One of the prime needs of small-scale fisherfolk is credit. Under a “coastal village development project” initiated by the BOBP in Adirampattinam, Tamil Nadu, India, in 1981, the credit needs of fisherfolk were determined and a scheme was formulated under which a nationalised bank would lend Rs. 1,000 each to 100 fishermen for the purchase of nets. Fish marketing loans were given to fisher-women by a voluntary organization, the Working Women’s Forum (WWF) and also by the Fisherwomen’s Extension Service of the Fisheries Department.

The project and its activities have been described in an earlier paper (BOBP/WP/19 - “Coastal village development in four fishing communities of Adirampattinam, Tamil Nadu, India” by F. W. Blase). The present paper evaluates the impact of the loans for fisherfolk (both project loans for fishermen and those provided for fisherwomen by the WWF and the Fisheries Department.) The paper studies the usefulness of the loans and the rate of loan repayment. It attempts to analyse the success of the strategy of “group formation” for loan distribution and for development.

The Coastal Village Development Project and the loan evaluation study which is the subject of this report are activities of “Development of Small-Scale Fisheries in the Bay of Bengal,” a project of the BOBP. It started in 1979. It is funded by SIDA (Swedish International Development Authority) and executed by FAO (Food and Agriculture Organization of the United Nations). Its main goals are to develop, demonstrate and promote appropriate technologies and methodologies to improve the conditions of small-scale fisherfolk in member countries — Bangladesh, India, Malaysia, Sri Lanka and Thailand.