Enabling finance & support system

Kavitha Devi from Rajgarh in Churu district of Rajasthan runs a small cosmetic’s shop which gave her financial independence and allows her to provide for her family. Before she started the business ten years ago, her husband was the sole earner and didn’t have a reliable source of income. The poor financial situation was putting a strain on her family life.

Kavitha was determined to find a way to contribute to the household income and started the cosmetics’ shop with whatever little she had saved. However, she didn’t have enough fund to update her stock at regular intervals as cosmetic business needs change with fashion trends. Her business began to decline and once again she became reliant on her husband’s unpredictable income.

Having forced to run the shop with paltry income, she kept seeking ways to improve the situation. However, all her attempts to secure a loan failed on her inability to produce collateral security demanded by the financiers.
After learning about Muthoot Microfin from a friend, Kavitha got excited about the collateral free loans. She soon approached the company and joined a JLG to avail first cycle loan of ₹30,000. She used the entire amount to buy trendy items into her shop. Her customers gradually increased on new product arrivals and eventually, her weekly profit hit ₹3500 within six months.

After availing her second cycle loan of ₹ 45,000, she introduced fast moving and cheap cosmetic items which fetched more customers and income. Increased income allowed Kavitha to absorb all the family expenses. With her business growing steadily, Kavitha now plans to open a new shop and venture into textile business.

Kavitha says “Timely support from Muthoot Microfin hasn’t just helped improve my ability to provide for the family, but it has also benefitted me to establish strong relationships within the community. Being part of a loan group with other women from my village has allowed me to build a strong support system”.