Factores que influyen en las relaciones humanas

Women’s groups were originally formed to increase women’s socio-economic wealth by various methods. Nevertheless, in the end the main reason for women to join and stay in these groups was the possibility to get a loan with the low interest rates. Still there are also other reasons why women have joined women’s groups.

Many women said that they joined the group because of the saving component. Being part of a women’s group it is possible for women to have their own savings and also to become more self-sufficient. Some women said that they joined the group because they wanted to learn new things and also to have some technical assistance, for example in farming and animal husbandry. For many women it was also important that they could get help if they happened to be in situations where they needed something. Social aspects, friends and women’s co-operation were also mentioned. One woman said that women should work together because that makes them stronger and that way they can have more power over things – that was the reason for her to be a part of a group.

7.4.1. Saving money

Women started saving money when they joined the group. The amount saved per month depends on the group. Group members decide together the amount of the savings per month. According to the LEAP field workers monthly savings in

Devichaur differ from 20 to 100 rupees (0.2-1 Euro) (APPENDIX 2.). If one woman is involved in more than one group they have to save separately for each and every group.

Saving money is one of the main functions of the groups. It is also an essential element in the group’s future and sustainability; through saving money a sense of ownership, continuity and pride are created and these can foster the group’s existence.

Savings are collected during monthly meetings. LEAP field workers keep the records of every group’s savings but the money is entrusted to a treasurer selected from among the group members (Fig 14.). Then the savings are lent forward within the group. Loans can also be taken from the LEAP special microfinance fund with low interest.

Fig 14. LEAP field mobilizer Bimala Bajgain counting monthly savings collected in women’s group meeting at ward number 9.

LEAP field workers also said that the loans taken from the groups are mainly for household purposes and not for IGA. On the contrary loans from the LEAP microfinance fund are targeted to IGAs and loans are always given in kind, not in cash. Interestingly though, field workers mentioned that in many cases loans taken for household purposes are in fact used for alcohol production. This purpose was not mentioned in the interviews. When I asked why the women did not mention alcohol production field workers explained that alcohol production is something that people do not like to talk about in public.

Women’s expectations towards women’s groups were hopeful. For most of the women the objective was to get a loan and be able to cover household expenses more easily. Also women wanted to start their own businesses, become

entrepreneurs and increase their income level. Women expected also some edification through self-sufficiency. They also wanted to get education in literacy and some business assistance.

7.4.3. Loan granting and payback

All interviewees said that it was very easy to get the loan within the group. I asked if the women knew any cases where a loan was not granted. Nobody of knew one. There were cases where the applicant had to wait some time to get a loan, but eventually she got it. Formally the group did consider whether the loan should be granted or not but in practice nobody was denied. So everyone who wanted a loan was granted one without collateral and with no group guarantee.

Women’s group loans are usually small in amount and loan installments are agreed when the loan is granted. The loan is repaid on a monthly basis. The payback period differs according to the amount from 1 to 6 months.

7.4.4. Other financial opportunities

Almost all of the women interviewed had taken another loan from some other organisation or from some other women’s group. I asked if the women knew any other financial opportunities. Some said they did not but others said that they knew official banks and also some rich people from whom they could borrow some money for very high interest. One woman said that she had been taking a loan for 100,000 rupees from a wealthy person for buffalo farming. The interest was 24 percent. She took also another loan for 50,000 rupees from her father for 15 percent interest. Both of these loans were taken 14 years ago and she was still paying them back. This is clear evidence of the fact that borrowing money from private lenders in many cases leads to a debt cycle from which it is very hard to escape. Therefore women’s groups are the most attractive places for poor women to take loans.