Khushhali Bank: helping women stand on their feet

Entrepreneurship comes from within. And while some might think that men have monopoly on entrepreneurship, one is pleasantly surprised to find out about the entrepreneurial spirits of Pakistani women and that too from the less privileged backgrounds.

Today on women’s day, we showcase the success stories of two such women who beat the odds and made it happen: Gulzar Bibi and Salma Bibi. But first, some background of the institution that made it happen: Khushhali Bank, one of the country’s leading microfinance institution with increasing footprint across Pakistan. The bank’s core objective is to provide microfinance services to people, particularly women, who are generally not catered by the other banks. Such small loans with easy repayment plans are issued to groups that have identified needs in fields like agriculture, livestock and small businesses; with this, has emerged the concept of social collateral for community-based lending where physical collaterals are near to impossible. Currently, loans of such category by Khushhali Bank range from Rs 10,000 to Rs 50,000 depending upon the needs of these small business entrepreneurs.

The bank’s unique selling proposition is its door-step delivery of facilities like documentation, recovery and meetings; women who generally hesitate to leave their homes cite this facility to be a driver to start their own set-ups. An interesting insight of the two success stories and many others of the bank is how these women have genuine financing needs, and how they repay on time not from any other source but the cash generated by their ventures. They also have very realistic demands and ambitions that coincide with their cash flows; majority of them do not have extravagant aims that might lure them into more loans than they could repay and thus fall into recovery trap.

What has held these women at bay from taking some sound financial decisions for their families is the lack of opportunities, access and awareness about microfinance. Here, capacity building can take the financially distressed families to better place in their lives.

Another very common feature of many cases is how these women embody the power of determined resolve amid heaps of challenges, while pursuing their entrepreneurial dreams. This scribe’s encounter with two such women is worth pondering on. This amazing woman currently runs a small canteen at a local school in Nogazi village Tarnol Islamabad. Living with her husband and three children, Gulzar Bibi’s life had been marked with financial troubles that never allowed her have a permanent source of living.

Her journey towards a better living started with her aspirations to progress from working at bungalows to starting something of her own. Stitching and sewing had been the only source that was never enough for a family of five and running a school canteen was never feasible due tough financial constraints. However, door-to-door program introduction and group loaning by Khushhali Bank changed Gulzar Bibi’s life for the better.

The first loan turned to a second and so on, all paid back on time. Today Gulzar BIbi has availed four to five loans from the bank and plans to continue seeking the banks help and guidance for polishing her permanent bread winner, the school canteen. Her latest loan is worth Rs 19,500; all her loans have had specific needs; the first one was for upgrading the canteen facility and the rest of them have been for buying eatables from the local grocers for cash.

With the responsibilities of her daughter’s marriage and her children’s education hanging over her head, Khushhali loan has enabled Gulzar Bibi to fight what is a recurring feature is in many households: the husband who does not contribute to the daily expenditure. Today, she stands not only as a survivor, but also a victor in being able to generate income to support her family.

Residing in the middle of Nogazi village, Salma Bibi is another role model for other women from struggling households who wish to flip the fortunes of their families by becoming a significant contributor of the income. Being the eldest of the siblings, Salma always aspired to become a helping hand for her father who had a large family to support.

The word of mouth became the source for this improving journey; Salma Bibi’s interest and passion for stitching, knitting and embroidery helped her figure out which way to go. Initially, with only one sewing machine, carving was not possible. However; with Khushhali Bank’s microfinance loan, she was able to purchase a specialised machine that helped her start taking embroidery as well as stitching orders. However, power shortage in the village is a major hurdle for her in dealing with rising orders.

Salma Bibi plans to expand her business operations that include buying another machine only through Khushhali Bank. Today, Salma’s room is crowded with women coming either for orders or for learning as her passion has helped her to teach stitching and sewing to young girls of the vicinity, a for-profit service which she aims to grow if her finances allow.