PRAYAS has been working on various development activities since 1998. Apart from the various non-financial development activities, PRAYAS since beginning is also active in mobilizing community for savings and credit services. It has been forming SHGs and encouraging them for savings and also internally revolving the savings. Since 2002, the organisation started linking its SHGs with various Banks. This was started as it was realized that internal savings were not enough to fulfill the credit needs of the groups. Internal savings of the groups had also reached the critical mass to attract bankers to lend to them.

Gradually, PRAYAS realized that linking SHGs to bank took a long time and as the bankers were still not very sensitized and comfortable in lending to SHGs, it altogether remained a difficult process. To counter the situation PRAYAS decided to have its own microfinance programme wherein it would borrow from the external sources and on-lend it to SHGs. Hence, it started lending in a small way in 2005 from Dahod but microfinance was taken up as a major activity only from April 2006. PRAYAS is also continuing with SHG-Bank linkage, although PRAYAS, as a policy, does not lend to SHG, which have been linked to Banks. This is just to maintain clarity of operations and avoid any confusion at the group level.


PRAYAS envisions a society where people have better social and economic opportunities with access to financial services and awareness of rights and duties”


“Unite socio-economically deprived people, empower through economical and social interventions to 150,000 households by 2015”
(Contribute to UN MDG )


  1. To develop Community Based Organisation (CBOs) of mainly women, which will be the primary forums for majority of interventions of Prayas.
  2. To establish a sound and professional micro finance programme to provide access to financial services to those who presently lack it.
  3. To strengthen CBOs by making them aware of their rights and empowering them to assert these rights to protect themselves against any form of exploitation.