Perseverance, Hard Work Pays Off

Mahalakshmi A, dwelling at Kosapalayam in Pondicherry is a successful micro entrepreneur managing a small ‘household items’ store in her village. However, her journey to success wasn’t a cake walk. Until 3 years ago, Mahalakshmi’s husband Arumugam – who is a driver, was the only earning member of the family, and his income was too small to maintain the family consisting of two college going children.

The situation forced Mahalakshmi to do something of her own to improve the financial condition of the family. Following, she managed to open a small store near her home with some credit availed from a local lender. However, due to insufficient fund, the business remained gloomy. She was searching for another dependable investment and came to know about Muthoot Microfin from one of her neighbours.

Impressed by Muthoot Microfin’s simple and effective operations mode, Mahalakshmi joined a Joint Liability Group and availed the first cycle loan of ₹15,000 in quick time. With the money, she bought in more household items and filled in the shop. Her sales increased gradually and steadily with the introduction of plastic chairs, tables, mats, mops etc into the shop.
After promptly closing the first cycle loan, Mahalakshmi was offered the second cycled loan of ₹30,000. This time again, she utilised the entire amount to build stocks in her shop. She also received financial literacy and business acumen training from Muthoot, which helped her manage the business more efficiently. Gradually, her customer base increased and her daily profit reached around ₹850 from a meagre ₹150 at the beginning of the business.

She now saves money for her children’s education and future needs of the family. Mahalakshmi is grateful to Muthoot Microfin for supporting her at a crucial time. In her words, “Muthoot Microfin helped me come out of the initial setbacks; and the company has shown confidence in me by giving me loans without any collateral”.