Micro Credit

Poverty is the root cause of several problems faced by people in villages and slums. Poverty is like a vicious cycle, one cannot move out of poverty unless external support is provided to break the cycle. Many poor people want to start their business or expand their small business but without capital, they are not able to do it.

NBJK through its micro credit programme, provide small loan those needy who want money for their business. Promotion of women Self Help Groups and their smooth functioning have made it a successful program.
Micro Credit provides easy and door step service to them. These SHG members are more organized now and their awareness level is amazing. NBJK works with 7,051 women in 7 districts of Jharkhand and Bihar. For men, the program facilitates JLGs (Joint Liability Groups).

Through Micro Credit, NBJK has introduced a transparent and people’s friendly monetary system that reduces practices like land/asset mortgage, advance crop selling and above all reinstated the dignity of women with more stakes in home or outside.

What is the need?

About 50% and 55% of the population of Jharkhand and Bihar and living Below Poverty Line, earning less that Rs.26 ($0.5) per capita per day. Poverty plays as catalyst to many issues faced by the poor people. They are not able to access better health services, education and livelihood opportunities. This has resulted in high MMR, IMR, malnutrition, migration, trafficking, etc.
Poverty is like a vicious cycle, one cannot move out of poverty unless external support is provided to break the cycle. Many poor people want to start their business or expand their small business but without capital, they are not able to do it.

Our Approach and Achievements
NBJK is one of the most renowned organisations of Bihar and Jharkhand working for past 43 years at the grassroot level. NBJK has been implementing micro credit programme for past 20 years in Hazaribag, Ranchi, Khunti, Ramgarh, Koderma, Pakur and Patna districts of Jharkhand and Bihar.

Self Help Groups and Joint Liability Groups have been formed at village level. Each group does its monthly saving from Rs.50-Rs.100 per month and they use this saving for small internal lending among the group members. When a member of group require amount more than their saving in the group, the group reviews her/his requirement and submits application to NBJK. After reviewing the need and amount, NBJK gives a small loan to the member through the group. Repayment is done by the person in easy instalments. Currently NBJK has a repayment rate of 98%.

10,000 Self Help Groups (SHGs) and 1000 Joint Liability Groups (JLGs) have been formed in over 2000 villages. 60,000 Women and 10,000 men have been organised in these groups. Last year 6196 women and 1223 men were linked with business activities, increasing their income. After contributing financially to the family, their decision making in the family increases. This has increased the social status of women.

Through Micro Credit, NBJK has introduced a transparent and people’s friendly monetary system that reduces practices like land/asset mortgage, advance crop selling and above all reinstated the dignity of women with more stakes in home or outside.

Still much to do…

• Over 50% of people are Below Poverty Line (BPL) in Bihar and Jharkhand states of India
• Poverty is the root cause of several problems faced by people in villages and slums
• Cycle of poverty could only be break if poor are provided with external support for their business