Our Micro-Credit Program

Mikrokreditbericht (Januar 2005) (in German, pdf)


Proud Dalit women with pigs she bought with a micro credit from DWP. Before she started breeding pigs, she was very poor and used to hide out of shame. Now she is very proud of her flock of pigs and a committed member of DWP!



The present priority of DWP is to strengthen the women's micro-banking enterprise through a resource fund. Dalit families desprately seek ways to escape from the clutches of money-lenders and to overcome dehumanising poverty. DWP's micro credit services enable Dalit communities to gain economic strength through productive activity. Such models of alternative economics are of great relevance in a global economy controlled by the corporate world. The micro-credit loans function at three levels:

Micro-credit groups
10-14 women decide to form a micro-credit group in a village. They meet monthly or bi-monthly and each woman pays Rs 20 - Rs.30 per month into the group's bank account. Members of the group decide who can take out a loan from that fund. Interest rates are 2-3% per month. Groups who have succesfully functioned for a year, gets a one-time stipend of Rs.1000 for their group account from DWP. Currently there are about 130 micro-credit groups active in DWP.

Bank loans
The commercial banks give bigger loans to the women on recommendation of DWP. But the process is complicated and the women do not see why the banks should gain interest through such transaction. DWP therefore no longer uses bank loans.

DWP-Resource Fund
Two to three times a year, loans are distributed to about 30 women out of the organisations resource fund. Each woman takes a loan of Rs. 1000 (approx. $23) at a 1% interest rate per month. The repayment rate is 95%

The loans are used for a range of small enterprises, for example, shops in the villages or livestock, usually pigs or goats.

  Daughter of a women who started a small shop with the help of a micro credit from DWP.

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