Financing and Marketing Management

Unit 3- Fishery Financial Management and Insurance

3.3. Broad classification of sources of finance
Institutional and non-institutional sources
Under institutional sources

• Cooperative organizations:cooperative societies, cooperative banks (DCCBs)
• Commercial banks
• Others (like RRBs, govt agencies etc)

Non-institutional sources: Professional Money lenders, relatives and friends, etc.
Non Governmental Organization
As Non-Governmental Organizations work at the village level they become the Vehicle for donor agencies program implementation. They follow micro finance through Group-based Rural Finance Projects (GFPs) and Community based Resource Management Program. Some of the NGOs working in fisheries are Ramakrishna Mission, Lutheran World Service, Don bosco Society, Nehru Yuva Kendra. Kamala Nehru Trust, Tagore Rural Development Society. The importance or popular project getting momentum is the SHG that is Self Help Group
Private sector
They offer assistance through commercial banks and financial institutions, they are Informal banking system such as Credit Unions, Pawnshops, Saving and Credit association, Landlords, Moneylenders and Traders who lend money or in kind loans. Disadvantage in this system is higher interest rate.
Community or Groups
It is becoming popular. These are community based farmer groups, village associations and cooperatives, which are sources of funds for development. Much of the fund is generated through group savings. The best example is self-help groups (SHGs).
Non-institutional sources
It includes resources in the form of labour. As far as Indian Marine fisheries sector is concerned the access to finance goes in this order.

• Fish merchants (Middlemen)
• Professional moneylenders
• Money from relatives, chit funds or local savings
• Cooperatives banks
• State finance cooperatives
• Branches of commercial banks and regional rural banks