Role of Microfinance on Coastal Indebtedness in Marine Fisheries Sector of Maharashtra, India

Abstract

The Microfinance Institutions (MFIs) and Self Help Groups (SHGs) play a pivotal role in Indian marine fisheries sector in reducing indebtedness among marine fisherfolk. This paper makes an attempt to assess the extent of indebtedness among marine fisherfolk in mechanized, motorized and traditional fisheries sectors and the impact assessment of MFIs on coastal indebtedness in Maharashtra. The study was carried out in five coastal districts of the state. Situational analysis was done through participatory learning and action (PLA) in the selected locations and the sample respondents (n=600) were selected from mechanized, motorized and traditional sectors. The results showed that the levk1 of indebtedness of members of MFIs was less compared to non-members. In certain cases, eventhough indebtedness was more, the repayment capacity was found to significantly improve in MFIs. There is an extreme necessity of strengthening MFI ventures in the traditional, secondary and tertiary fisheries sectors in the state. A comparative assessment of the sources of credit, the purposes of credit and-the utilisation pattern of loans in the state also was undertaken to draw valid conclusions. It was also ; found that the MFIs were ranked better in most of the attributes in the perception of stakeholders compared to banks and non-institutional credit sources