Credit for Credits

Saraf’s students,most of who are from underprivileged backgrounds,were soon to become micro-financers. Over the summer break,the students were given a preliminary assignment. Each student was required to keep a tab on one’s expenditure and save money that would otherwise be used for frivolous consumption. “Kids keep getting rewards for little errands they are asked to run for their parents. I had asked them to cut down on unnecessary expenses,like buying a pack of potato chips,and save the money. Ninety eight per cent of the class fared well in the assignment.”

The class was then divided into teams,each replete with a treasurer,an accountant and a coordinator. “The teams had to together save an amount over Rs 100. They were then asked to set a realistic target. An ambitious group,naively yet adorably,set a target of Rs 200,and there were others with modest targets like Rs 110,” says Saraf. The groups saved from August 2 to September 2,and at the end had a pool of Rs 900. “The month taught them not only the art of saving but also lessons in teamwork and trust,” says Saraf,adding,“On September 2,I brought my laptop to class and the groups unanimously picked borrowers in Pune they wanted to lend to. While one group picked a vegetable vendor,another picked the barber whose example I’d given earlier.”

Rang De makes sure the money invested is recovered in a stipulated time with a nominal interest. “One has the option of withdrawing one’s contribution or reinvesting it,” says Saraf. This classroom micro-finance experiment will not end with the maiden trial. “Towards the end of the month,the groups will be visiting the borrowers to get a feedback on how their money has been helpful to the latter,” says Saraf. She adds that while she’ll be teaching the class only till next April,she “would want them to retain the habit of saving,and serving society in their own capacity.”