In India, over 260 million live in poverty. The poor are plagued by high levels of unemployment, low levels of income, and significant debt. Many are trapped in this financial position. They rarely can offer collateral against their loans and therefore are continually denied access to formal credit institutions. Even when loans are awarded, high interest rates and unrealistic repayment schedules leave families unable to escape the poverty cycle.

In Rajasthan a significant number of families are forced to repay intergenerational debt. Mining is a common family occupation and, in this type of bonded labor, debt is passed down through successive generations. Additionally, many in Rajasthan have experienced chronic difficulty with underemployment and low levels of income. Tens of thousands of families struggle to rise above the poverty line, but lack the essential financial resources to meet even their most basic needs.

Approximately one thousand Indian NGOs have emerged to help the poor acquire loans and increase their assets. Many of these organizations focus on supporting women because, historically, the voice of women in financial and decision-making positions has been marginalized and/or ignored.

FSD partners with locally run organizations in Udaipur and Jodhpur who work with women to create financial "self-help groups." These groups enable women to build savings and credit, and form linkages with banks. The organizations also coordinate meetings to encourage women to participate in management level activities and provide workshops that focus on skills training. Microentrerprises arise from these trainings.

FSD also supports programs that educate the poor about local bank policies and works to establish revolving funds for those in need. With continuing help and financial support, these microenterprise/microfinance NGOs can empower the poor through education, training, and micro-loans that will drastically improve their financial possibilities.

Read more about Microfinance & Microenterprise programs and opportunities initiated by our Community Partners in India.

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