Economic Development

Villupuram district is one of the most backward districts of Tamil Nadu having the second  lowest per-capita income in the state, with a decline in income levels of people each year. Our working area, Vanur Block, is a reserved constituency since it has more Dalit population that the state average. While agriculture laborers contribute to 29% of the work force in Tamil Nadu, it is 49%  in this region. These factors speak for the lower economic conditions of this block.The main occupation in the bio-region is farming and the harsh climate of the region causes prolonged drought-like conditions along with an increase in dependency on farming inputs like of chemical pesticides and fertilisers has pushed several local inhabitants to abject poverty.
 

Securing financing is also a major problem as, “access to credit from organized financial institutions is still a distant dream for many small and marginal farmers.” Furthermore, “the rural sector is burdened with high-interest credit provisioning by moneylenders.” We have seen firsthand the role high-interest rates play in stifling development as many beneficiaries have been charged upwards of 30% interest on loans from private financial institutions.

What is Economic Development?

This program aims at financial inclusion and fair practices to increase economic opportunities and to strengthen the livelihood base of the communities program.

How do we intend to achieve this?

We support enterprise development initiatives though training in various skills and access to finance.

"My daughter got good marks in class 12. My husband asked her to stop her education and send her for work. I tried to get loan from friends and family but no one helped. Through the club I came to AVAG because the fees was to be paid the next day. AVAG gave a grant immediately."
Nagavalli

Financial Inclusion

We are particular about ethical practices in finance and are sensitive to not only the needs of the group members but also to their overall financial well-being. Therefore, we have well defined loan policies that record the purpose of a loan and ensure its timely repayment.

AVVAI

A permanent revolving fund to financially support the education of girl students of deprived families from rural and marginalised communities in Vanur Area.
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