Towards Financial Stability

Financial inclusion has been a long-cherished dream. Access to financial services with financial literacy is a critical tool for comprehensive sustainable development. Economic progress leads to a better quality of life.

In our effort to change lives through financial inclusion and entrepreneurial empowerment, we have frequently witnessed business success translating into increased school enrollment. The positive impact of financial inclusion does not stop there. With increased financial support, VFS’ customers have reached out to get better health care, housing, and sanitation facilities. The success of the entrepreneurs has led to the creation of jobs.

The benefits of microfinance have been manifold. By bringing low-income populations within the framework of the formal banking sector, financial inclusion has also ensured security from exploitation. One common scenario earlier was of money lenders and Ponzi schemes exploiting disadvantaged and vulnerable sections of people.

Things are looking up. The Reserve Bank of India said on August 17 that its Financial Inclusion Index for the period ending March 2021 was 53.9, against 43.4 for the period ending March 2017.

As we continue to pursue VFS’s goal of lifting rural women out of poverty and empowering them financially,  I come across scores of stories that strengthen my resolve to pursue this dream of financial inclusion. Subhangini Adak, a VFS customer from Balasore district in Odisha, is one such example.

Subhangini grew up in acute poverty and had to quit her studies after Class 7. Subhangini never dared to dream big but just prayed for the day when she would not have any financial worries. After marriage, Subhangini hoped that her days would change, but her husband was a contractual farm labourer and could not help much. Over the years, as the couple struggled financially, Subhangini became a mother of two.

Motherhood is a great force. Looking at her children’s faces, Subhangini vowed to fight poverty by herself.

Farmers in her village Kumarmuli have been growing betel leaf or paan for generations. But Subhangini observed that the young generation was more likely to go for blue-collar jobs than continue growing betel leaf. As the scarcity of betel leaves worsened, she saw an opportunity.

On a neighbour’s advice, Subhangini contacted the Chandaneswar branch of Village Financial Services. With the loan, Subhangini could buy her boroj, a sort of conservatory in which the betel vine is grown. With hard work and rock-solid determination, she was able to secure a good harvest. Subhangini was supported by her husband, who brought his expertise in farming to Subhangini’s boroj. Subhangini was able to sell her produce with a healthy profit margin. The first harvest provided the family of four with much-needed motivation and hope for the future.

Her first priority after the sale was to support her children’s education. She made certain that her children did not have to abandon their studies, as she had. Then there was their house. During the monsoon, the roof leaked.  She had the roof replaced.

As ’Subhangini’s financial situation improved, she addressed her childhood worries. One of them was her mother’s asthma. She was now able to afford the medical bills and provide better care for her.

Now, with all her concerns addressed, the entrepreneur in Subhangini wants to grow more. Her current success has fueled her desire to expand her business, and she hopes to acquire another boroj by next year.