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

17

The demand for a scheme has to be

Challenges

substantial or material procurement will

Dhruva has faced and continues to face

be expensive. The possibility of providing

many challenges over the years of

funds for these needs of the people is

implementation. Some of the challenges

being examined.

were due to the programme design

adopted and some due to the area of

In the case of loans for livestock, it is best

operation.

if the concerned farmer/GVM is directly

involved in the purchase. For micro

1.

Credit in kind

enterprises -- small shops -- cheques

were issued to a particular supplier from

One of the main highlights of the

where the shop owner was to collect

programme was also the cause of many

material. But often, material was to be

challenges, ranging from procurement,

collected from multiple locations,

distribution to fund management.

creating problems. Hence for livestock

Material purchase: Dhruva has stringent

and micro enterprise schemes, cheques

purchase procedures. This often resulted

are isued to the farmer/GVM i.e., credit is

in delays in credit disbursement. To

not in kind. But the end use of these loans

overcome this, the major products in

has to be very closely monitored.

demand  were  identified,  quality

manufacturers were listed, rates were

2.

Tribal area

fixed and on receiving applications, the

Some of the challenges which Dhruva

material was easily and quickly sourced

faced were due to the remote and

by Dhruva.

scattered area of operation. The villages

are spread over a large area. Travel in

In addition, the loan committee regularly

the area is difficult both due to the lack

followed  up  with  the  purchase

of transportation facilities and the bad

committee and ensured that there were

condition of the roads. Most of the

no pending requisitions. A representative

villages do not have regular electricity

from the programme office was also

nor

are

they

linked

to

the

nominated to the purchase committee

telecommunications network. Hence,

to  ensure  there  were  no  other

planning for capacity building, record

bottlenecks.

checking or any activity requires huge

The quality of inputs is also an important

effort in terms of taking the message to

issue as credit is involved and there

the concerned persons. All plans have

should be no excuse for defaults. Hence

to be made well in advance to ensure

only standard, certified products are

that information reaches in time, as

sourced.

changes cannot be made easily.

Literacy levels are also very low and

Material Distribution: All transactions

hence a hindrance to calculation of

related to credit are handled from one

interest, instalments due, etc.

In addition, the

programme office. Given the spread of

loan committee

the area of operation, distribution to

There

are

many

Transparency:

regularly followed

each village is not possible as the

misconceptions among the people

up with the

transaction cost would be huge. Hence

about credit. Some believe that credit

purchase

the material had to be collected from

is available only at very high rates, are

committee and

the programme office, often resulting in

worried that they will be exploited and

ensured that there

delays in the material being received by

are not confident of being able to repay

were no pending

the participant. The programme office

the loan. This is based to some extent on

requisitions

was easily accessible only to some GVMs,

their past experiences. The village-level

for others, a godown was rented at a

Hisabnis is very important in ensuring

central location from where material

transparency in all dealings and in

could be collected on a specific day of

generating confidence among the GVM

the week. Additionally, once a week,

members. Tremendous effort goes into

material  was  delivered  to  the

building the capacities of the Hisabnis.

cooperative offices which were more

Given the level of literacy and the

accessible to the GVMs.

responsibilities to be shouldered at the

GVM level, developing a Hisabnis

Fund management: The requirement of

capable of maintaining the accounts,

a specific material might be around five

handling funds of the GVM etc., is a

units, but to make the transportation and

continuous effort requiring various types

other processing costs viable, about 10

of training with support from the Field

units are purchased. The extra material

teams. There is also a turnover in

purchased might not have immediate

Hisabnis,  necessitating  additional

demand, resulting in borrowed funds

capacity building efforts.

beings blocked without earning any

income.

Awareness: To increase awareness of

SVY, leaflets giving details of the schemes

Limitation in credit schemes: The people's

have been prepared and distributed,

demands are varied, but they often

Credit fairs were held where the people

cannot be met, as there might be no

from the nearby villages were able to

credit schemes designed for these needs.