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“1 0 0 S E E D S”

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MICRO FINANCE PROGRAM

Program implemented by

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DelhiDelhi

Program Location • North-East District-

Delhi • Touches Neighboring

State (Uttar Pradesh border)

• Contiguous Slum Clusters – Sonia Vihar – Rajiv Nagar

Sonia ViharSonia Vihar

Rajiv NagarRajiv Nagar

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The rural poor come to Delhi (and cities like it) because jobs are available that pay double (in cash) what they can make in the villages. Delhi is a prosperous city with a huge gender gap (835 women per 1,000 men) and a magnet for poor migrants.Delhi, being the capital of India and a growing city, has attracted settlers from almost all corners of the country and is now home to as many as 7 million persons living in slums, 45% of whom live in unauthorized urban villages or slum colonies, Jhuggi Jhompris (JJ). Sonia Vihar and Rajiv Nagar are two such adjacent slum colonies, housing upwards of 200,000 people and still growing.

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Delhi witnesses a net addition of around 600,000 settlers every year, over a 1,500 per day, who come in search of better jobs.

They crowd into low-cost, illegal slums with very high population densities, over two to three times the density of inner city urban America.

These unauthorized colonies and slums are poor areas, lacking basic facilities and civic amenities like access to clean water and garbage disposal trenches. As a result, 100 children out of every 1,000 die before the age of 5. Young people turn to crime instead of getting training and good jobs. And strife abounds.

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A lack of capital means that people can’t dream of starting or growing even the smallest businesses. Lack of knowledge of financial procedures, as well as useful vocational skills, also hampers local economic progress.

We expect the “100 Seeds” program to be a first step in a multi year initiative to benefit those in extreme poverty in the area already served by PRW funding as well as to dramatically increase HOPE worldwide’s micro-finance activity country-wide. We believe that this program can deliver a huge impact.

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PROGRAM GOAL

• Microfinance 100 businesses in Sonia Vihar and Rajiv Nagar, and create a revolving fund to repeat this annually.

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PROGRAM IMPLEMENTATION

TARGET POPULATIONResidents of Sonia Vihar & Rajiv Nagar

Invite applications for loans

Sort out mostviable applications

Check documents andaddress proof

Physical verificationof loan applicants

with neigbours

Interview of loan applicants along

with two guarantors

Refer the loan applicants to the Community Based

Organizations (CBO) like RWA or Mohallah Sudhar Committee

for their approval

Approved applicants by the CBO’s are refferedto the management for

loan disbursal

Loan cheques are givento the applicants and

post dated cheques are collected for repayment

Repayment cheques & cash are deposited

in the bank monthly.

Periodic visitis carried

out to makesure that

their businessis doing well

Case studiesare done for

all the applicants

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PROCESS OF INVITING APPLICATIONS

• By putting notices at PUHC, Health post and prominent places.

• By advertising on Cable TV.• By word of mouth.• Local survey to ascertain needs of the

community and inform them about the microfinance program.

• Informing the community through our field workers.

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SORTING OF APPLICATIONS

• Applications are treated on first come first serve basis.

• Applications should have residential proof like ration card, voter ID card or electricity bill and photo identity proof like driving license, PAN card, ration card or voter ID card.

• The viable applications are short listed for interviews.

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INTERVIEW OF LOAN APPLICANTS

• Interview with the applicants are done to ascertain their plans for business and to find if they are genuine or not.

• The guarantors are interviewed to find out if they know the applicants and to get the surety from them that they will repay the loan in case the applicant fails to do so.

• Interview process helps to find out the genuine loan applicants.

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RECOMMENDATION FROM RWA/MOHALLAH SUDHAR COMMITTEE

• The loan applicants list who have been successful in the interview is been forwarded to the RWA/‘Mohallah Sudhar Committee’ (MSC) for their recommendation.

• The applicants are verified and recommended by the RWA/MSC for loan.

• The recommended loan applicants are referred to the HOPE foundation management for loan disbursal.

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LOAN DISBURSAL & REPAYMENT

• The recommended applicants are given a cheque for the loan amount (Rs 6000/- each) for their business.

• The applicants are required to give post dated cheques for the repayment of their loans.

• The applicants are given a passbook in case they want to repay the loan by cash.

• The loan applicants sign a legal agreement with HOPE foundation regarding the loan request and the repayment.

• The cash is collected every month and the same is recorded in the ledger and the passbook. The cheques are also deposited in the bank and the same is entered in the ledger.

14Ajay explaining the community members about microfinance program

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Ajay explaining the microfinance program to the women in

the community.

16COLLABORATION MEETING WITH RWA RAJIV NAGAR

17COLLABORATION MEETING WITH MOHALLAH SUDHAR COMMITTEE, SONIA VIHAR

18RAJ KUMAR BEING INTERVIEWED FOR TRANSFORMER

MANUFACTURING BUSINESS

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RAJ KUMAR (TRANSFORMER MAKING BUSINESS)

Rajkumar came to Delhi from Uttar Pradesh as his father came to Delhi in search of a job. Rajkumar got married and he has 2 daughters. He used to work for an electronics company and he was paid a very low salary. After having kids he was not able to support his family and as a result he decided to quit his job and work from home. He used to get raw materials for transformers from the shop and he has to wind coil around them and earn money to support his family.

Few months back he became sick and he finished all his savings and he was not able to purchase raw materials for the transformer. He was very discouraged and he was unable to raise some capital to restart his business. Rajkumar was very happy when he received a loan of Rs 6000/- to restart his business.

He was not earning anything but now he is earning Rs. 130/- per day making transformers, and he has started repaying his loan. He is grateful to HOPE foundation as it has brought hope his life.

20Rajkumar making transformers

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HEMLATA RECEIVING CHEQUE FOR STARTING SEWING BUSINESS

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HEMLATA WITH HER NEW SEWING MACHINE

She is able to earn an extra income of Rs 80 – Rs 100 per day with her new business

23SANJAY RECEIVING CHEQUE FOR EXPANDING HIS ELECTRICAL BUSINESS

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Sanjay Kumar came to Delhi in search of job fifteen years back from Meerut, Uttar Pradesh. He was unable to find a suitable job so he decided to get trained as an electrician. He got training from an institute in Mawana, Uttar Pradesh, North India. He rented a small room and set up a small shop in Sonia Vihar and started working as an electrician. He got married and he has 3 children. He stays with his family and parents in a small house and takes care of them.

Sanjay was very happy to know that HOPE foundation is providing loan to deserving and needy people in the community. He was very happy to be selected as a successful candidate for receiving the loan. He was provided with a loan of Rs 6000/- so that he can expand his work. He has purchased and stocked items like electric bulbs, fans and other household appliances so that he can earn better and take care of his family in a better way.

At present he earns about Rs 8000/- per month. The loan is helping him to earn an extra amount of Rs 1000/- per month.

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SANJAY AT HIS ELECTRICAL SHOP

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RAHUL AT HIS STATIONERY AND GIFT CENTRE

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RAHUL SHARMA (STATIONARY SHOP)

Rahula Sharma came to Delhi from Moradabad, Uttar Pradesh in search of a job. He used to work for a company and he was paid very low salary. He worked there for some years as he was not able to get any other job. He was helping his brother in law in his tent business. His brother in law was supporting him and taking care of his family as well as they were staying together as a joint family. He had to depend on his brother in law for everything and he was not able to support his family properly.

He was unemployed for few months and then he started a stationary and gift shop by loan amount which he received from HOPE foundation. Now he has a regular income from his shop. He used the loan amount and buy stationary and gift items for the shop and his shop is running well and now he is earning Rs. 70-100 more per day with the help of the loan. Now he is able to support to his family and more confident about life. He gives thanks to HOPE foundation he received help and gave him support.

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Pratap Chand at his vegetable shop

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Pratap Chand is from Delhi and he is staying in Sonia Vihar since 1992. He used to work in a private company and he retired from his work in 2002. He is now dependant on the small pension and a small vegetable shop. He was very happy to know about the Microcredit loan being given to the residents of Sonia Vihar and Rajiv Nagar. He applied for the same and he was extremely happy to be the recipient of the loan.

After receiving the loan he has expanded his business and he has stocked more items to be sold in his shop. He had brought more vegetables for his shop. Now he has extra vegetables to sell and now he is very happy and grateful for the loan he has received.Before taking loan he was earning Rs. 60-70/- per day but after receiving the loan he is earning 90-100/- per day.

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MAHENDRA AND SEEMA RECEIVING LOAN FOR REPAIRING BULLOCK CART

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MAHENDRA AND SEEMA (BULLOCK CART)

Mahendra is working as a security guard at our facility in Sonia Vihar during the night. He has a bullock cart so that he can collect sand from the banks of river Yamuna and sell it in the community during the daytime. His wife Seema is a housewife and she used to take care of cattle and sell the milk to support the family.

Few months back they were very unhappy as someone poisoned their buffaloes and most of them died. They were very sad about the loss of the cattle. To add to his misery his bullock cart broke and he was very sad as he was not having enough money to repair it. He was very sad that things were not going well with him.

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He was very happy to know that HOPE foundation is planning to provide loans to the needy people in the community. He approached us for a loan so that he can repair his bullock cart and earn well for his family. We provided a loan of Rs 12000/- to him and his wife so that they can repair their bullock cart and take care of the family. With the help of the loan they were able to repair the bullock cart and Mahendra started earning well for his family. He dreams to save money and purchase more cattle and take care of his family.

He is able to earn about Rs 150 to Rs 250 more every day with the help of his bullock cart as a result of receiving the loan. He is very happy that he is able to take care of his wife and kids properly.

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MAHENDRA WITH HIS BULLOCK CART

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• No of loans processed = 100

• No of people who have started repaying the loan = 80

• 20 more people will start repaying from next month onwards.

PROGRAM UPDATE – APRIL 2009

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THANK YOU

HELP US TO HELP MANY PEOPLE