BACKGROUND

Dr. Prabhakar, alias Ron Puth, founder of SRI (Society for Rural Improvement) is a friend of Dr. Shashi Tharoor, former U.N. Under Secretary General, a colleague of Dr. Muhammad Yunus, the Nobel Laureate and a dual citizen of U.S.A. and India. After two decades of academic service in U.S.A., he has relocated to the rural areas of Kollengode, Palakkad, Kerala, India and embarked upon alleviation of poverty among the poorest rural women, by replicating the Grameen Banking System of Bangladesh, brilliantly conceived and meticulously executed by Dr. Muhammed Yunus. The Grameen Banking System of Bangladesh, which has been lauded by international financial community, takes micro-credit to the doorsteps of the poorest and needy rural women, as no banking system reaches out for them. Here the idea that credit is a fundamental human right struck him.

Dr . Prabhakar, Founder of SRI with Dr. Muhammad Yunus, Nobel Laureate

Encouraged by this innovative concept and the field experience in Bangladesh, Dr. Prabhakar founded SRI (Society for Rural Improvement) in February, 1996 and committed himself to replicate the Grameen Banking System.

COMMISSIONING THE PROJECT

SRI was registered under the Indian Trust Act as a charitable and non-profit Trust on 26th, February 1996. After several meetings with orientation, motivation, education and training about the basic concept, principles, objectives and functions of Grameen Banking System, centers No.1 & 2 were established at villages of Mathakode and Toompana, Kollengode, Palakkad (A District of Kerala in India) with 10 women members at each center and a disbursement of Rs. 100,000/- (US $ 2000). After twelve years, SRI has expanded its clientele base to 35000 with 6500 groups in 17 branches in 8 districts of Kerala and Tamil Nadu, (Palakkad, Trichur, Alleppey, Kollam, Trivandrum, Kottayam and Malappuram and Coimbatore) with a loan portfolio of Rs. 14 crores only (US $ 28,00,000). Savings generated among the beneficiaries is Rs. 11 crores (US $ 22,00,000)

Beneficiaries were carefully and painstakingly screened and selected based on need, desire and flexible poverty criteria.

Dr. Shashi Tharoor, former U.N. Under Secretary General, inaugurating the 10th Anniversary Function and Family Get Together of SRI Beneficiaries

Centre Leader receiving the Award for Best Centre during the Anniversary

A student being rewarded as the best Student during the Anniversary

RESOURCES

· To start with, the initial investment and operating capital has been provided by Dr. Prabhakar himself.

· Rs. 20 lakhs (US$ 40,000.00) seed capital loan was granted by Grameen Trust, Bangladesh, in three tranches, approved by Reserved Bank of India on April 1997. The seed capital has been completely repaid. Scaling up fund of Rupees 25 lakhs (EURO $ 110000) was approved and released in three tranches in the year 2002 – 2003 which has been disbursed to the beneficiaries. Further Scaling up capital of Rs. 50 lakhs (US $ 100000) was released in 2005 -2006 which has been disbursed to more beneficiaries. The scaling up fund from Grameen Trust is being repaid promptly.

· Rs. 50 lakhs (US $ 100000) as loan has been released by Dhanalakshmi Bank, Kollengode, which has been repaid completely. Again Rs. 350 lakhs (US $ 700000) is released and disbursed.

· Rs. 20 Lakhs (US $ 40,000) as loan has been released by RMK (Rashtriya Mahila Kosh), New Delhi which has been completely repaid. Further a loan of Rs. 1crore (US $ 200000) has been sanctioned and disbursed.

· An amount of Rs. 5 crore and 50 lakhs (US $ 1100000) has been released by SBI (State Bank of India) in four tranche which was disbursed to more beneficiaries.

· Rs. 1 crore (US $ 200000) has been sanctioned and released by SMGB (South Malabar Grameen Bank). The Loan amount is being repaid promptly to SMGB (South Malabar Grameen Bank).

· Rs. 1 crore (US $ 200000) has been released by SBT (State Bank of Travancore) and disbursed to the beneficiaries.