From Child Labour to College: Support Her Future

Savita has lived in Smanapur Village, rural Maharashtra,  with her husband, son (15) and daughter (12) for the last 13 years. The family had no secure source of income at all and both Savita and her husband were forced into day-labouring to make ends meet.

Day-labouring has no security at all, and wages are unpredictable. With fixed costs like rent, they found that they had to sometimes cut expenses on food and schooling.

Savita joined the local SHG, which charges a monthly fee of Rs 100 (about £1.15) – a significant commitment for her. SHGs often charge a small fee for membership because experience shows that women are much more likely to drop out if they are not asked to make a financial commitment, however small. Charging fees makes members see the value and stay engaged.

Savita received income generation training through the SHG and became inspired to start her own enterprise. She took a small loan from the SHG and used it to start a small shop, buying groceries and selling them from her home. Over time, her enterprise grew and she took another small loan so that she could increase her stock. This allowed her to pay off both loans and soon she was bringing in steady and secure income for her family.

The SHG trained her in managing her enterprise, and the quality of her record-keeping and management meant that she was able to secure a third loan which meant that she could rent a small shop in the central area of the village with much higher traffic. Soon, she had paid off that loan too, and now her shop is thriving, providing a secure and much higher income for her family. Now she says she can take good care of her children and provide much more support for their studies.