Thoughts on Microcredit


Microcredit is the extension of small loans to entrepreneurs, too poor to qualify for traditional bank loans. In developing countries especially, microcredit enables very poor people to engage in self-employment projects that generate income. Many people are desperately looking forward to getting money to kick start their lives. It is unfortunate to know that larger banks are not yet willing to lend money to microfinance institutions. As a result, the credit demand in developing countries such as India remains unfulfilled.

The interesting ways in which the borrowers can improve their lives include intervention in education, healthcare, safe drinking water, handicrafts, and fashion technology amongst others.

A woman who was literally abandoned by her family said, 的 realized that what I make of my life was up to me. I began to ask fundamental questions, "What is this notion of happiness? How do I create fulfillment? What is the purpose of life?" She managed a small loan and started distribution of packaged drinking water. She looked at some simple, low cost water purifiers which, when deployed, cut down the healthcare costs. The quality of water is notoriously bad in urban and suburban India and is one of the major causes of diseases. Identifying this area helped her to live a life of dignity on her own terms.

Another lady, 25 years old, who passed through a premature midlife crisis, was nearly shattered when her husband deserted her in the small town where they lived. She was a graduate and decided to pursue a career in teaching. She hired a small room and set up a tuition centre with the loan she got from a microfinance company. But this did not really satisfy her. She was confused about what was next. The suggestions she received from friends only exacerbated the confusion. She didn't know where to turn for answers and so she started to pray for guidance. It came in the form of self-help group. She is now a member of the group engaged in making packaged food items for households and earns upwards of US $150 every month.

When a factory worker lost his job due to closure of the plant, he was stunned. The nearest civilized town was nearly 70 kms away and he knew that it may be impossible to survive there with his wife and two children for more than two month with his savings. He, and his five other co-workers who were in similar plight, received three clear messages. From what divine source, I am not really sure, but it answered their questions. The first stated, "You are all catalysts for discovery." The second said, "You will work in growth and development." The third came through loud and clear, "You have a gift for working with people." This made them form a team and relocate in the town, get a microcredit and establish a vehicle repair and maintenance facility. This was in line with their earlier vocation. Five years later, the team is counting its blessings and the members are now employers themselves!

These stories bring out one common factor that is needed for those in search of microcredit. That is: "I am a catalytic agent who works with people in their growth and development."

Such messages must be given on a regular basis to those who are in need of a vocation. Rotary must hold several such seminars, help people in inner negotiation and self-esteem. When people also start coming to Rotary to learn how to find their own inner answers, then the true purpose of vocational service will be accomplished.

We are all enrolled in a full-time informal school called "life." Each day in this school we will have the opportunity to learn lessons. You may like the lessons or hate them, but you have designed them as part of your curriculum. Those in need of microcredit to start a vocation must realise this. Why are you here? What is your purpose? In the course of this endless search, there is no one answer. The meaning of life is different for every individual. The concept of microcredit is to give a meaning to those who are groping in the dark. It has a deep human element attached to it. Removal of poverty and dignity of a human life is linked to every aspect of the microcredit programme. Hence Microcredit must be marketed like any other commodity. It can remove poverty earlier than what planning commissions in developing countries predict.

As the people who have taken a bold step to be on their own travel through their lifetime, they may encounter challenging lessons that others don't have to face, while others spend years struggling with challenges that these people don't need to deal with. 

If Rotary can make people living below the poverty line to rise to this challenge, it can unravel the mystery of their lives and actually help them live it. Microcredit can help people to cease being a victim of fate or circumstance and become empowered. They will know that life no longer just "happens to them." 

When Rotary starts working toward fulfilling the true purpose of vocational service, then the real significance of microcredit can be felt by every Rotarian who wants to eliminate hunger. This process may not be easy, but the rewards are well worth the struggle.