Empowering women, transforming communities: AVAG's loan initiative

In the villages around Auroville, where women's lives are penned within the confines of financial constraints and societal norms, a captivating female-centric movement has begun to blossom. Under the leadership of AVAG, women from diverse backgrounds have been empowered by AVAG facilitating their access to low-interest loans through a network of women’s federations, women’s groups, and bank linkages.

Malini from Kazhuperumpakkam village was the driving force in bringing together 16 women from her neighbourhood to form their own Udhayam Senthuram Women's Club. She came to AVAG asking for a loan of Rs. 635,000 for three club members, for education, housing and business purposes. Much like the others, her own past was marked by financial hardships. "I had borrowed a huge loan from the bank and was not able to pay the monthly installments," she confides. AVAG granted the loan at a low interest of 1.5%, without the need for collateral. Malini emphasises the change it brought to her family dynamic. "Without AVAG's intervention, I'd have been shackled by interest rates as high as 18% compounded monthly, coupled with rigid repayment plans that would have been impossible for us to repay. With AVAG, it became possible for us to not only apply for three loans, but to pay them back due to the flexible repayment system! Now, I'm an active participant in my family's financial discussions, and they trust my ability to safeguard their financial well-being. "

Like Malini, many other women led lives confined to their remote villages. In the lush, fertile expanses of Uppuvellore, where the vibrant cultivation of watermelon and paddy flourish, for someone like Manjula the demand for financial resources takes centre stage, particularly during the crucial agricultural seasons. Additionally, her family had built a temporary shelter for themselves on government land with constant fear and lack of stability. Reluctant and discouraged by her circumstances, she decided to create the Udhayam Bharathamatha Women’s Club and take a chance with AVAG.

Manjula explains, "Women come together in groups organised by their locality. Each group comprises up to 20 women. Anyone with the desire to join these groups is welcome." Her group applied for a total loan of Rs.325,000, mainly for education and family functions, which was sanctioned the day of application. Her women's group operates with a set of rules and regulations, but there's a sense of flexibility too. Loan decisions are made considering the repayment schedule and the track record of timely repayments of previous outstanding loans.

The depth of AVAG's impact is exemplified by the journey of Parmeshwari Murugan from TC Kootroad. “My club, Udhayam Senthuram, was formed back in June 2007. Financially, my family faced significant hardships, struggling to make ends meet with earnings that barely covered the essentials like clothing and food," she says. With AVAG's support, she and seven other members from her group applied for low-interest loans for higher education, house construction of homes, and renovation of shops. She witnessed her dream of a permanent home in her native village becoming a reality. AVAG's holistic approach, which encompasses regular meetings, financial planning and empowerment initiatives, alongside swift loan approvals, served as the bedrock of her transformation. "I received the necessary investment every year, and now I am the proud owner of my own house. I couldn't be happier about it." Parmeshwari, like countless other women, is now living a life unshackled by financial constraints and has even sent her daughter for higher studies.

These stories are not just tales of financial support; they are narratives of knowledge, independence and resilience. AVAG's work is a testament to the transformative power of collective effort where, as these women flourish, their communities thrive as well.