In 2008, four women from Tukla village located in the Khariar block of Nuapada district, one of the poorest districts of India, stepped out and decided to build a secure future for their families with their contributions. They formed a group named Omm Santi to avail credit from Mahashakti Foundation for development of their existing business. Purnimadei is the one standing second from the right with her hand raised in the photo. She is 45 years old and lives with her husband and two sons, 27 and 25 years of age, who help in her business. Purnimadei hails from a traditional cloth weaving community. For the last 40 years, she has been running a cloth weaving business with her husband. Now she has two hand looms for weaving saris. Her husband purchases the yarn/thread from trader in a village that is 20 km away. They prepare 80 to 100 pieces from a bundle of yarn, which costs around 10,000-15,000 rupees. Purnimadei does the initial processing of the yarn to make it ready for weaving and after that, her husband and sons fit it to the hand loom and weave the sari. They only weave saris because of the demand in the market. Her family works around 8-10 hours a day and weaves one piece of sari from each hand loom. Purnimadei sells her products to the local traders on a weekly basis. She earns a monthly income of Rs.6,000, which is not sufficient to maintain her family. With the loan, she wants to buy a thread/yarn in bulk. Purchasing more stock at a time will help her to reduce the purchasing & transportation costs of the raw materials. Purnimadei wishes to grow her business and save enough to complete the construction of her half-constructed house.
Santidei, Padmabati and Somatuladei are the other members of the group and they also have cloth weaving businesses.
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 loan
Due 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.