Gramalaya Urban And Rural Development Initiatives And Network (GUARDIAN) is a micro finance institution (MFI) and a not for profit institution with no capital, registered under Sec. 25 of Companies Act 1956 was came into existence from 6.11.2007 with its Administrative office at Raja colony, Trichy and it was promoted by Gramalaya NGO, which is pioneer in the field of water and sanitation for more than 2 decades in Tiruchirapalli District. It has the legal entity vide its Corporate Identity No. U 65929 TN 2007 NPL 65299. GUARDIAN is the first MFI in the world engaged in micro lending to the community who are lacking access to credit for the creation of individual toilet and water connection facilities as so many MFIs are engaged for the promotion of income generation, livelihood promotion and other consumption loan. With the support of nationalized banks, communities, NGO and donor agencies, Guardian has started its on lending to the poorer communities for the promotion of water and toilet facilities through women self help groups (SHG) and women joint liability groups (JLG) from March 2008 onward.

Many of the world's life-changing conveniences wouldn't be possible without utilities such as water and sanitation. In India, about two third of households are lack of easy access to water and sanitation facilities. Though Government has initiated several moves to combat unhygienic environment and hygiene unawareness among the urban and rural communities to use the public utilities, hygiene awareness among the communities are still lacking. The practice of open defecation by majority of people is one of the most serious threats to environment and public health. Failures to confine excreta safely are primary factors that contribute to the spread of diseases and infection through bacteriological contamination of water sources and transmission of pathogens through faucal oral route. Improved hygiene practices by entire communities including the use of sanitary toilets can effectively break this cycle of disease transmission.

Implicit in this is recognition of the need for the community to deal with the issues of affordability and the concerns of the poor households. Creating infrastructures on individual water and toilet facilities for their own become a neglected part due to financial constraint for such creations and pre conceived notions of high investment. Under these contexts, Gramalaya NGO, parent organization of Guardian MFI, which is pioneer in water and sanitation, has started its revolving fund activities in urban and rural for the promotion of household water connections and toilets facilities. This could be achieved through the experience and expertise gained through Institutional Development Support, exposure visits and trainings supported by WaterPartners International, USA (now water.org, USA). This has encouraged Gramalaya to promote GUARDIAN micro finance institution exclusively for water and sanitation.

From the experience gained from micro lending on water and sanitation, nationalized banks are very much interested to provide financial assistance to our MFI based on our tracking records. The members who availed water and sanitation loan (water credit concept, which was introduced by WaterPartners International, USA through its India Liaison Office at Trichy) are promptly making loan repayment which shows their hygiene awareness motivated by the players engaged in water and sanitation sector. Interaction with the community in the new areas, we could see overwhelming demand for water and toilet loan because of the problems faced by way of collecting water from the water sources, time consumption in collecting water, searching for hiding places for defecation, hesitation in using public toilets, time consuming factors and problems experienced especially by women and adolescents by open defecation. They said that by water and toilet loan, they could relieve from the burdens hitherto experienced, one of the borrowers has said.

Project beneficiaries under water credit:

Guardian with its separate legal entity addressed the financial need of the community through on lending to the women self help groups and women joint liability groups in urban and rural with the loan fund mobilized from the nationalized banks. Accordingly, Guardian has mobilized a loan fund of Rs. 8.00 crores from Indian Overseas Bank, Thottiam and successfully reached 18,644 borrowers among 3575 women self help groups and joint liability groups with loan disbursement of Rs. 14.29 crores through our water credit in 9 blocks of Trichiraplli district and one City Corporation, for the infrastructure creation on household toilets and drinking water connections. By direct linkage with HDFC bank, Guardian has facilitated to provide Rs. 2.30 crores as loan to 2529 members from 160 women self help groups in the aforesaid project areas.

 Ratings & Awards:

Guardian has been rated by renowned rating agency, namely, Micro-Credit Ratings International Ltd., (M Cril) and got β + for its overall performance. Guardian has also been conferred with finalist award under National Urban Water Award – 2009 constituted by Ministry of Urban Development, New Delhi in collaboration with Administrative Staff College of India and GTZ by the Honb’le Minister of Urban Development Mr. Jaipal Reddy during Aug.09.

Guardian would provide water credit to 50,000 members for the creation of individual water and sanitation facilities within the period of 3 years from 2010-13 under water credit initiatives. Thus, Guardian could reach 50,000 families for easy access to water and sanitation facilities by the year ending 2013 and 250,000 members would be benefited indirectly. Guardian’s water credit concept would be spread over to the entire Districts of Tamilnadu by the year 2013.

In order to expand our activities among the marginalized and poorer societies in urban and rural villages, Guardian is in the process of seeking loan assistance from nationalized banks, commercial banks and other financial institutions.

Date: 31.03.2011                          
D. Paul Sathianathan,
Chief Executive Officer