The microfinance activities have been initiated in order to facilitate the financial inclusion of the fisher folk community of Kollam, thereby addressing the lack of financial services for poor women and men of the community. Microfinance serves as an aid to engage the members in productive activities and grow micro-enterprises and plays a vital role in increasing participation in economic activities and decision making. The microfinance schemes of FCDP and TMS are carried out through the self-help groups (SHGs) which form part of FCDP and TMS federations. While membership of FCDP is for mainly for men, the membership of TMS is exclusively for women from the fisher folk community.
Small Savings Scheme intends to create the habit of saving among the members. These savings may be withdrawn by them at any time. Moreover, all the repayments are through these daily savings. The 223 SHG's are grouped into 19 sections and each of the sections have a field staff who visits the members daily to collect their savings. Daily visits also help to keep in touch with every member and ensure their full participation in all activities and know their needs and concerns.
Death of a person not only brings grief but also increases the financial burden of the family. Death Relief Fund is collected from the members of FCDP and TMS in case of the demise of a member. This fund can be claimed by the nominated kins of the deceased.
Under the various credit schemes, loans are made available to the members especially for self-employment activities. The SHGs sanction loans for the members on their request and the same is overseen and supported by the staff of FCDP and TMS.
Credit has been issued for various purposes such as business related to fishing like purchase and repairs of boats, nets and engines, vending of fish (both fresh and dry), for the setting up of and maintenance of shops (Petty shops, stationery, Tea Stall, Juice Stall, grocery, fish, kerosene, etc) and for running micro-enterprises like printing, studios, welding workshops, tailoring, automobile workshops, hairdressing saloons, flour making units, sale of cloth, making of candles, snacks, beauty parlour, hair salons, tailoring, workshops etc.