Financial Inclusion

Why is this important?

Financial inclusion is a tool to empower the marginalised sections of society with access to affordable credit. This in turn gives them better access to basic education, health services and provides improved opportunities to start independent business ventures so as to achieve financial self-­reliance.

How does it work?

We provide access to loans and other financial services to our SHG members of women and men. One of the most important sources of lending is internal lending that is raised from the monthly savings of members of AVAG’s SHGs. For all external loan linkages the approval of the executive committee of the Federation is mandatory.

  • SHG’ members have also access to the revolving funds of the Federation and AVAG and are helped to get loans from the banks.
  • The Men’s and Women’s Federations play a major part in the decision-­making process for loan approval, awarding loan amounts gradually and increasing the members’ repayment reliability.
  • Group members are encouraged to give priority to those in need rather than dividing the borrowed amount into equal shares.
  • Financial inclusion program provides a forum for members to build their social conscience and define their own principles of ethical lending.

Impact Numbers

Internal Lending
Direct Lending

Stories Of Hope

Revathi came to this village with her  husband and was living in a rented house. All of a sudden the landlord asked her to vacate the house.Her husband stopped working and they had 2 children. She tried to get a loan to create a stable source of income from different places but they all wanted it paid back in 1 or 2 instalments. 

Someone recommended joining an SHG to her. She asked if she can join although she isn’t a native on this area and they said it’s okay. After joining in 6 months she got a small loan and began selling small blouse bits.With the second loan she started to sell sarees. Then she started a shop and developed it.

“My husband has a hold in life and he sits in the shop to help me. Earlier he had no work and was aimless in life. I am not a native to this area but I was still able to join the women’s club and access the benefits, and now I have succeeded in my business. I also have a son who is now doing his 3rd-year graduation.”
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