+91 - 471 - 2458606 matsyafed@matsyafed.in
Micro Credit Schemes
SELF HELP GROUPS, WOMEN EMPOWERMENT & MICRO CREDIT
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.
Sl No | Particulars | Amount |
---|---|---|
1 |
Total number of self help groups |
15888 |
2 |
Number of members in self help groups |
191222 |
3 |
Thrift generated by self help groups |
18.94 Crores |
4 |
Amount of thrift distributed as loan |
117.01 Crores |
5 |
Term loan distributed |
81.90 Crores |
6 |
Micro finance distributed |
323.79 Crores |
7 |
Interest free loan distributed to vendors |
148.36 Crores |
Total amount distributed to SHG's |
519.26 Crores |
The micro credit system has made a powerful impact on the dynamics of the financial management of primary cooperatives and helped to improve the income of the fishermen families. While the interest rate of informal money lending in fisheries sector ranges from 24 to 120% per annum , Matsyafed could organize the micro credit at 6% per annum and also provide interest free loans to fish vendors. This has forced the money lenders to reduce the interest rate charged on informal credit resulting in overall increase in the income levels of fisherfolk.