– Mohamed Atherulla Shariff
Bidar: In a remarkable example of ethical finance and grassroots development, small and medium traders in Bidar have demonstrated exemplary financial discipline by repaying their loans promptly and in full. This achievement, driven by the Karunya Society’s interest-free microfinance programme, was celebrated at a recent city event titled Community Connect Mission & Vision.
Abdul Jabbar Siddiqi, a key leader of Karunya Society, revealed a striking figure – 98% of loans issued to small traders have been repaid on time. To him, the statistic is more than a financial milestone; it reflects the honesty, sincerity, and perseverance of the beneficiaries.
“These traders were once trapped in debt cycles with exploitative moneylenders,” Siddiqi said. “Today, they are finally enjoying the full rewards of their hard work.”
Karunya Society operates 47 branches nationwide, disbursing nearly ₹1.25 crore in loans each day and supporting around 1.25 lakh families.
Branch head Mujtaba Khan detailed the local outcomes: over the past seven years, around 3,500 families in the district have benefitted from ₹60 crore in business loans and ₹2.4 crore in emergency hand loans. Beneficiaries – such as Panchsheela Garments, Pramila Tailor, Ravi Kani Footwear, Shiv Kumar Udaygir, and Faheem Qureshi – shared heartfelt testimonies of how the programme transformed their livelihoods.
Karnataka Minister for Municipal Administration and Hajj, Rahim Khan, praised the effort, admitting he had doubts when the society launched seven years ago.
“Many banks were struggling back then, and I wondered whether this interest-free model could survive,” he said. “But its growth and impact are nothing short of a miracle.” He commended the society’s volunteers for their selfless service, noting none take personal profit.
Former Managing Director of Bidar District Credit and Cooperative Bank, S. Kudre, underlined the programme’s significance, pointing out that many interest-based microfinance institutions are now in crisis. “An interest-free society with 3,500 active members thriving like this shows the model works – and India needs it now more than ever,” he said.
Dr. Abdul Qadeer, Chairman of Shaheen Group of Institutions, urged affluent community members to deposit surplus funds into Karunya Society to enable more interest-free lending. Similarly, Jamaat-e-Islami Hind’s city president, Mohammed Muazzam, proposed opening of a new branch in Bidar’s New Town to widen the reach.
Karunya Society’s model is proving to be more than a financial service – it is a movement built on trust, compassion, and shared prosperity. By empowering small traders to escape debt traps and build sustainable businesses, it offers a credible, humane alternative to conventional interest-based finance.
