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Revolving Fund Management

Over the years, we have not only expanded our activities in more geographical regions but also have begun interventions in the fields of agriculture, animal husbandry and biodiversity as they are directly linked with people’s livelihoods. To meet various financial needs of village institutions and taluka level federations, VIKSAT submitted a proposal to Sir Dorabji Tata Trust, Mumbai to provide a Revolving Fund. Subsequent to this, a Revolving Fund of Rs. 50 lakhs was received from the Trust.

On receiving the Revolving Fund, it became imperative to form a management committee to effectively and efficiently utilize the fund. On the line of VIKSAT’s belief, it was decided to form the committee where people’s representatives were also involved in the management of funds. Keeping this in mind, an - eleven member - RFMC was formed with President and Vice President of the Sanghs, locally important persons and VIKSAT staff (field co-ordinators of Bhiloda and Satlasana field offices, Director and co-ordinator from Head Office) as its members with VIKSAT Director as its Chairman. This would also help in keeping the whole fund management, transparent.

The primary livelihood occupation in VIKSAT field areas is agriculture. But increasing frequency of drought condition in this region, livestock rearing has emerged as second important activity for livelihood support. This is evident from the above graph where it could be seen that around 65% of loan amount is taken for livestock related activities which generates secondary income for them through dairying. The arrangement of Revolving Fund has also strengthened the agricultural activities in the region. As can be seen in the above graph, second major purpose of availing loan is for seeds and fertilizer. It is clear in the above chart that TGCS members have availed loan mainly for agriculture and livestock related activities while SHGs where women are involved, the loan is mainly taken for food grains and micro-enterprise activities.

We have made simultaneous efforts to develop rapport with the State Bank of India for providing loans to people. This loan would be particularly preferred for high value activities such as cattle and check dams (where possible). This strategy would help us to reach out to a larger number of people with the available VIKSAT Revolving Fund, because loans for cattle require very large money and involves risk. So far, 4 SHGs have taken loan from the State Bank of India for a check dam and purchase of cattle.

There has been appreciable change towards improvement in the livelihoods of the people due to the Revolving Fund as given below. Quantification of impacts is being planned.

• Due to the increase in animal strength, increased income per household

• During drought condition also, less negative effect on agriculture yield due to availability of timely and good quality seeds and fertilizer through this fund

• Less dependence on local money lenders due to easier and cheaper availability of fund without mortgaging anything

• Restoration of standard of living by release of mortgaged agriculture land using the Fund money

• Improved status of women in the family due to their equal share in fulfilling the basic needs of the family as well as in supporting the family during economic crisis

• Development of the attitude of regular repayment of loan among people due to the feeling of ownership and appreciation of the concept of the Revolving Fund.