Vision Building-a Sure Way to Facilitate Sustainable institutions for the Poor

13

Livelihoods through Credit

- Dhruva's Micro finance experience

D

hruva, a Society promoted by BAIF

for development to self-reliance by

Development Research Foundation,

drawing on their resources.

is implementing various development

programmes in the tribal areas of south

Sahabhagi Vikas Yojana

Gujarat. One such programme is the

Comprehensive Tribal Development

The Sahabhagi Vikas Yojana (SVY),

Programme (CTDP) in the Valsad

initiated in 1998-99, mainly focuses on

(Dharampur and Kaprada talukas) and

livelihood promotion and is implemented

Dang districts of south Gujarat. This

through  village-level  organisations

development  programme,  geared

called Gram Vikas mandals.

Typically, access

towards a a holistic approach, is spread

to a bank would

over 162 villages covering more than

Credit Schemes

mean covering a

13,000 tribal families. The programme

distance of no less

helps tribal families through livelihood

Based on the livelihood needs of the

than 20 km over

supporting activities such as horticulture,

people, various credit products and

agriculture, water resource development

hilly terrain and a

schemes have been developed. These

etc. and to improve the quality of their

loss of one full

schemes can be broadly divided into

lives through focus on community health,

working day.

four major groups:

sanitation,

hygiene,

women's

empowerment, capacity building and

On farm activities: Farm implements,

1.

awareness-raising

activities.

Seeds, Fertilisers, Nurseries etc.

Microfinance is an important component

of the programme enabling the tribal

Water  Resource  Development:

families to attain a greater degree of self-

2.

Pumpsets, Pipelines, Water tanks, Pot

sufficiency.

drips, Spring development, Lift

irrigation etc.

The tribal villages are scattered over a

remote hilly region. Traditionally, tribals,

activities:

Micro

used to living off the bounty procured

3.

Non-farm

enterprises, Agro Service centres, etc.

from the forests in the region and did not

feel the need for savings. Dwindling forest

cover and subsistence on rainfed

Livestock : Cows, Poultry, Goat

4.

agriculture put the tribal population

under tremendous pressure for survival,

quite often forcing them to migrate to

:

YOJANA (Scheme)

COW

supplement their meagre incomes.

1. Unit

:

1 Cow

Savings for the tribals as such are possible

2. Total Loan

:

Rs 15,000

only through deferred consumption

(Fifteen

rather than surplus. Besides, in these

thousand

remote, backward areas, existing credit

only)

infrastructure is limited to a few branches

3. Advance to

of regional rural banks. Typically, access

be deposited :

Rs 2,000 (Two

to a bank would mean covering a

thousand

distance of no less than 20 km over hilly

only) towards

terrain and a loss of one full working day.

w

i

t

h

Institutional credit is thus not an option

application

worth considering for many tribal families.

insurance

premium  for

three years

Microfinance was made part of the

4. Service charges

:

10.00

%

+

programme design of CTDP, both for

GVM Rate

improving the access of the people to

5. Loan repayment

financial services and for empowering

period

:

Three  years

people to sustain the development

(Including four

activities post grant-based programmes.

month

Dhruva's microfinance activity was

moratorium

named Sahabhagi Vikas Yojana, which

per year for

directly  translated  would  mean

dry period of

development through partnership. As

cow

the name suggests, this development

6. Instalments

:

24 (Monthly)

requires the participant's contribution.

7. Eligibility criteria

The Sahabhagi Vikas Yojana is the logical

next step from dependence on grants