Role of NGOs in Credit and Savings

Janarth is a credit programme implemented by Action Aid in India.

The credit scheme is operated among small and marginal agricultural families but concentrates on families whose landholding is less than 3 hectares or 7.5 acres.

The programme places emphasis on credit to women who make up more than 55% of the loanees.

In order to give priority to women, the programme sets out specific terms for obtaining loans, especially family loans. In order to obtain a family loan, the application must be submitted by the woman in the family who must obtain the loan in her name. Or where a loan is sought to be obtained by a male in the family, the prospective loanee must obtain written consent from the woman in thefamily. The rule is strict in that where written consent is obtained by a prospective male loanee, the consent must be given in the presence of a programme officer.

This rule is explained as not being a move to improve the credit system per se but as an attempt to help women improve their status in the decision making structure within the family.