Virutcham Revolving Fund Assistance
Access to financial services is crucial for reducing poverty and empowering poor communities. Permanent financial services enable marginalized families to manage small assets, which can significantly impact their survival, income, and overall well-being. By borrowing, saving, and investing, they can protect their families and plan for a better future. However, formal credit institutions often consider the poor unbankable due to rigid formalities.
Key Activities and Achievements
Providing Accessible Credit
The Virutcham Revolving Fund Assistance programme by MIDS offers rural poor families easy access to credit, especially beneficial for marginalized women facing challenges with formal institutions.
Enhanced Loan Amounts
MIDS increased the loan amount per SHG from 1.50 lakhs to 2 lakhs and the individual limit from 30,000 to 50,000, allowing beneficiaries to undertake more significant investments.
Rigorous Assessment and Monitoring
Before disbursing funds, MIDS assesses SHG performance and repayment history. All transactions are conducted through banks to ensure transparency and accountability.
Supporting Diverse Financial Needs
The revolving fund helps SHG members meet various financial needs, including business investments, healthcare, and education, enabling families to plan for the future and acquire valuable assets.
Impact
The Virutcham Revolving Fund Assistance programme has significantly benefited rural poor families by providing accessible credit tailored to their needs. By enhancing loan amounts and ensuring rigorous assessment and monitoring, MIDS has strengthened the financial resilience and self-sufficiency of marginalized communities.
