There was not much of training for the village development committees as part of capacity building. 3.5 People s Participation in the Management of Seed Money. But in the CMCs, a few financial institutions provide credit to the poor people due to their lack of collateral. Seed money serve as an incentive for the poor villagers as a revolving fund to finance their IGAs. Seed money is provided to the beneficiaries in the form of loan.
Seed money is used as an entry point in most of the projects.
Most of the countries also encourage thrift as a necessary component so that the revolving fund could be increased. This has been used to finance various income-generating activities. There are four issues, which are fundamental to the sustainability of seed money. Our experience indicates that the seed money is basically used for income generating activities. However, some countries, in the past, used it for infrastructure and for purchase of agricultural implements for communal use.