Microfinance plus: access to education

As I write this, Jesu phones – it’s the bus for us at 11 p.m. tonight. 

The Activists for Social Alternatives (ASA) is a non-profit organization established in 1986. Today, it works in all districts of Tamilnadu and also in 5 northern states of India. It has spearheaded programs directed primarily at rural areas. ASA runs a microfinance program which is also supported by Oikocredit – two loans have been approved, the first of INR 25 million for 6 years was approved in 2005 and the second loan of INR 50 million, also for a term of 6 years was approved in 2007.

Providing quality education to children of its microfinance clients is one of ASA’s prime goals. In line with this, in 2000 with an initial enrolment of 40 students, ASA established the Vidiyal Matriculation Higher Secondary School in Valanadu, Trichy district, in the state of Tamilnadu

Marungapuri Block where the school is located is one of the most drought prone areas in Tamilnadu and here, ASA has also been engaged in watershed development and land tenancy issues. The school has grown steadily since 2000 and now offers higher secondary education up to 12^th standard. It has an excellent record of 100% of its graduating students passing State Board examinations and qualifying for professional institutions, colleges and universities.

In June this year, Oikocredit approved a loan of INR 50 million (approx. 700,000 euros) to finance the expansion of existing school facilities and the construction of a hostel for male and female students. At the time of the loan’s approval, 1,346 students were enrolled in the school (465 girls and 881 boys)

Access to education by poor people is an important social objective. This is one of the few education projects in Oikocredit’s portfolio. It is also an example of a microfinance plus initiative and I am keen to see how the program is sustainable given the outreach to poor people, many of whom cannot pay school fees. Is the school reaching its target clients? While I do not look forward to an overnight bus ride (taking almost as long as the plane ride from the Netherlands to India!), I am certainly looking forward to seeing this project on the ground.

11 September 2011 (p.m.), Bengaluru, India

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