|
Organisation
|
Five
projects under the Sukhi Baliraja Initiative
(SBI) |
| |
Maharashtra
Institute for Technology Transfer for
Rural Areas – Nashik (MITTRA) |
| |
DILASA,
Yavatmal |
| |
Chetana
Samaj Seva Mandal (CSSM), Yavatmal |
| |
Vikas
Ganga Samajsevi Sansthan (VGSS), Yavatmal |
| |
Swayam
Shikshan Prayog(SSP), Mumbai |
|
Project
name
|
Promoting
financial literacy and bridge financing
for ensuring financial inclusion of
distressed farmers in five districts
of Vidarbha |
|
Grant
operationalised
|
November
2010 |
|
Duration
|
2
years |
|
Grant
amount sanctioned
|
Rs7.56
million |
Activities within
the grant:
The projects aim to improve the socio-economic
condition of families through enhancing
the access of farmers to various financial
services from formal financial Institutions
at an affordable rate. Various existing
institutions in the project villages will
play an important role in reducing the influence
of money lenders in the area by providing
supportive financial services. These institutions
will also reduce the existing exploitative
system of supply of inputs through agents
and will be grouped together to facilitate
a better relationship between the farmer
and bankers. Groups, as a system of mutual
aid, will facilitate sharing and support
between members in changing the existing
exploitative nature of the financial services
in the region through instilling financial
discipline among all its members. This will
in turn change the income-expenditure ratio
of farmers and will result in positive cash
flow for the household.
The key components of the project include:
|
|
Diagnosis
of the extent and nature of the problem,
so as to design and develop a mitigation
strategy for 17,500 farmers from 175
villages from five districts |
|
|
In the short run,
enabling timely credit for agricultural
purposes through bridge financing mechanisms,
in order to reduce the agricultural
stress of 3,500 distressed households |
|
|
Building and strengthening
a conducive banking environment and
ensuring financial inclusion of farmers |
|
|
Educating around
17,500 farmers on the need for financial
planning and discipline to sustain linkages
with formal financial institutions through
trainings of para-workers on financial
literacy and counselling and organising
awareness and finance camps in the project
villages. |
The project is expected to lead to:
|
|
Availability
of supportive financial services to
17,500 households |
|
|
Enhanced accessibility
to formal financial institutions; altogether,
village institutions will leverage loan
funds of Rs50 million from banks |
|
|
8,000 members
of various CBOs in the project area
will learn to incorporate financial
planning in their daily routine |
|
|
The models of
bridge financing with 3,500 farmers
would demonstrate the need for timely
credit by banks. The above outcomes
will lead to reduction in the dependence
of farmers on the exploitative sources
of credit for agriculture purposes.
The interventions would enhance the
farmer’s accessibility and affordability
to various financial services in the
project villages. |
|
