Initiate and encourage the process of collective capital generation through regular
savings by the community organization;
Promote self-reliance in the organization and improve the managerial skills of its office bearers;
Provide access to credit to the members of the organization;
Accelerate the process of economic development by promoting local investment and job opportunities in the future; and
Capacity building of the community organizations and holistic and integrated community development approach

It is a requirement that the rural poor, once they are organized, generate their own capital through a process of regular savings. The support structure nurtures a savings habit among the poor. At each meeting of the organization, members are required to save, no matter how small the amount. This amount is entered into their individual passbooks and deposited in the nearby scheduled bank in the name of the organization. The account is jointly operated by the office bearers of the organization.

It is a common phenomenon that in the past governments have allocated large sums of money for credit purposes, particularly for the small farmers, but very small amounts have actually filtered down. All this has happened while the market situation has been changing rapidly, implying that the rural poor have not been deriving optimum benefits from the availability of new farm technologies or from non-farm opportunities. The main reason for this situation stems from the nature of lending institutions; they simply cannot reach the millions of rural poor. This does not mean that the rural poor do not use credit;. For seasonal investments they need credit to make purchases of farm inputs. But in the absence of formal credit sources, they revert to the informal sector and enter into the "debt-trap" of money lenders, where the interest rates are, invariably, exorbitant and exploitative.

To overcome the high transaction costs impeding the flow of institutional credit to small farmers and the rural poor, a social innovation is needed that makes widespread banking operations possible. To provide the rural poor with credit at market rates, which are very low as compared to informal rates, and related inputs, a mediating structure is needed. The organization of the rural poor provides that structure. Experience illustrates that access to credit is not a panacea; related activities are also needed: inputs, management techniques, market information, etc. A package is needed of which credit is a key component.

This component of SRSO has renamed the micro credit as “rural credit” with differences of contexts and approaches. It has added “enterprise development”, as it largely encompasses the mandate to provide maximum opportunities to the beneficiaries. The Rural Credit & Enterprise Development Unit deals with the COs' members, who are in quest of financial resources to supplement their economic activities. It supports three areas i.e. Agriculture, Livestock and Enterprise (small informal businesses). The department is in access of all COs through social mobilization team of the field. There is a transparent system designed for proposals of expected borrowers, scrutiny of cases and disbursement of the loans. Recovery tenure of the loan is based on the expected cash inflow to the borrower at the end of the economic activity if it is time bound like agriculture/crop production for which he obtains the loan. Following are the durations for
different areas;