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Concept, Purpose, and Impact

CONCEPT

Nano Finance - It is all about giving small interest free loans up to 500 rupees (about 12 dollars) for one year to the women for their emergency needs for food, healthcare, education, small trading, and for daily livelihood.

 PURPOSE
 
 Not to be the victims of the moneylenders at the time of emergency.
Example: A woman takes a loan of Rs 500 (about $12) from a moneylender for her son’s medical need. She pays 50 rupees every month towards the interest until she pays back the entire 500 rupees principal (in one time). The total household income (both husband and wife) is about Rs 2000. She will never pay back the amount unless she has some extra income. If there is another such emergency need, she has to take another similar loan. It is a vicious circle and most of the time; the poorest of the poor are the victims of such trap and never come out of it. In extreme emergency situation, the interest rate can go up to 320% per year. 
 Interest free loan for one year provides women enough time to pay back the loan comfortably.
Example: The women  have the  freedom of  paying back the loan in installments within a year. A woman took her first loan of 500 rupees to start her small business. She had paid back the interest free loan in one year and taken another loan to expand her business.  
 Provides women with a secure feeling in desperate situation, in case of emergency.
Example: A woman was suffering from Malaria and was hospitalized with a serious condition. The family needed money for her treatment and did not have any savings. The family had the only option to go to the moneylender at any cost. The mother-in-law came to our center and took a loan for the treatment.
It is a tremendous comfort for the women to know that there is money available for emergency need instead of going to the moneylender who can reject their request or give loan with a high interest rate. 
 The purpose is not to make the women rich but to help them when they are in desperate need for health care, children’s education, and other unavoidable circumstances.
Example: We give maximum loan amount of 1000 rupees with a few exceptions. The amount is not going to make them rich. But, it will help them not to be poorer, help them to educate their children at a minimum level, help them to provide minimum health care, and bring food to the family when there is no other choice, and stop them from going to the moneylenders. 
Using  their money to help other women in need
Example: The returned money is used to give loan to other women who are in similar situation like them. The initial invested loan amount of Rs 4, 00,300 has reached to Rs 10, 00,000 (in one year).  
Provide loan with dignity and return the amount in time without any forceful action.
Example: The women come to the center, express their needs and take loan by giving minimum information, without going through extensive paper work. We don't force them to pay but encourage them to pay some amount every month, so that at the end of the year it is not a big burden on them to return the loan. After one year, we do remind them frequently. 
The trust (Biswas) is the key factor of the success of the Nano Finance concept.
It is all about trust. Unless, they return the first loan, they can’t get another loan even in emergency. In fact, the women themselves are responsible for the success of the Nano Finance project and the establishment of Aamara Biswas.
Helping Women with limited resources through Nano Finance concept.
One can help women with limited funds from a distance with minimum supervision and administrative cost and without any help from a local organization. Instead of giving money and helping one person, one can help many by recycling the same amount. 
IMPACT
Aamara Biswas has created a different revolution in the social life of the women who are at the bottom of the financial status in the society. At the beginning it was beyond their imagination to get loan without interest and much paper work. It took them some months to realize that Aamara Biswas was their organization and it only could sustain by their effort and trust. It is heart warming to see how 500 rupees can bring changes to so many women at different age groups.
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