"It is a big achievement that we could distribute such a large amount in a small area. The beneficiaries are poor people including fishermen. The loan was given without any collateral but there was not a single default in repayment," says a Valiyathan.

Madusoodanan Nair concurs: "We paid around Rs.18.3 million to 2,168 people under the scheme in eight branches and the repayment was about 98-99 percent."

While the bank provides term loans through neighbourhood groups, individuals get loans through bank account.

"For neighbourhood groups we even provided loans up to Rs.200,000. The bank fixes the loan for a group based on the savings mobilised by the thrift societies," says Valiyathan.

For the loans availed of under Snehagramam, the repayment comes to around Rs.50 a month on a loan of Rs.10,000.

"In Chemancheri people cooperate well with the bank. They have a special affection towards the bank," says Valiyathan.

The proof of the strong bond the bank has forged with the poor is displayed in the chairman's chamber - a citation from a grateful Chemancheri panchayat for freeing it from the clutches of moneylenders.