Micro credit is a financial service that provides small, collateral-free loans to low-income households, women, Self-Help Groups (SHGs), farmers, micro-entrepreneurs, and vulnerable communities to support income-generating activities, livelihood development, and financial inclusion. Microcredit enables poor and marginalized families to access formal financial services and reduce dependence on moneylenders.
Nabard (Nabfins) is a financial agency that provides Group loans to the Self Help Group members. CRDS is authenticated as business facilitator by NABARD Financial Service Ltd (NABFINS) from Feb 2017 and are giving loan facilities women SHG’s and they are benefited by receiving loans through NABFINS we have given Rs.22Cr for 344 CRDS women SHG’s and with the help of this the women SHG’s are during small scale business in a good manner which helps them in raising their standard of living. Nabfins have been providing loans at low interest rate at their door step and without any hurdles for the beneficiaries.
Commercial Banks, Regional Rural Banks (RRBs), Cooperative Banks, and Small Finance Banks provide microcredit mainly through the SHG–Bank Linkage Programme and direct lending schemes. These institutions offer credit for agriculture, livestock, petty trade, micro-enterprises, handicrafts, and other livelihood activities.
Objectives of Micro Credit
To provide timely and affordable credit to poor and marginalized families.
To strengthen Self-Help Groups (SHGs) and Joint Liability Groups (JLGs).
To promote income-generating activities and micro-enterprises.
To support women’s economic empowerment and financial independence.
To enhance livelihood opportunities in rural and semi-urban areas.
To reduce dependence on informal money lenders.
To improve financial inclusion through doorstep financial services.
To facilitate entrepreneurship development among rural youth and women.
To support SHG Federations and community-based organizations.
To create sustainable economic growth among disadvantaged communities.
