Experience from large scale projects shows access to repeat finance, at affordable price, for desired amount and customised repayment terms is crucial for poor and vulnerable group of the society, to meet their consumption, exit debt trap and investment in livelihood assets.
Based on the eligibility criteria, the mission would provide financial support to the institutions of poor with intent to inject financial resources into the institutions of poor for meeting their credit needs for both for consumption purposes and also for investment in livelihoods promotion. This fund would be eventually a corpus /capital resource for institutions of the poor. The poorest and the most vulnerable groups would be given priority for capital subsidy. Largely this fund is expected to be used for on-lending to the SHGs for providing financial assistance to meet their livelihoods other essential needs. The state will strategise the routing of the financial assistance to the institutions of the poor both in the intensive and non-intensive blocks within the overall guidelines provided in the NRLM ‘Framework for Implementation’.