PIEDAR initiated a micro-credit program with three models of micro-finance for the poor from 1995, the key elements of which are described below:
• Credit to individual poor under social guarantees;
• Credit to solidarity groups after requisite savings; and
• Promoting community organizations as Micro-Finance Operators.

In all the approaches, PIEDAR targeted the poorest of the poor, defined as households with incomes less than two thousand rupees per month. The loan amounts varied from Rs.7,000 to 15,000. Community based organizations of men and women successfully operated the small saving and loan schemes for several years. The project distributed five million rupees to 463 individual, 34 solidarity groups of five to eight persons each, and two community organizations. Rs.4.2 million was recovered as principal and mark up, while Rs.1.8 million remained outstanding.

PIEDAR conducted detailed case studies of the reasons for default. A major reason for default was either the borrower falling ill or expenses on healthcare in his/her household. The theft of goods was another reason. Thefts were frequent in the localities of the poor.