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Journalism of Courage
VADODARA, Nov 2: Thakorbhai Mohanbhai Dubgar, a resident of Gajrawadi, had tried in vain to raise a loan of Rs 5,000 for opening a cycle-repair shop. Everywhere he turned for help he had to return disappointed. The banks did not oblige him as he did not have enough security required by them. Friends were unwilling to extend a hand fearing he might not be able to return their money.
However, the Anjuman-e-Imdad-e-Bahemi (Association for Mutual Assistance) came as an answer to his prayer when it’s officials accepted his application for interest-free loan against jewellery as security. Today, Dubgar is a proud owner of a cycle-repair shop earning his livelihood respectfully.
Mohammed Rafiq Melangbhai Dudhwala had lost his job in a private company. He knew driving but did not have sufficient capital to purchase an autorickshaw or run any other business.
He did approach some jewellers for loan against jewellery, but gave up the idea when told that five per cent monthly interest would be charged.
Then, on information given by some relatives, he approached the association, who advanced him Rs 10,000 to purchase a second-hand autorickshaw against his valuables. Today, he, too, is living a respectful life.
The list of such beneficiaries is endless, and interestingly, they all belong to different castes and religious. If Kamlaben Gadhvi of Yaqutpura took four loans to pay electricity and Vadodara Municipal Corporation dues, Pannaben Panchal of Ladwala also procured three loans to purchase a handpress machine and for other domestic requirements.
Says Anjuman’s secretary Nisar Ahmed Miyan, “The aim behind launching the credit society in 1984 was to help the poorest section of the society, who did not have sufficient means to obtain loans from banks as also to protect them from exploitation of local businessman, who charged high interest rates”.
Earlier, the association advanced loans without any security but stopped the practice when few returned the money. Now loans are advanced against jewellery, which is deposited in the Bank of Baroda lockers and returned once the amount is repaid.
Anjuman, however, gives priority to giving loans to those who have taken loans from other sources or getting back jewellery pawned on interest and for medical treatment.
Miyan says while the loan is to be repaid in 20 monthly instalments, the period is extended in case the loanee is unable to pay the amount due to some reason. Most of the beneficiaries have returned the money within 12 to 15 months, he says, adding till date more than 2000 people have benefitted from the society. The maximum amount advanced is Rs 10,000.
Loans are given through banker’s cheque of Suleimani Co-operative Bank, while payment is accepted in cash as well as cheques. “No official charges are taken from loanees, which is borne by philanthropists and 11 association members themselves,” Miyan says.
Miyan says though many approached them for depositing their money without interest, they refused “as our society is not a bank and is aimed at doing service to the poor”.
Application forms for loans are accepted from 1 to 10th of every month. A loan committee meets on 15th of every month and loan disbursal begins after 18th and continues till the month-end. The association’s office is at Memon Jamaatkhana building, Ladwala Road, behind Jamnabai hospital, Mandvi.
