The Centre has been promoting credit linked Biovillage models for effective and successful rural credit management and development. This facilitates a credible partnership with private and corporate sectors for technical and sustainable market support through the Community Banking Programme.

The Community Banking Programme was launched in 1998 as a support service for improving livelihood options among the community. It provides interest free loans to small and homogeneous group of men/women having a similar socio-economic background. The groups could be either in the form of Self Help Groups (SHGs) or Farmers’ Association.

The loans are provided from the micro-credit banks set up under this Programme with the generous contributions from the members of Friends of MSSRF, Tokyo and Friends of Swaminathan, Australia.

Credits extension is an empowerment process by which the groups are able to take up eco-enterprises and also use the funds for leveraging additional resources.


The advantages of Community Banking are:

• Need-based credit
• Timely and effective support
• Low transaction cost
• User-controlled revolving fund
• Credit accompanied by appropriate services

Micro-credit is extended mainly for market-driven micro-enterprises through a process of mobilisation, organisation, technology incubation and capacity building. The micro-credit is given as interest-free loan by entering into a legal agreement with the group. Repayment period is based on the nature and gestation period of the project. The group repays the loan from the income generated by the micro-enterprises started by them. Some of the aspects looked into while providing interest free loans are determined by the following parameters:

• Environment friendliness
• Cost-effectiveness
• Economic viability
• Increased job opportunities
• Empowering women

Currently the Programme supports 223 groups, comprising of more than 3,000 individuals involved micro-enterprises. The activities are diverse in nature the details of which are provided under Micro Credit Banks.