Hands of Freedom uses a Savings Group model as the first step in providing micro-enterprise services. A Savings Group is a self-managed, voluntary association of up to 20 members within a community. Members of the Savings Group meet monthly and deposit an agreed-upon portion of their profits into a local bank for savings. As their collective savings accumulate, each are given the opportunity to take small loans from the savings pool created. The terms, amount, and approval of the loan is determined by the Group.
Because of the discrimination against those in the lowest caste in India, they are not allowed access to banks. Hands of Freedom steps in to provide that access by undersigning the savings accounts and helping the groups to organize. The role Hands of Freedom plays is not to manage but guide the groups to self-management.
The Savings Group model serves as an incubator to assist individuals and communities in developing financial planning and management skills. It is a platform from which individuals can develop and move onto larger undertakings. Currently Hands of Freedom mentors thousands of women in three cities in India.
After successfully repaying one Savings Group loan, members become eligible to receive larger, external loans from Hands of Freedom to be used for income-generating activities such as:
Dairy
Plastic molding
Tailoring
Vegetable vending
