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

19

This is applicable to the delivery structure

taken

for

report

preparation.

as well as the cost coverage.

Streamlined systems and regular analysis

helps in efficient fund management.

Team work: All concerned staff need to

understand the importance and role of

Future plans

microfinance

services

in

the

The coming years will bring additional

development paradigm. The role of the

challenges for SVY. Besides increasing the

team is very important. Roles and

uptake, hand-over of the activity has to

responsibilities at various levels should be

be started.

clearly

identified

to

optimise

performance. The field teams with their

Increasing the role of cooperatives:

regular interaction with participants help

Currently, the credit under SVY is given

in identifying needs, appraise the

directly by Dhruva to the GVMs. Over

capacities of the borrowers before

the next three years, the cooperatives

forwarding applications to Dhruva's loan

will be taking over the SVY programme.

committee,  ensure  availability  of

To ensure a smooth transition and for SVY

technical support and ensure timely

to be successful at the cooperative

repayments. The central team at the

level, the capacities of the cooperative

programme  office  ensures  timely

management committees will have to

availability of material and funds,

be built and systems and procedures will

develops new schemes, analyses the

have to be set in place.

programme to make improvements and

Capacity building: One of the reasons for

develops capacities. Hence all the staff

strengthening of the SVY programme is

involved need to understand and

the focussed workshops with concerned

perform their roles for the success of the

teams. Hence capacity building, which

programme. Laying down parameters

is a continuous process will be focussed

and regular feedback to the teams on

on, for all levels (staff, field functionaries,

their performance vis-a-vis parameters

participants).

helps improve programme quality.

New credit schemes: In keeping with the

A process of regular review of all aspects

needs of people, new schemes will be

of the programme with the field teams

developed to ensure that the SVY

ensures that the programme continues

programme continues to support the

to meet the needs of the people.

livelihood needs of the people

Close control on overdues is required.

Improving repayment rates: Though the

Regular follow up by the field teams and

repayment rate is 96 per cent, constant

central team is required for providing

efforts will be needed to improve it further

guidance and support to help the

through analysing the design of the credit

participants repay on time.

schemes, improving systems further, etc.

Systems and procedures: Clear-cut,

Additional Financial services: Given the

written  rules  and  regulations  are

laws of the land, Dhruva cannot collect

necessary along with a process of

savings or provide their own insurance

quarterly/half-yearly

review

and

products. Hence the effort has been to

modification where required. Copies of

encourage savings with the GVM or with

the rules in local language should be

the banks where possible. This role of the

given to all concerned. There should be

Roles and

GVM will be further strengthened. For

no ambiguity where onlending is in the

insurance services, in addition to asset

responsibilities at

picture and documentation should be

insurance linked with certain credit

various levels

complete in all respects. Documents like

schemes like pumpset and cows, a

Loan cards with dates and amount of

should be clearly

combination of asset plus life insurance is

instalment due if given to the borrower

identified to

being planned to be introduced in

improves repayment performance.

optimise

collaboration with an insurance service

performance

Software with loan tracking facility,

provider based on experience in other

generating regular MIS, reduces the time

programme areas.

Archana Rao

Archana heads Vikasarth, the microfinance division of BAIF Development Research

Foundation (www.baif.com). BAIF, an organisation dedicated to sustainable

rural development, was established in 1967 by a disciple of Mahatma Gandhi,

the late Dr Manibhai Desai. BAIF is implementing a multi-disciplinary rural

development programme over the past three decades with the objective of

providing gainful self-employment and sustainable livelihood to the rural poor at

their doorstep.

baif@vsnl.com