Surya is running a bag stitching business from empty cement bags with the help of her husband for the last 10 years. Now she has two sewing machines for stitching bags. The process of her business is that her husband moves from place to place to contact different builders and contractors for collection of empty cement bags which cost Rs.2/- per piece. At home Surya washes and dries the bags. Then her husband cuts up the cement bags and stitches small bags with his son and daughter. At leisure times Surya also helps in stitching bags.
Along with her family, Surya works at sewing 8 hours per day and stitches 300 bags in two days. Her husband supplies this product in the local wholesale market thrice in a week. As per the calculation of Surya, she gets a net profit of Rs.3-5 per bag. Apart from stitching bags she also procures ready-made bags of some better quality from other areas to add to her income.
In this process, during last three years, Surya has been able to become the proud owner of some important assets like a bike, a sewing machine, and a cooler for her family. All these assets have helped Surya directly to increase the output of her business to a greater extent. Apart from this she has also been able to marry off her elder daughter in a respectable family.
Surya wants to invest a portion of this loan to buy another sewing machine to increase the volume of her business. The rest of the loan will be utilized to buy a bulk amount of empty cement bags, so that she can work for a longer period without any interruption.
Regarding her future hopes Surya wants to create some assets like a TV, a fridge, a cooler etc. out of her income for the marriage of her younger daughter. She also desires to donate a sewing machine to her elder daughter as her daughter intends to run a similar business for her financial sustainability.
The other three members of her group Rajani, Golapi and Phulmati also run different businesses: Computer/photocopy/photo studio, vegetable vending and a cloth business respectively.
More information about this loan
Mahashakti Foundation focuses its work in some of the most underdeveloped districts in Odisha, characterized by poor infrastructure and high levels of poverty. By supporting this loan, you are enabling access to finance for women living in some of India's poorest and most remote areas.
Important note about this loanDue to Indian government regulations, if you fund this loan, you will not be repaid for at least 3 years. This borrower will likely repay your loan much sooner than that, in which case, the Field Partner may re-loan your funds to help other local borrowers. We want you to be aware of this minimum 3-year waiting period and the associated risks before making a loan to Indian borrowers on Kiva. Learn More >
About Mahashakti Foundation
Mahashakti Foundation is a public charitable trust that provides microfinance and development services in the low-income state of Odisha. Operating in the poorest region of India, the organization strives to serve rural communities, tribal groups and others living on less than USD$1 a day. In addition to microcredit, it also provides micro-savings and micro-insurance products, as well as business development, health, water and sanitation, and food security services.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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