How to Start a Co-Operative Society
Proposal for starting Ashodaya Samithi Multipurpose
Co-operative Society
Name: Ashodaya Multipurpose co-operative society
Location: Mysore
Background
Sex workers working in Ashodaya Samithi did not have access to facilities to save money. They could not open bank accounts without identification and residence proof – documents that their illegal occupation did not allow them to possess. Sex workers also faced humiliation when banks insisted that they bring their husbands along. Most sex workers kept their earnings with themselves and there is absence of savings. Sex workers were also robbed of money by local goondas or extortions by Police.
In the absence of savings, sex workers are forced to borrow money to meet unforeseen expenses resulting from illness, marriage or death in the family. Women had to take loans from local money lenders at interest rates as high as 300% or approach chit funds with unfair lending deals. Consequently, sex workers found themselves in deep economic debt and were compelled to engage in risky and unsafe work. Economic desperation exposed sex workers to severe vulnerability and exploitation.
In order to address economic concerns of sex workers, Ashodaya decided that a financial institution be set up exclusively for sex workers. It was agreed that such an agency would offer easy access and low threshold services to sex workers while simultaneously ensuring prudent management for financial viability and has the aim of providing financial security to sex workers and securing educational and career building opportunities for children of sex workers.
Objectives: 1. To encourage regular savings among member and to provide credit to members for provident and productive purposes. 2. To set up small scale businesses like juice junctions, tea shops, small breakfast centers etc., and other items those are economically viable. 3. To create special funds for investment purposes, including procurement of essential
Co-operative Society
Name: Ashodaya Multipurpose co-operative society
Location: Mysore
Background
Sex workers working in Ashodaya Samithi did not have access to facilities to save money. They could not open bank accounts without identification and residence proof – documents that their illegal occupation did not allow them to possess. Sex workers also faced humiliation when banks insisted that they bring their husbands along. Most sex workers kept their earnings with themselves and there is absence of savings. Sex workers were also robbed of money by local goondas or extortions by Police.
In the absence of savings, sex workers are forced to borrow money to meet unforeseen expenses resulting from illness, marriage or death in the family. Women had to take loans from local money lenders at interest rates as high as 300% or approach chit funds with unfair lending deals. Consequently, sex workers found themselves in deep economic debt and were compelled to engage in risky and unsafe work. Economic desperation exposed sex workers to severe vulnerability and exploitation.
In order to address economic concerns of sex workers, Ashodaya decided that a financial institution be set up exclusively for sex workers. It was agreed that such an agency would offer easy access and low threshold services to sex workers while simultaneously ensuring prudent management for financial viability and has the aim of providing financial security to sex workers and securing educational and career building opportunities for children of sex workers.
Objectives: 1. To encourage regular savings among member and to provide credit to members for provident and productive purposes. 2. To set up small scale businesses like juice junctions, tea shops, small breakfast centers etc., and other items those are economically viable. 3. To create special funds for investment purposes, including procurement of essential