The Myrada Experience

Myrada was implemented in India in 1968 and aims at helping the rural poor living below the poverty line. Myrada concentrates on a wide array of fieldsincluding community healthcare, resettlement, development of women and children and rural savings and credit.

Myrada’s savings and credit scheme includes 1685 small groups ,ade up of 25 or less of the scheme’s rural poor beneficiaries(July 1991 statistics).

The scheme manages 24 million rupees, 6 million rupees if which is made up of the beneficiaries’ own savings.

Myrada’s savings and credit scheme targets the rural poor living below the poverty line as their prime concern.

At the inception of the credit scheme, the methodology and criteria used to identify the poor families was based on studies made and formats designed by institutions and individuals specialising in such activity.

Later, Myrada used the participatory appraisal method which has proved to be more effective.

The target group is required to fulfill several criteria in order to become loanees.They must compulsorily save a considerable amount in order to be eligible for credit. The beneficiaries are encouraged to save and with the savings habit, they are taught to cultivate the habit of thrift which helps them cut down unnecessary expenditure and develop their savings.

Every group, to be considered as loanees must show that regular weekly meetings have been held with attendance at an average of over 75%.

Basic books and records such as Attendance Registers and Minute Books must have been kept and must be in order. If a group is unable to keep such records due to lack of knowledge, Myrada staff help the group with their records until one member acquires the skill.

Literacy and numeracy are also important and the groups must be able to read, wrote and count. At first Myrada gave priority to literacy but the beneficiaries wanting to read numbers and figures written in their pass books required numeracy skills, which then became the priority.

Once all these pre requisites are fulfilled, the beneficiaries are considered prospective loanees and are ready to receive and use their loans.