Strengthening of livelihood and economic base
To enhance economic sustenance among the grass roots, AREDS initiated movements - SWATE, PDM, OCAM, KDALU are promoting Savings and Credit Programmes. Members of SWATE and other men’s groups created by AREDS, by making use of the credit facilities offered by the Union Government Scheme (SGSY) have created for the rural poor self employments like vegetable vending, selling garments, producing and selling cleaning powder, perfume powder and incense powder, running footwear shops, rearing cattle and milk animals etc., In addition to this, AREDS is engaged in providing alternative employment opportunities to the rural poor in setting up units for manufacturing building material such as hollow block and mosaic.

From the beginning, the motivation for having the Savings Program was to enable SWATE to carry out its work without outside assistance, and secondly to bring material benefits to the members. However, it was the savings program that motivated many women to form sangams in order to be part of it. These women gradually became committed to the social goals of the SWATE movement, while the savings amount simultaneously multiplied.

By March of 1993, SWATE Savings’ scheme included 490 members whose savings amounted to Rs 58,000, which was deposited in the bank. SWATE was now in a position to loan out a considerable amount of money to a number of saving members. In the beginning loans were given to the members in the savings scheme to meet emergency needs such as hospital fees, legal expenses and funeral expenses. The Executive Committee of SWATE after detailed discussions, decided to arrange for credit facilities for women to enable them to generate income and make themselves economically self-sufficient.

In June 1993, SWATE succeeded in getting approval from the bank to give loans against the principal of SWATE Savings. It launched a micro-credit program for women members to support income-generating projects (SWATE Savings and Credit Program). The Executive Committee of SWATE decided that access to credit should be available equally for all the sangam with the following conditions. First, the loan had to be for income generation. The Second condition was that the recipient was active in her sangam and had been saving for at least one year.
Applications for loans would be made through the sangams to the administrative office of SWATE. The loan amount was fixed at 2,000 Rupees per member, to be given to one woman in a sangam at a time, with the President and the secretary being the last recipients. Decisions about, which person within the sangam should get a loan, would be a collective decision of the sangam members, who would in turn recommend the loan application of the concerned person. The sangam would make its decision by consensus on the basis of need and other considerations such as a woman's level of involvement in the sangam, her history of savings and the nature and merit of the request for loan. The Executive Committee would then pass on the application to the administrative office of SWATE for further assessment and approval.

The credit program operated as a revolving loan fund. Repayment of any loan, as well as the monthly collection of savings, was made through the sangam secretary to facilitate monitoring of recipients by the members of the sangams. The loan amount of Rs.2, 000 was to be repaid at 100 Rupees per month plus 10 Rupees interest within twenty months. Once 50% of a loan was to be repaid by a sangam, a new loan would be considered. This encouraged the sangam members to support and monitor the progress made by the individual recipients.

In the first year, a number of loans were made for the purchase of livestock such as milk cows, goats, sheep and chickens. By the end of that year, 90% of the loan beneficiaries were repaying their loans in time. The other ten percent of them were making delayed repayments but there was no defaulter amongst them. SWATE’s principal amount grew through the accumulation of interest.

SWATE soon learned, however, that access to low interest credit is not, by itself, enough to give women economic autonomy. The challenge to empowering women to take control of the money they earn from income generating projects is reflected in the story of Sarasu. Sarasu was the first woman to receive a SWATE loan and is now given the second loan to expand her growing flock of sheep. Yet, she still leaves to her husband the decision-making and handling of the money they jointly earn. To help the women acquire decision-making skills, the ability to handle money and plan a business venture are some of the issues where SWATE members need more training as they go on to take up larger ventures.

How the Credit Program Works
By 1994, there were 47 sangams participating in SWATE Savings with 388 women receiving credits ranging from 2,000 up to 6,000 Rupees. It became clear that close monitoring of loans by the sangam concerned as well as by SWATE would be needed to manage the increasing volume of loan amounts. Members were given training in handling money and management, and SWATE's administrative office operated more and more likes a bank, with formal processes and rules to be strictly followed. SWATE instituted a five-rupee fine per month for late payment, and laid down an expanded list of guidelines.