Building Up Rural India - Alleviating Poverty

Nearly 40% of India's population of a billion plus lives in abject poverty. In India, we find that many are poor because of one simple reason — 'lack of regular income'. To add to their miserable plight, over 90% of the rural poor are deep in debt. Unable and unwilling to access banks or to apply for loans , the poor turn to local moneylenders, who charge 60% to 120% interest (per annum) or even more, trapping the poor into extreme poverty.

Micro Enterprise Development (MED) is a proven way to strengthen viable, small businesses, resulting in increased household income and savings, and thus, alleviating the crunch of economic poverty. World Vision works alongside enterprising members, helping them realize their economic potential and proving that they have the capacity to build their own, small Micro Enterprise units. World Vision facilitates the formation of Self-Help Groups (SHGs) to save, share and build capacity. Small loans for the businesses are provided and collected through individual members in SHGs.

A specialized non-profit company, established under the Indian Companies Act, manages the loans and economic assessment. The non-profit company called 'IMPACT' focusses on MED in target communities of World Vision. Small loans (ranging from Rs 2,000 to Rs 10,000) are provided for individuals in SHGs, along with training on management, marketing and investments.

As a result of such economic development initiatives, many small businesses expand and become viable. As a result, poor families have enough to feed their children and send them to school. The marginalized poor develop their businesses and manage to live a decent life. This approach is very powerful in lifting communities from economic poverty, ultimately leading the community to be self-reliant and live with dignity.

If you decide to partner with World Vision in building economically stronger communities in India, you would be helping to reach out to millions of poor people and adding on to loan funds for communities. These will be disbursed through various MED branches in India.