In Numbers — Andhra Pradesh — A Look at How Microloans Transformed the Lives of Farmers

November 25, 2016
By Rang De Team
A lot of hard work and investment goes into Farming.

Contrasting with its share of greenery, Andhra Pradesh also has drought-stricken areas in Kurnool, Anantapur, Srikakulam, Prakasam, and Nellore. We have disbursed over 930+ loans and worked with three microventures (organisations focused on rural development) in this state.

Out of the 74 professions we have disbursed loans to, the top three were farmers who grow cash crops, farmers who cultivate gram and students taking education loans.

We have disbursed over 100+ education loans in Andhra Pradesh as well.

Children from rural backdrops can now transform their dreams to become doctors, engineers and much more into reality.

Vegetable vendors, tailors, weavers, saree sellers, petty shop owners, carpenters and 68 other professions have also been supported over the years in this state.

But it is the farmers whose lives have been impacted the most with the help of a low-cost loan.

A pie graph showing the percentage shares in input costs

Farmers in the state take loans to purchase seeds and other raw materials ahead of their harvesting season. As marginal farmers, they rarely have proper irrigation systems and, according to National Sample Survey Office, 70th Round Report, their input costs usually amount to nearly a third of the total output.

We have helped make this expensive investment, especially when you consider the wide range factors that can reduce a farmer’s output, cost less with our low-interest loans.

Most of these loans were in small denominations — less than Rs 5k loans with the exception of the major loans of Rs. 10 lakhs+ to micro-ventures such as GWWSPC and Dharani.

Many women in villages rear goats or buffaloes in their home to increase their income

Organisations like Dharani Producer Company and Godavari Women Weavers Cooperative aim to make life better for rural Andhrites by collective effort.

Dharani and Godavari Women Weavers Cooperative carry out the marketing and processing requirements for marginal farmers and weavers.

Godavari Women Weavers Services Producer Company (GWWSPC, for example, has helped women weavers get freedom from working for master weavers who exploited them. The cooperative markets the finished products and ensures the weavers get a proper, stable income.

Dharani, on the other hand, is a federation and a producer-owned business enterprise in Anantapur.

Out of all the costs in the input price, fertilisers have a huge share at 24 percent. This is where organisations like Dharani have made a difference as they have educated farmers in over 150 villages about the importance of organic farming.

Dharani also assists in procuring, storing, processing and marketing its members’ produce playing a vital role in the lives of over 20,000 farmers.

Dharani encourages farmers to avoid the usage of pesticides, fertilisers, and other chemicals. Organic agriculture gives nutritious poison free produce which has a longer shelf life.

With the support of 10,000+ social investors like you, children in villages now go to school with their parents able to afford the fees through low-cost education loans with the lowest rates in the country

A small loan from Rang De helped fill the narrow shelves of Nagalakshmi’s petty shop. Nagalakshmi, once a daily wage earner, now earns around Rs. 120 per day, a significant achievement.

Dastagiriamma, a devoted mother of two, spends her entire day juggling housework along with her tailoring work. With a loan from Rang De, she can now earn Rs. 200 per day.

And with the 50 lakhs that we have pooled in over the years for Dharani, we are confident that thousands of farmers have been able to lead better lives and had better harvests in recent years.

As a Rang De social investor, you can help us transform the lives of rural entrepreneurs all over India. 

To comply with RBI regulations, Rang De’s lending operations are moving from rangde.org to our brand new platform rangde.in. Visit rangde.in to continue social investing.

This month, we are again looking to raise funds for Dharani who are seeking a 10 lakh working capital loan on our platform.