Though the initial focus of the Federation was to ensure the socio-economic development of the traditional fisherfolk by making the producer fishermen become owners of fishing inputs, leading to enhanced self-esteem & income, it soon became evident that a sustainable economic development of the sector would be possible only through a continuous financial support mechanism. There is a huge requirement for working capital in the sector , as the fisherfolk are not amenable to the habit of saving. This unrestrained way of life leads to a condition of perpetual indebtedness. Daily consumption needs, requirement of short term working capital for fish vending, requirement for special needs such as weddings, educational requirements, medical contingencies etc. lead the fisherfolk to the informal credit system where loan sharks ruthlessly exploit their vulnerability. The exhorbitant rate of interest on loans in the informal system  results in the fishermen family getting caught ina vicious cycle of indebtedness from which they cannot escape. In order to address this need of the fisherfolk and prevent income erosion the Federation initiated the formation of the self help groups among fishermen family members and encouraged them to set up  micro enterprises.  Credit linkages with  National Backward Class Finance & Devopment Corporation (NBCFDC) and National Minority Finance Development Corporation (NMDFC) at 6% interest per annum was arranged for the SHGs. Interest free loans to fish vendors was also arranged with the  support of state government. In the last seven years Matsyafed could facilitate the formation of  15888 self help groups and could give a loan of about 256 crores as micro credit.

The present status of the self help groups and micro credit is given below.