Despondency, lack of confidence, having no access to assets, no collateral and subjugated by local influential landlord, hardly any member of community can desire to be entrepreneur. Such venture is unthinkable. However if any member feels differently and assesses himself/herself to start some enterprise, he/she does not have access and reach to the Banks.
Commercial banking in Pakistan has claimed the boom in the sector. These Banks are flourishing with huge profits by only catering to the needs of top end influential lot of society who have the capacity to borrow but has never reached out to the poor of this country. They are denied the facility of small loans against social collateral, the one they have. They have no way to establish small and medium enterprise and start income generation businesses.
There is strong realization on the part of decision makers that prevalence of poverty must be reduced if not eradicated. It is also desired in the Millennium Development Goals which seek to eradicate extreme poverty and hunger. In keeping with it, Government of Pakistan and Government of Sindh have taken several initiatives with the help of donors. SRSO feels happy to be a partner in such efforts to address poverty. It is striving to achieve this goal in its target area.
Among other initiatives, disbursement of micro credit to the marginalized people has played an important role to help them to bring about some positive change in their plight. It has also played a key role in helping the poor get out of the clutches of private money lenders and traders.
SRSO’s Micro-finance Sector has functional responsibility for managing the microcredit component of SRSO. The Sector has focused on the identification of potential borrowers through a transparent and rigorous process, and aims for the sustainable delivery of financial services to the poor at household level. SRSO Micro-finance Sector has disbursed huge amount of credit or financed the number of professions i.e Livestock, Agriculture, Enterprise Development etc. It has a transparent system designed for proposals of expected borrowers, scrutiny of cases and disbursement and tracking of loans. The recovery tenure of the loan is based on the expected cash inflow to the borrower at the end of the economic activity.SRSO -MF's responsibilities include product development, staff capacity building and ensuring that credit funds are available to poor households through the Community Organizations. SRSOhave a online database information system and the successful implementation of this system has resulted in increased efficiency, out-reach capability, repayment behaviours and financial viability of the programme.
Rural Credit programme is fully dependent of social mobilization and each loan request is signed by at least 75% of the CO members, each member acts as a guarantor for all other members.
SRSO is an active member of the Pakistan Microfinance Network and have certification of Pakistan Centre for Philanthropy (PCP) .