The Micro Finance program started taking shape in 1996 when CECOEDECON facilitated saving among women’s group by opening group accounts in banks. The organization started lending to groups as well as individuals in 1997 from revolving fund that had been built over the years through contribution from a number of agencies like the Rashtriya Gramin Vikas Nidhi (RGVN), Inter Church Organization of Development Cooperation (ICCO), Inter-Cooperation (IC) and SIDA.

Meanwhile Mahila Action Samitis were formed in clusters of 10 villages. These action samitis were registered as under “Rajasthan Society Registration Act” for functioning as a federal body i.e. to provide support to Mahila Mandals and carryout the micro-credit activities. This Action Samiti covers the Mahila Mandals of ten villages. Executive Body has been constituted comprising of 11 women representatives of ten villages for smooth functioning and management of the activities of Mahila Action Samiti. The same process was replicated in Chaksu Block in 2001. Total 10 Action Samitis were formed.

The organization borrowed fund from FWWB and SIDBI in early 2000s for supporting Mahila Action Samiti. In the year 2002 organization got associated with the NABARD Program for Promotion and Linkages of 350 SHG in three districts (Tonk, Jaipur & Baran). The organization got support from SIDBI for the period of 1996-2003 for Capacity Building activities of SHGs and Staff. During the period a number of capacity building activities for SHG and Staff have taken place. During year 2000 Organization got assistance under DPIP for formation of CIG and other related activities (which was similar in nature as SHG promotion) in Two Blocks of Tonk (Uniara & Todaraisingh).

In the year 2003 a study was conducted titled “Micro Finance Operation by CECOEDECON: A Study on Strategic Option”. As per study report it was identified that the need for micro credit and other micro finance services in rural areas is acute. And there is need to ‘scale up’ its micro-finance operations. In order to achieve a ‘critical mass’ or to make a significant impact, there is need to give micro finance operations a specific focus in their scheme of things. At that point of time organization realized the twin goal of accessibility (to poor) and sustainability (of MFI). Different options regarding the same were critically analyzed and finally it was decided to go for Federal model at grassroots level and NBFC at Organization level.

Swarn Jayanti Gram Swarojgar Yojana (SGSY), BPL families were linked to this scheme in two blocks of Jaipur District. The project provided livelihood support to BPL families helped in bringing all BPL to the mainstream development. This intervention was successful and highly appreciated by the government.

Year 2004 was the turning point of the organization/ micro finance unit because of shift from SHG model to federal model for credit support. Looking into its sustainability, the organization decided to support the SHGs for credit through Federation so that this could be ensured on sustainable basis. As per first recommendation, in the year 2004, Cecoedecon successfully worked with 2 Multipurpose Cooperative Societies which had been registered in 2004 named Apni Sahkari Sewa Samiti Ltd. in Phagi and Rajasthani Mahila Sahkari Sewa Samiti Ltd. in Chaksu. These societies are providing hassle free loan to its members/SHG/individuals with less formalities as per their rules and regulation. The databases of the societies are managed with the help of financial software. In terms of their performance the loan recovery is 98 per cent till date.


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