Setting the goal at the empowerment and independence of economically marginalized sections, the Sanghamam Multistate Co-operative Credit Society started functioning. It aims to establish a viable model of interest-free microfinancing and will operate in Tamil Nadu, Pondicherry and Kerala. The programme 'Introducing Sanghamam' was held at its Calicut headquarters. Introducing the society, Prof. K. A. Sidhiq Hasan, Asst. Ameer of Jamaat-e-Islami Hind, detailed the goals with which Sanghamam has been organised.
He said the venture is part of the fight against the inhuman and exploitative interest-based economy. The unbearable rates of interest charged by most conventional microfinance ventures in India have even led to mass suicides of farmers, forcing the RBI to control NBFCs and microfinance ventures. In this scenario, Sanghamam presents an alternative model of interest-free microfinance, proven successful around the world.
Sanghamam President T. K. Hussain detailed the working model. Registered by the Government of India with Rs 50 crores of authorized share capital, Sanghamam offers membership in the three states through shares. Assuring safety and liquidity, deposits will be mobilized from members and redistributed among members as interest-free micro loans, mainly for micro enterprises and self-employment ventures. One member can avail a loan of up to Rs 10 lakhs. Sanghamam shares the profits and losses from these enterprises with the members.
Mr. T. Arifali, Jamaat-e-Islami Kerala Ameer, concluding the function, stated that the main cause of the grave worldwide economic depression and the deep fall in the value of the Rupee is the interest-based economy. Interest-free finance will ensure economic growth, eradicate corruption and reduce the gap between the haves and have-nots.
Managing Director Mr. K. Shamsudhin informed that Sanghamam will be opening 3 branches each in Tamil Nadu and Kerala shortly. Vice-President Thufail Ahmmed Vaniyambadi and Human Care Foundation chairman P. Sulaiman also addressed the gathering.