Revolving Credit Program – Consolidated Group and Center Information as of March 2007

Security Fund

In order to cope in the event of death of the borrowers a fund has been created. This deducts one per cent of the borrowed amount, which is named as the security fund. This is a kind of insurance savings scheme. Borrowers are allowed to withdraw this money from the project when leaving the project permanently or after three years of continued membership in the group.

Outcomes

It is to be noted that many of the member borrowers have shown good entrepreneurial skills; they are now coming up with demands for loans for equipment that increase their productivity, helping to break the cycle of poverty.

On the other hand, the hardcore poor were not benefited much from this intervention. There is a need to devise new approaches to reach the hardcore poor. All these points stress the need for an evaluation of the performance of the ongoing credit program of the organisation.