The Innovation of a “Revolving Fund”

Borkhad is located in Marathwada, Beed district. Few poor landless families had encroached on 54 ha of village grazing land, which was regularized by the government between 1993 and 1995. Classified as wastelands, these lands were undulated and degraded, and hence used for the grazing purpose by poor families of the village.

With 54.14 ha of ‘gairan land’ in Borkhad village was regularized in the names of 48 landless persons. However, they could not benefit economically as the conditions of the land was very poor. Therefore they used to migrate to earn a livelihood in the lean season.

An innovative concept of a ‘Revolving Fund’ was piloted in this village. According to this an interest free loan will be given to the beneficiary only for land development work. This system of a revolving fund has helped in making the beneficiaries own the project, actively participate in it and ensure its implementation. The concept of ‘revolving fund’ has captured the imagination of the target groups so much that even the funds earmarked as grants by the AFPRO project for the vermi-compost units as sprinker system, were sanctioned as loans by the VDC’s.

The success of the innovative concept was recorded with a large percentage of the loans being refunded and deposited in their bank. The presence of a “revolving fund” has empowered the target group to decide on the future development works they would like to introduce for their development and progress.

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