Kursheed Begum

Like so many of Spandana’s clients, Kursheed Begum started small. She was nineteen when she moved to Shamirpet, a semi-urban community outside of Hyderabad, and for eighteen years she raised four children while doing tailoring work for some of her neighbors. Her husband was a construction worker.

In 2004, Kursheed decided that with a small amount of credit, she could help her husband increase their household income and raise their family’s standard of living. With a Spandana loan of Rs. 10,000, she began her first business, a small kirana shop nearby that sold bottled drinks and food items.

The shop was the first of its kind in this developing community, and its operation was a huge success for Kursheed’s family. In 2005 she fully paid off her outstanding loan and moved to take a second loan, this time to establish a small copy store next door to her kirana shop. In 2006, after taking her second Spandana loan of Rs. 15,000, Kurhseed bought a Photocopy machine and a small coin-operated telephone to open up the photocopy store. This business, along with her kirana shop, has added Rs. 80,000 to her family’s annual income. She has been able to send all her children to school, and they have bought a house of their own near her businesses.

Recently, Kursheed took another loan from Spandana – of Rs. 20,000 – to start a tailoring business in her neighborhood. Her businesses now employ three people in her community, and her tailoring shop serves clients in the surrounding communities.

“Before I started these businesses, as a Muslim woman I would not even come out of the house,” Kursheed told Spandana. “Now I am confident.”

 

Name	Kursheed Begum
Village	Shamirpet
Venture	Tailor and proprieter
First Loan	Rs. 10,000
Current Loan	Rs. 20,000

Laxmi

“Because of taking a Spandana loan,” says Laxmi, a resident of the Kukatpally locality of Hyderabad, “I can help other three families sustain themselves.” Laxmi is referring to the three employees she has recently hired to help her run her ironing business. Laxmi is a relatively new Spandana client, but access to credit on terms she can afford is already helping her to improve her life and the lives of others.

Laxmi was first exposed to Spandana through a friend who had taken a loan. At the time, Laxmi was operating a small ironing stand near her home. Hers was one of the few ironing shops in her locality, so neighbors seeking to have saris and pants pressed supplied a steady stream of business. As new business owners, however, Laxmi, her husband, and her three daughters could only afford to buy two irons, which severely limited their productivity and forced them to work long hours to complete all the orders they were receiving.

When she heard about Spandana’s group loans, Laxmi decided that joining a centre would be a good idea for someone in her situation. Her family had no savings and they could not procure a usefully large lump sum from the business’s profits – most of the profits went to pay the medical bills for Laxmi’s youngest daughter, who has heart issues. But a reasonably priced loan would allow them to buy more irons and to take more orders, increasing their daily income without raising their costs.

In late 2008, Laxmi and some friends formed a centre and took loans from Spandana. Laxmi’s inaugural loan of Rs. 12,000 allowed her to purchase two more irons, which doubled her business’s output. Now that she is able to handle more orders, she has expanded her business, hiring three local factory workers who work for her at night.

Laxmi still works very hard, but she feels that she is now dedicated to a business that has the tools it needs to be profitable.

 

Name	Laxmi
Village	Kukatpally
Venture	Ironing Shop
First Loan	Rs. 12,000
Current Loan	Rs. 12,000

Monappa and Bhagya

Monappa and his wife Bhagya were loaded with substantial debt when Spandana first came to their small village outside of Tandur. They had taken several loans from village moneylenders, whose annual interest rates were consistently higher than 35%. With three children to feed, the couple decided that they only way to make ends meet would be to create an additional source of income.

Monappa was a carpenter by trade, and at the time he operated a small shop out of his home. Unfortunately, this shop did not generate enough income to allow him to support his family and pay off his costly loans. In 2007, Monappa and his wife approached Spandana about purchasing a buffalo. The cost was high – Rs. 20,000 – but selling buffalo’s milk would provide the family with additional income, and the animal could be maintained by the couple’s three children.

Spandana evaluated Monappa and Bhagya’s situation, and decided to extend them a loan for the purchase of the buffalo. The venture turned out to be a huge success: the couple was able to pay off their loan from Spandana within a year, and upon repayment they decided to take out another Spandana loan, this one for Rs. 25,000, for the purchase of more buffalos.

A year later, Monappa and his family live a life that is self-sufficient and financially grounded. They have paid off their second Spandana loan, along with the debt they owed to moneylenders. And the additional income provided by their milk business has allowed them to develop healthy saving habits. In fact, Monappa just purchased an all-purpose carpentry table that substantially increases the amount of orders his business can take – financed wholly through the family’s new savings.

“Neither of my first two daughters has been able to go to school,” Monappa told Spandana. “But with our improving conditions I hope to send my youngest daughter to the English private school in Tandur.”

Spandana has been inspired by Monappa’s story and looks forward to continuing to support his life-improvement aspirations.

Name	Monappa
Village	Tandur
Venture	Carpenter & Dairy producer
First Loan	Rs. 20,000
Current Loan	Rs. 25,000