Empowering Women in Kandawalai and Karachi: Savings That Drive Economic Growth
Sumathi’s Story: A Business Left Stalled
Sumathi runs a small home-based food stall in Kandawalai. She’s known for her delicious snacks, but her business has remained the same size for years. Why? She doesn’t have the capital to invest in essential items like better equipment or bulk ingredients that could reduce costs and boost her income.
Like many women in rural areas, Sumathi lacks access to fair credit. Banks are out of reach, and predatory lenders charge exorbitant interest rates, making loans too risky. Without access to funds, Sumathi’s dreams of growing her business—and providing a better future for her family—are put on hold.
Village Banks: A Pathway to Business Growth
A village bank offers a transformative solution for women like Sumathi. By pooling their savings, women create a revolving fund they can use to take out loans for business investments. This isn’t just about providing financial access—it’s about enabling economic growth, one small loan at a time.
How Village Banks Fuel Businesses
- Savings That Create Opportunity
Women come together to save small amounts consistently. These pooled savings form a fund that members can borrow from at fair interest rates. Instead of relying on exploitative lenders, women can access credit safely and securely. - Loans That Build Businesses
Members can use loans to invest in their livelihoods—buying seeds for farming, tools for tailoring, or inventory for small shops. This access to capital allows them to scale their operations, increase productivity, and earn more income. - Training for Sustainable Growth
Through financial literacy and business development training, women learn to manage their savings, plan their investments, and use loans effectively. They gain the skills needed to grow their businesses and achieve long-term stability. - Collective Strength
Women support each other, sharing experiences and problem-solving together. This collective strength not only builds trust but also fosters innovation and resilience in their businesses.
A System That Grows With the Community
The village bank system is designed to scale and sustain itself:
- Group Level: Women form small savings groups with mutual trust and accountability.
- Cluster Level: Once 150 women participate, clusters are formed to govern and provide additional oversight.
- Federation Level: When membership reaches 1,000, federations emerge, amplifying collective voices and enabling systemic change.
This layered approach ensures that women have the financial resources, training, and support to grow their businesses and strengthen their communities.
Economic Growth That Benefits All
In Kandawalai and Karachi, women play a critical role in their local economies. By growing their businesses, they:
- Provide stable incomes for their families.
- Create job opportunities for others in their communities.
- Contribute to local economic development.
Every loan taken from the village bank becomes an investment in the community, driving a ripple effect of growth and opportunity.
Why Access to Fair Credit Matters
For rural women in Sri Lanka, lack of access to capital is one of the biggest barriers to economic empowerment. Studies show that:
- Over 50% of rural households rely on informal loans with high interest rates.
- Women entrepreneurs often lack access to bank credit, limiting their business potential.
- Microfinance institutions, while accessible, frequently charge interest rates as high as 40-100%, trapping borrowers in cycles of debt.
Village banks offer a sustainable, community-driven alternative that prioritizes fair access to funds, financial literacy, and economic growth.
Your Support Fuels Opportunity
Your contribution will:
- Establish village banks in Kandawalai and Karachi, creating safe, accessible financial systems.
- Provide business and financial training to empower women entrepreneurs.
- Support women in investing in their businesses, growing their incomes, and strengthening their communities.
Be a Part of Their Growth Journey
For women like Sumathi, a small loan can mean the difference between surviving and thriving. It’s not just about savings—it’s about creating opportunities for economic growth and resilience.
Donate today to support village banks in Kandawalai and Karachi. Together, we can help women grow their businesses, transform their communities, and achieve lasting economic empowerment.