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GROUP BASED MICROFINANCE AND ITS IMPACT ON RURAL HOUSEHOLDS IN RAYALASEEMA REGION OF ANDHRA PRADESH

KrishiKosh

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Title GROUP BASED MICROFINANCE AND ITS IMPACT ON RURAL HOUSEHOLDS IN RAYALASEEMA REGION OF ANDHRA PRADESH
 
Creator RAJESWARI, S
 
Contributor RAGHU RAM, P
 
Subject finance, participation, savings, credit, sampling, economics, costs, self help, marketing, manpower
 
Description The present study entitled “Group Based Microfinance and its Impact on Rural Households in Rayalaseema Region of Andhra Pradesh,” was undertaken to study the SHG and MFI programme in microcredit funding, factors determining member’s participation in microfinance programme, cost of credit through self-help groups and joint liability groups and economic impact of microfinance on members.
The study was conducted in two districts of Rayalaseema region namely Kadapa and Kurnool. The data required for the study was collected using a well-defined and pre-tested schedule by the personal interview method. The detailed information was collected and it pertained to the agricultural year 2010-2011.
The average size of the self-help group (SHG) was 10.52. Most of the SHG members saved Rs. 50 per month regularly. Only 37.08 percent of the SHG members availed internal loans. The average amount borrowed through SHG bank linkage was Rs. 19,388, while it was Rs. 17,800 for the members, who participated in both SHG and JLG programmes and Rs. 19,961 for those participated in only SHG programme. The credit to savings ratio was 5.59 : 1. About 52.50 per cent of the SHG members used the loan for productive purpose. The repayment performance was 100 per cent.
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The average size of the joint liability group (JLG) was 4.7. The average loan amount borrowed through JLG was Rs. 16,494. About 47.50 per cent of the JLG members used the loan amount for productive purpose. Only 4.17 per cent was regular in repayment.
Social backwardness of the household, illiterate spouse, high family expenditure and higher level of debt had significant positive influence and members from other backward caste category, higher consumer assets, higher income and number of income sources had significant negative influence on member’s participation in JLG programme in addition to the SHG programme.
Social backwardness of the household, farming as main occupation, higher number of income sources and debt of the household had significant positive influence and age of the respondent and land holding had significant negative influence on participation in only SHG programme.
The cost of credit in the transaction between bank and SHG member stood at 14.04 per cent. Because of the Pavala Vaddi programme by the Government of Andhra Pradesh the actual interest rate paid by the member was 3 per cent. The cost of credit was 30.09 per cent for getting an allied loan through MFI, and it was 33.09 per cent for non-farm loan.
Participation in SHG programme increased the annual income, productive assets and family expenditure by 40.42 per cent, 62 per cent and 28.75 per cent and further participation in JLG programme increased the annual income, productive assets and family expenditure by 60.72 per cent, 131 per cent and 49.32 per cent over the non-participants.
The savings of the SHG members were 124 per cent more than the non-participants and there was no significant increase in savings by participation in JLG programme.
The values of Gini coefficient, coefficient of variation, Atkinson coefficient, generalized entropy measures and decile dispersion ratio indicated that inequality in income distribution was highest among non-participants and lowest among the members participated in both the microfinance programmes.
 
Date 2016-06-16T15:10:37Z
2016-06-16T15:10:37Z
2012
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67477
 
Language en
 
Relation D9336;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY