Self Help Groups
Agriculture for small and marginal farmers requires timely and affordable credit to cover the variety of input and other costs. Rural moneylenders that dominate the informal credit market readily offer loans to the farmers with little paperwork at a rate of interest as high as 60% per annum.
The inability to repay such a loan leads to the beginning of a vicious cycle where the borrowers can even become bonded labourers of the moneylender. In this scenario, a formal and timely source of credit with better terms of repayment has enabled many members to break from the shackles of intergenerational debt bondage. A savings programme enables the poor to extricate themselves from the clutches of usurious moneylenders. The Trust in almost every area in which it has interventions has tried to introduce the concept of SHG’s and has resulted in vast improvement to the standard of living of the populace.