Showing posts from November 17, 2009

MICRO FINANCE– A Udyamita Vidyapeeth’s Experiement (DRI)


The experience after training rural youth at Udyamita Vidyapeeth, Deendayal Research Institute’s Rural Entrepreneur Training Centre at Chitrakoot, showed that, after training, except for raw material based industries, no individual was able to set up need based industries due to a lack of To overcome this problem, Udyamita Vidyapeeth, drew out project proposals for the rural youth to have them avail of bank loans. However, none of the youth wanted the loans. They listed various difficulties, including the payment of interest, as the reason for their reluctance.
Udyamita Vidyapeeth realized that the funding requirements of a majority of the applicants were minor. From donations received by the Institute, Udyamita Vidyapeeth opened a bank account under the name ‘Swavalamban”, to advance interest free micro loans to those in need.
The methodology to ensure repayment and zero default was as follows:

1. Meeting in the village, attended by the villagers and Samaj Shilpi Dampati of…