Successful Indian Women at the grassroots

Members of the Kenari Centre

Success in business and entrepreneurship is often viewed from successful stories from the top especially of those who are in public listed companies, global networks and high flying type. However in our new economic modal there are also amazing stories from the bottom and from ordinary folks who are creating wealth. These are people who have moved from poverty, from welfare dependency, from self pity and low self esteem to economic freedom, confidence, dignity and recapturing their space in an open economic.

One such story are women from a small town called Hutang Melingtang in Perak. On November 8, 2010 I accompanied Dato Verasingam, Dato Siva Subramanium to Hutang Melintang to meet up with sixty Indian women who are members of the Kenari Centre of Amanah Ikhtiar Malaysia (AIM). The visit was very inspiring as the women here are an outstanding example. They have a 100 % track record for attendance and 100% repayment rate for their loans. Members have taken loans estimating over half a million.

The centre which comprises twelve groups and sixty members began in 2000. Uncle Manium as he is called by the women is a local community leader was the catalyst and father figure for the women. The groups began in his home and eventfully moved to a community centre office of the MIC to accommodate the twelve groups and sixty members.

Three women shared their story. They were just ordinary women in a small rural town but they had a determination to succeed and there is a story that all of us must read about.



Ms Premalata

 Premalata Subramaniam started with a RM1,00 loan at AIM in 2001. She sells fish as the market. She first owned a bicycle eventual managed to buy a motor cycle and progressively bought a small lorry. Today she also sells at four night markets (pasar malam) in addition to selling fish at the morning market. Over the years she has managed to buy a car and a house and now draws a monthly income of RM4,000. She now has a RM30,000 loan from AIM. All in she has taken RM86,000.00 in micro loans and has been faithful in repaying. She has an very good track record and credit discipline as she has borrowed about ten times.

Ms S Manggalam

S.Manggalam is another success story. She joined the group in 2005 and since then borrowed seven times amounting to RM 41,000.00 Currently she has a loan of RM16, 000. She undertakes direct selling of products and has a strong down line chain. She has been very successful as she has managed to buy a car and house and earn about RM3,000. She is now applying for a RM30,000.00

Ms Uma Devi

Uma Devi together with her husband is involved in a number of business. They started of in a very small way selling scrap metal using a rented vehicle. They now own their own lorry and are planning to buy their house. In addition to doing scrap metal work, they have ventured into wedding package by providing a service for tent, chair, catering of food. Uman now employs five people thereby creating new jobs. She now has taken a loan worth RM18,000

 

Some Lessons

In hearing their stories one can learn some precious lessons:-

First they told that they were not looking for charity or welfare handout but a way out of low income and poverty.

Second, they clearly indicate that hard work and industry is most important virtue to posses.

Third, they all recognize that they need the support of others in good time and challenging period. A community orientation to micro loans provides a human touch to commercial transactions. The groups check and support gives many of the women the confidence and solidarity.

Fourth, character assessment becomes central to loan processing and this has become the measuring yard stick. The group plays that role. Credit discipline is something to be nurtured.

Fifth, the AIM approach of progressively moving from a small group to a bigger one enables the organization to manage the financial risk taking in this process. All the women borrowers earned their trust as they were found worthy from small loans of RM1, 000 to higher loans over time. Many of the women have gone through a seven and even ten times loan cycle.

Members of the Kenari Centre (AIM) at Hutang Melintang

AIM was established in 1986 among Malay women. The first initiative among Indian women began in 1999 when 10 Indian women became members at Ladan Derelik in Sitiawan through the initiative of Dato K Kumaran (now Tan Sri) when he was Deputy Rural Minister. The outreach to Indian women was enlarged during the time of Dato G Palanivelu when he became Deputy Rural Development Minister.

As at April 2010, there are a total of 2,054 Indian women borrowers with a cumulative loan profile of RM9.4 million. There is much potential through AIM’s approach of micro loans where the group of five co guarantees for each other. There must be greater awareness in the community to plug into the various schemes for wealth creation.

Premalata, Manggalam and Uma Devi are some examples of how Indian women have pulled themselves and their families out of poverty. They serve as light to inspire other to not to seek charity and welfare but be empowered in creating wealth.