Unfortunately, although spread across the country, they appear to function effectively only in very few areas. An illustrative example is the case of Husni Ara Begum, a CBCS member and a vegetable vendor. Before the CBCS scheme was launched she could barely squeeze out a profit of Rs 10. Now, besides, saving some amount daily, she is also repaying her loan comfortably. Ten groups of five women, below the poverty line, are divided into two centres, each with a bank account.
Every member has to make a mandatory saving of one rupee a week.
Once a substantial amount is raised, DRDA provides a loan of Rs 1000 to two members, chosen by each group. The condition of the loan is that those members with access to the loan must repay it, without interest, at the rate of Rs 20 per week for 50 weeks, using the one rupee weekly savings. Thus 20 women are initially provided Rs 1000 loans to start a small business, like selling vegetable and the like. The conditions for the second phase of the loan, for the three remaining members of the group, stipulate that the next two members would be entitled to a loan, only if those involved in the first phase had made repayment on time. The group leader, who monitored the saving, disbursement and repayment of the loan, would be the last to access the loan program.