was celebrated as a world girls’s yr on the ladies’s day. eighth March 1975. Many individuals don’t even know the background of Ladies’s day. It began in USA, when a bunch of girls working as tailors demanded equal rights, work hours and stuck wage. Then it slowly percolated to Germany. However right this moment it has taken a unique that means. Daily in society needs to be everybody’s day. Daily we must always look after males, girls, kids, senior residents, animals and surroundings. It’s a world the place everybody ought to peacefully coexist. All of us want one another and it’s also important for the ecosystem. There needs to be an egalitarian society the place everyone seems to be fortunately dwelling. I really feel that every single day, all three hundred and sixty five days, needs to be this fashion. Although a lady is the central level and the connecting dot however everybody within the household also needs to be pleased.
Submit Script from Jolly Zachariah, Chief Working Officer, West Area, Ujjivan
Regardless of 20 plus years of worldwide banking expertise I used to be a novice to Microfinance again in 2008. I used to be entrusted with the startup of the Ujjivan enterprise within the Western India. Samit e-introduced me to Dr. Medha Purao Samant, a extensively acclaimed livelihood practitioner and pioneer in bringing Microfinance to the slums of Mumbai and Pune. It’s been 7 years because the first assembly with Dr. Medha Samant, for me a memorable one. Armed with many questions, and a way of uncertainty about what I had got down to obtain I visited the Annapurna workplace at Warje, Pune for my scheduled assembly. I couldn’t assume something in my effort to attempt to perceive as a lot as doable in regards to the buyer section Ujjivan was dedicated to serve. Personally, I knew little in regards to the section and even much less in regards to the challenges that I used to be more likely to face on this endeavor I had dedicated myself to. Dr. Medha assiduously answered every of my questions and as an earnest scholar, I imbibed all of the data from her experiences, realizing how worthwhile every of her sharing was. She had me to talk along with her colleagues who shared their processes and experiences with me freely.
My subsequent assembly with Dr. Samant was once I was invited to talk with a bunch of NGO MFI practitioners in Pune. Ujjivan at the moment had a small presence in Pune with a number of branches. It was enriching experiences for me to satisfy and interact a bunch of enthusiastic professionals dedicated to the reason for working for the underprivileged. It additionally was my first view to the range of thought amongst practitioners who served the underprivileged on what is likely to be the very best various. My discussions with Dr Medha helped me respect that fixing a difficulty as massive as that of ‘poverty alleviation’ required many fashions to be explored concurrently. I’m in debt to Dr.Medha Samant for serving to me contextualize a few of my early ideas on a buyer section I had restricted insights on, and freely sharing from her many experiences.
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