Rural Finance and Risk Transfer Instruments
(II)Rural Finance and Risk Transfer Instruments
(a) Micro Credit for SHGs
The District Implementation Office (DIO) in coordination with Mahalir Thittam regularly grades the Self Help Groups (SHGs) and recommends them to banks for Direct Linkage. The bank staff are also sensitized on the about the rejuvenated SHGs, restructured Panchayat Level Federations (PLFs) and their performance in repayment. Exposure visits are also being arranged for the bankers, to meet the SHGs / PLFs and understand their needs so that the bank can extend timely credit assistance to the eligible groups.
(b) Risk Management and Insurance
Workshops on the risk management needs of the fishing community are conducted by the project. The Vulnerability Reduction Fund extends soft loans to the poor at the time of disasters. This fund is managed by the PLFs. The project contributes 4/5th share of the fund and 1/5th share is contributed by the community. Workshops on insurance help the community to decide on suitable insurance products. SHGs and the members of Fish Marketing Societies (FMS) are also given training on insurance. Insurance products covering life, health, personal accident, assets etc., have been identified. Thousands among the coastal population have enrolled themselves in these insurance policies.
(c) Establishment of Venture Capital Fund
The Venture Capital Fund would supplement the loans from banks to SHGs, fishermen societies and individuals. The fund will be managed by a professional financial entity that has the necessary skills to provide support for the nascent enterprises to make them successful