The Mahila Bank was formed when the women’s SHG at Mhaswad realized that they had reached the limits of a SHG and needed more funds to move up the economic ladder. But no bank would lend them the money they required. Therefore they decided to start their own bank. Beginning with a capitalization of Rs. 6,00,000, the bank has grown to Rs. 3,00,00,000.

With 2,100 members, the bank works towards enabling poor women to get loans in areas that other banks would not touch. For example loans for buying garden umbrellas for vegetable sellers who found their income decreasing because they were staying at home following sunstrokes. Or for buying vegetables to trade with.

The bank is run entirely by the women of that area who had to teach themselves banking. When it started with 600 members, hardly 10 of them could sign their names and the RBI rejected their proposal. These women taught themselves to read and learnt how to fill in registers and other statutory compliance norms. Today, the RBI issues policies keeping in mind the requirements of Mahila Bank.