Malkangiri: Neighbourhood banking services through watershed projects have helped tribals earn their livelihood. They have brought in remarkable change in their financial condition during Covid pandemic in Malkangiri, a report said.
Tribals in 10 villages of Mathili block in the district no longer go to banks for loans or take loans from private money lenders as special banks established in their villages under the projects have come to their help.
They take loans from these banks and repay the amounts within the time frame without interest. The tribals have displayed remarkable behaviour in financial prudence and have become an example for others to emulate.
This remarkable change has come at a time when the pandemic has wreaked havoc in the lives of people by rendering them jobless.
Establishment of these banks in their neighbourhoods has helped them to stand on their own legs and earn a livelihood for their families. These informal banks use revolving funds available under watershed projects to lend to the tribals.
According to available reports, these banks have so far sanctioned Rs 1.5 crore to 1,086 tribals in 10 villages of three panchayats. Last year, over Rs 70 lakh was disbursed to tribals from the revolving funds of the project.
This has ensured food security and livelihood for the tribals Reports said these banks were established by forming special water conservation committees in the villages.
These committees supervise the functioning of the banks and sanction loans to people. After their establishment, they have given away loans ranging from Rs 15,000- Rs 20,000 to every family in all the 10 villages.
The loans have been sanctioned to the villagers for agriculture, small businesses, poultry farming and livestock farming. The tribals have invested the loans in their respective businesses and repaid them within six months without any interest.
Last year, during the first wave of the pandemic, funds over Rs 15 lakh to Rs 20 lakh from the revolving fund of watershed projects were pooled in Mathili, Kutanipalli, Dalapatiguda, Chaulamendi, Ambapada, Dhoudaguda, Chedenga, Kadapadar, Bayaguda, Sindhabeda and other villages of Mathili block to start the banks.
The loans were sanctioned to tribals after making them sign a contract for repayment of the loans within a period of six months.
When contacted, Pramod Kumar Behera, assistant director of soil conservation, said over 1080 tribals taking loans had repaid the amounts within deadline.
The scheme will be implemented in other villages in coming days and will be expanded to other blocks in phases. This has given us the hope that financial inclusion and livelihood enhancement can be achieved through community participation, he added.
PNN