Vanasiri Rural Development Society: Growth in Sandbox region
Inspiring stories abound in every corner of the villages inhabited by the livestock-rearing communities in Haveri district, all due to the efforts of the Vanasiri Rural Development Society (VRDS). The growth of the organization from a non-profit to a flourishing cooperative of 1,365 members in Deshpande Foundation’s Hubli Sandbox, enabling sustainable livelihoods for over 5,000 families, is a transformational story indeed.
When VRDS entered the Sandbox, it had 159 SHGs but was struggling to scale or sustain the program as an NGO. Initial meetings and ground studies done in partnership with DF brought about the insight that while an NGO model was the best to handle training, educational development, and awareness, the organization had to think of alternatives that would help it sustain itself and manage its activities such as building livelihoods for its members, providing micro-loans and helping in market development.
With the advice of DF, VRDS devised a co-operative. It raised an initial share capital of around INR 3,00,000 from 708 SHG members, acquired working capital through grants from DF and registered the ‘VRDS Multi-purpose Rural Co-operative Society’ in 2010.
As a co-operative, VRDS provides key financial services to its members including loans for livelihoods through farming, art and craft and allied activities, banking facilities and most importantly, a micro-insurance for livestock. They were able to enhance their value and relationship among the SHG community that VRDS the NGO had nurtured in the last 7 years.
Unbound by the restrictions imposed by traditional banks, VRDS encouraged its members to open savings accounts with the co-operative and grow their investment through savings deposits and insurance policies. The co-operative grew over a year and had grown to 922 members and almost INR 2 crores in loans through NABARD funding when it required a fresh infusion of investment.
VRDS’ growth in the Sandbox region was boosted through the networking opportunities especially during the Development Dialogue 2011. In particular, VRDS got access to a funder who would grow to be their largest support in the next two years: rural lender Micrograam. They slowly reduced their dependence on NABARD and ICICI banking and grew their offering through the partnership with Micrograam, that agreed to directly fund the co-operative instead of going through the NGO route. It helped them scale quickly expanding the loans to a few crores in 2012-13.