Muktii has been able to reap it’s success because of the its simplicity and the fact that it works only to serve the poor. Anyone who has the unconditional intention to help the poor in the best way possible can initiate their own system and become Instigators in the fight against poverty. The most important part is to find a person in the locality of the poverty stricken area to act as Regulators to carry out the aims of the Instigator.

The Muktii system uses interest free loans to give the poor the means to bring themselves out of poverty in a dignifying and effective manner. It is for this reason that Muktii gives loans and not just free charity. We hope to show you the fundamental aspects of Muktii so that you may see how it is a simple and much more effective way of alleviating poverty.

Many charity techniques do not provide long term aid to the poor. In fact, charity methods such as the providing of food aid make the poor dependant on this aid for sustenance.

However, by giving loans to the poor with the condition that it is paid back does not coax any form of dependency. They rely purely on their own hard work to use the given resources as means to become masters of their own lives.

 

In this way they can bring themselves out of poverty in a respectable and self-esteemed manner; giving them the basis to financial prosperity and enabling them to pay back the loan so that the same money can further benefit someone else.

This cycle of money is what is able to raise Muktii far above many other charity systems: That the resources that drive the system are used a limitless number of times. Therefore, if you, for example give $100 to a charity, once it has been used to help the poor, that is the end of it’s effectiveness. However, if you use that money as a loan and spur the small business of a poor person, not only are they able to gain financial stability, but you will have that $100 back in your hands, ready to help someone else in need.

 

Another way that Muktii is able to rise above many other Charity Organisations is the way that it is able to navigate around all of those “administration” costs that siphon off the actual amount of money that goes forward to help the poor.

 

In communities where the Muktii system has been established, there are Regulators, people that would once receive loans from the Instigators, who are now in charge of distributing and collecting the loans from the people in the surrounding area. People in need of a loan come to the Regulator, and because these Regulators have experience in the way in which the system works, they are able to guide those people through the process. (Note: not everyone who asks for a loan gets one- the Regulator does research into their background and refers back to the Instigator- more information later)

 

The Regulators collects and holds the repaid money of the Recipients and keep it temporarily with themselves. They then benefit from using this collected money for their own needs with the agreement that whatever money they use, they return for the next redistribution of the loans.

In this way, money is not lost through the administration works of the Regulator, however there still remains a strong incentive for them to carry on this role.

The specific role of the Regulator is also what is able to make Muktii into a unique and outstanding charity system. Because they are chosen from the community in which the system itself works, they will have a good deal of knowledge about the people and their work. As a result, their role is not just to hand out and collect loans, but also help people if there are having problems with their project.

We put emphasis on the fact that Muktii is in place to serve the poor and help them out of poverty. So unlike many other microfinance organisations, there is an adjustable time period for the repayment. It is made to be lenient and fit around the people’s livelihood. The Recipient-Regulator relationship enables the Instigators to give as much support to the poor as is possible.

It is for these reasons that Muktii is able to rise above many other Microfinance and charity Organisations. The Muktii system’s success lies in its distribution of loans for the sake of creating independence and its ability to provide them without interest by eliminating the cost of administration. But most importantly, it is Muktii’s core goal to serve the poor and help them to gain their own freedom that enables Muktii to be such an outstanding charity system.

If you would like to become Instigators in the fight against poverty go to Guidelines for an Instigator for an in depth view of the Muktii system.