Self-Help Groups and Microcredit

“On his birthday in the Sundarbans, Bodhi’s morning began with children excitedly calling outside, “Dadu! Dadu! Open the door!” As he opened the door to his hut, his eyes shone with joy at the sight of two children with a baby goat and flowers.

Overwhelmed by the innocent love of the children, he laughed with them. They placed pink blossoms at Bodhi’s feet and prostrated. They brought beautiful designs of leaves and flowers they had collected for his birthday after scouting through many bushes, gardens, fields, and roadsides.

Their legs were covered in dried mud up to the knees. Their hair was rough and dusty, their faces glistened with sweat, and their eyes spoke of boundless joy, with large beads of sweat dripping from their large curly eyelashes. They were like two lovely lotuses blooming toward the bright sun, with their roots deep in the mud. The children were born into poverty-stricken homes, but the ultimate richness in their eyes shines like priceless pearls”.

~ Youth Group Member

Self-Help is Essential

As Bodhi sees it, traditional charity involves a gift from one with more to one who has less. That relationship diminishes the self-worth of the receiver. Worse, it fosters dependency, and robs the poor of the initiative they need to overcome their circumstances. With their dignity and the creative power of their soul obscured by dependence, their capacity to improve their own life is diminished, and the poor will remain forever poor.

LDLM, therefore, is firmly grounded in Self Help. Our programs are designed to preserve dignity and strengthen capacity in those we serve. We reinforce the realization of their inner wealth, their capacity to harness the powers of their own being, and to triumph over their circumstances, while building a sense of community.

Our economic Self Help Groups (SHGs) are fully democratic and participatory. LDLM is merely a facilitator. Our programs provide the education and health services, the structural supports and resource linkages necessary to develop awareness and personal capacity. They create the solid ground for development that is both sustainable and which nourishes the individual and the social context in which he or she lives.

The structure of the Self Help Groups (SHG) run by LDLM includes about 5 leaders per village with 15 groups under each leader and 10 mothers in each group. Currently the Mission has about 800 SHGs and 8,000 members. Approximately 700 SHGs have “graduated” to function independently of LDLM management and continue to serve as forces for change in their communities.

During the recent pandemic, apart from their regular work, each group leader was busy educating the villagers about COVID-19 and how to stay safe. LDLM provided free masks and sanitizers to be distributed by the group leaders.

“SHG members and their families are simple, hardworking, very poor villagers. Yet when Bodhi comes for his annual visit, they do most of the financing and planning for cultural performances. They build, create costumes, manage and coordinate other program preparation, meal planning, cooking, and other logistics for 8,000 people! It speaks of a level of commitment, inspiration, and selflessness that most of us simply do not have, while growing a strong base of individual and collective leadership skills in the community.”

~ Ann Shannon, President, LDLF

Microcredit in Action

SHG members make small mandatory monthly contributions to strengthen the habit of saving and create a corpus which is used to extend soft loans to members, thereby eliminating exploitation by usurious moneylenders.

Group members are educated in use of the banking system and assume collective responsibility for repayment of bank loans.

Banks extend larger loans to the SHGs. Individual loan decisions of each group are made by consensus of the group through a completely democratic process.

SHGs have a 100% bank loan recovery rate.

Growing in the difference they can make in their own and one another’s lives, group members naturally evolve individually and collectively in leadership. They address important issues arising in their community, and take strong collective stands in breaking down outmoded and harmful taboos and practices.

I am in awe of these people. When I am introduced, I tell them so. "You are Bodhi's and Baba Lokenath's hands. You are their heart. You are their love and compassion reaching out to touch the people of your villages. I cannot tell you how privileged I am to be here meeting you.”

I bow to them and look into their beautiful, strong faces. There are so many clear and vibrant eyes looking back at me, who are doing such profound work alleviating the suffering of others and bringing real health into the world, that I am having a difficult time not sobbing.

We turn into a village square (a small open field) where lots of women and children of all ages are standing. The conch shell sounds, filling the entire area with its rich, resonant call. The women's joyful calling joins in. Everyone is all so excited to see Bodhi. His visit is a very special occasion for the entire community. They are grateful for the hope and love, the direction and health he has brought to their community, to their families. This work offers a model of possibility for the entire world!

- Ann Shannon, President, LDLF