During a hot summer afternoon of 1997, when most of the women would prefer a siesta,The Founder and Managing Director – Spandana , Mrs. Padmaja Reddy, saw a rag-picker woman on the street buying household reject items on a push cart. Her dedication and entrepreneurship made Ms. Reddy curious. Speaking to her, our team realized that the lady was working very hard but not getting commensurate returns. Despite her dedication and efforts, she succeeded in providing only one meal to her family.
This was mainly because the lady was paying an exploitative daily rent for the cart that cumulatively far exceeded the cost of buying scores of such carts. The lack of access to affordable and serviceable capital was leaving little alternative options for her. While a bank would never provide credit to her for many reasons, the money-lender was far too unfair. That’s the time we decided to lend her money, enough to buy a cart. The money was given with a promise of timely and reasonable repayments.
The hard working woman started using her new self-owned push cart; she could save on the rent cost and repaid the money conveniently from her increased returns. Now this woman could afford better living for herself and her children. Thus the word of mouth did all the marketing for us. It seemed to strike the right chord with several low-income people, and soon there were many waiting to meet Spandana team at their doorstep. It is but seldom that an everyday experience is so profound and timely that it stirs in a person the courage to set things right.
This success story is from Kodua Bareni, Orissa; Namita and Rita Mangraj, the two women from the same family had an idea brimming in their minds. Their husbands were working as a collection agent in a private firm and a bus conductor. They wanted to start a poultry farm to improve their standard of living. They tried taking loans from banks but to no success.
Namita and Rita Mangraj
They took the first loan of Rs.15000/- and established a poultry farm with 50 – 80 hens this number was fair enough to start. With the 2nd and 3rd loan cycle they did pretty well in maintaining the business and with a good growth the number of hens increased to 500 – 640.
With the increase in income and better lifestyle the family expenses also amplified but with no investment at this point the business became stagnant. They approached Spandana again and realising the potential in their business Spandana agreed to give them another loan.
Looking at their growth Spandana offered them larger amounts of loans each and every year. Spandana has helped them continuously six times, with the amount they needed and will be continuing to do so. Their hard work and our financial support helped establish a great successful poultry farm in their village and now stands with 1100 and 2000 hens. The current running loan amount is Rs. 36000/- and is sure to increase the amount in future looking at their dedication towards their business and their faultless centre meetings.
Now they have become self-sufficient and their standard of living has increased to a great extent and they have nothing but words of praise to offer to our company whenever they meet us and are also spreading a positive word of mouth to the other people they meet if and when they require loans for their ventures. They have set an example in their society of utilizing the funds effectively and are source of inspiration for many in the village.
This Success story is from Banki in Orissa; Mamta Behare belonged to below the poverty line family. When Mamta heard about Spadana and was introduced to the team, her family was in debt of Rs 10,000/- with no source of income. The family was in a grave situation with no hope for the betterment of their life.
The Member Working in her Farm
To generate some source of income, she approached the Bank for a loan, but as expected it was an outright reject with a reason that she did not have anything to mortgage. After this rejection she heard about Spandana through some common source in her area.
She approached Spandana, and looking at her determination and zeal of earning. She was sanctioned a loan of Rs 10,000. That was all she needed to start something of her own, with the financial support from Spandana made she bought a cow and started the business of selling milk. Her family got in the business with her and they started earning profits but to grow that business they needed more investment. Spandana again helped her by giving her a loan of Rs 14000, with which she further owned two more cows.
Increase in Family’s earning allowed her to clear the debt of Rs 10,000. With the same profit she further invested in her business and purchased 2 Calves. With the new addition to her Business she started selling milk products like Cottage Cheese (Paneer) and Butter. Looking at her hard work and her business growth we again helped her with a loan of Rs 24000/-.
Wider View of Cattle Farm
With her new investment and hard work her dreams for growing the business came true. We helped her further with a sum of Rs 30000 and saw her dream growing and flourishing.
Present day she has a total of 18 Cows & 6 Calves in her dairy, which lead to a vast increase in family income. This improved her standard of living to a great extent. She has set an example in her society that how a woman in debt can take things in her own hands by becoming an Entrepreneur and through optimum utilisation of funds can reach new heights in financial success.
She believes, she succeeded only because of Spandana’s help at the right time. She says – “I have neither taken Loan from any other MFI, nor I am willing to but I will continue to do so from this company because of this i have become what I am today.(Spandana)”