The Dalit Freedom Network & Operation Mercy Charitable Company-India

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"“The interest rate, in my view, should be 30 per cent. What do you think, Nanci?” “I think that is unethical,” replied Nanci Ricks, President of the Dalit Freedom Network (DFN), headquartered in Denver, Colorado. “But what are you trying to teach the Dalits? Are you suggesting to them that their money is worth less than what banks charge in the area? And how else can this microfinance operation be sustainable?” ¹

When World Relief began training Paramor’s team members in micro business lending in late 2005, none of the Dalits were being served by the groups now managed by Operation Mercy Charitable Corporation (OMCC) – the organization formed to manage economic development activities for the untouchable population of India. Once over 60 OMCC staff members were trained, the number of self help groups (SHG) had mushroomed, stretching the abilities and experience of the team to manage the teaching, hand-holding, and coaching needed to get the groups organized into a savings mode, and their savings into a local bank. There was some confusion, however, over what interest rate the women should be charging themselves, when they loaned out their savings.

. Tom was not only interested in her company, but he was actually flying down to Denver on his way back from Asia to meet her. He asked Stacey to pick him up from the Denver International Airport. He said he would call her back with the flight details a week later. Tom was coming to Denver to discuss her business! “But, I am not planning to sell my business!” thought Stacey. She called out to her husband, who was an investment banker. “Will, come here and listen to this message,” she said. “I don’t get it.”

A week later, Tom called back, and left her a message with his flight schedule. He was coming to Denver the next day. He was on the last leg of his journey from Asia and was making a stopover in Denver to meet her. Stacey drove to the airport to pick Tom up. She had no idea who this man was or what he looked like as Tom had not sent her a picture or given any description of himself or the clothes he would be wearing. At the airport, as she was waiting in the lobby at the passenger pick up area, her eyes spotted a tall man with a scruffy beard wearing a hat sporting the Greater Good logo. “There he is!” Stacey thought and walked toward him to greet him.

“What is the interest rate a local bank would charge one of the Dalits, assuming they would be qualified for a loan, with no assets, no land, and no credit history?” the American consultant asked. “25 to 35 percent,” answered Moses, during a break in the buffet dinner at the home of an American partner in Denver. “When the women deposit the group’s savings in the same bank, they are paid how much?” asked Williams. “5.5 percent per year,” replied Moses. “And when the women loan one of their members money to start a home-based business, or buy a cow? What do you tell them to charge their member, 30%, or 5%?”

OMCC/DFN Partnership - Next Page>>

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