Moving from Microcredit to Livelihood Finance
This paper describes two case studies from Andhra Pradesh, India that were part of CARE, India's Credit and Savings for Household Enterprises (CASHE) project. CASHE aimed to build capacity of partner organizations (NGOs/MFIs) to deliver innovative microfinance products and services to the poor. To study CASHE operations and results, CARE chose two partner organizations in Andhra Pradesh, Modern Architects for Rural India (MARI) and Krushi. Krushi staff worked with the local community to develop land and adapt farming techniques. They consolidated individual farmer's plans, worked out total costs and decided on community-level works.MARI promoted mutually-aided cooperative societies (MACs) and offered financial services through them. It also became involved in sustainable management of natural resources, sustainable agriculture, integrated watershed development, community forest management and tank restoration. The paper states that while there is no shortage of livelihood finance options, poor people need assistance to access and invest these funds to improve their livelihoods. It concludes with practical recommendations regarding the formation of resource centers and imparting financial information and training.
