Savecred, a Savings and Credit Programme Implemented in Sri Lanka to Improve the Life Situation of the Poorest of the Poor - 1

Savecred is a savings and credit programme implemented in Sri Lanka by Redd Barna under its Save the Children policy.

The aim of Savecred is to improve the life situation of the poorest of the poor by providing credit facilities to them under special terms and conditions.

The credit and savings scheme also aims at improving the environment for the development of the child and at promoting the woman’s rightful place in society, thereby facilitating development and self reliance within the community.

Savecred focuses particularly on women and children. A prospective beneficiary must fall within one of five specific target groups in order to be accepted into the scheme.

The target groups are; 1. Landless families with 3 or more children and/or dependents whose personally acquired cash income is Rs. 750 per month or less and which receive government subsidies in kind.

2.Landless families with 3 or more children and/or dependents whose income is Rs.1000 per month or less and which do not receive any government subsidies inkind.

3.Small holder families whose net income from land is Rs.500 per month or less. * Within these target group families the first priority loanee is the mother of the family. Once this criterion is filled, the other members of the family become eligible.

4.Single mothers with children whose monthly income is less than Rs. 850 and who are landless or unable to cultivate land due to poverty.

5.Unemployed youth in any description of target family.

Eligibility to be within the target group is determined through a detailed form that prospective members haveto fill.

The acceptance of members who become potential loanees is done on the decision of the Community Development Coordinator(CDC).

The CDC compiles a list of prospective members in the different target groups within an identified area and interviews each person. The information so derived is filled into a specially prepared form known as the Eligibility Survey Form.

If the interview does not take place in the prospective member’s home, the CDC personally visits every home of every prospective member to verify the information gathered with regard to income and living conditions.

When the eligibility of a prospective member is confirmed, the CDC indicates thus in the Eligibility Survey Form which is then filed at the Project Office and the member is accepted into the credit scheme.