Arjun Sengupta’s report on unorganized labour talks of 70 per cent of India’s teaming billion living in abject poverty, earning less than Rs 20 a day, with most workers in the unorganized sector barely manage a subsistence existence. There is no question of saving, particularly in times when slum dwellers are unable to find work. In situations of illness or additional requirements of a festival, improving the infrastructure of the house, expenses become daunting and people have to resort to taking on debt.

One example is Chandrakala, a resident of Ganga Nagar, who had made one small wall within her house about 4 feet long and 3 feet high to create privacy for her son and daughter-in-law. Four months after it had fallen down, she had not been able to put together Rs. 150 she would need to buy the cement to fix it. She has safeguarded the bricks so that whenever the family has the extra money, they will put up the wall again with their own labour.

After witnessing troubles like the example above and private lenders who give loans at rates of 10 to 20 percent, Muskaan began savings groups in each of the slums where we work. Savings groups, which are primarily for women, also serve to bring women together to discuss community issues, help women learn to sign their names, and teach planning and budgeting skills. Women save what they can, often small amounts like Rs 10 to Rs 20 and then are able to take loans when they need them at a nominal interest rate. The most common reasons for loans are health, income generation (like opening shops), weddings, food on a day when they did not earn, or improving home structures.