A Study on the Growth and Impact of the Microfinance Institutions in Chhattisgarh
Keywords:
Microfinance, Sustainable, Entrepreneurship, Rural DevelopmentAbstract
This paper aims to explore the role and efficacy of microfinance as a tool for poverty alleviation and socio-economic development, particularly in one of India's most rural states, Chhattisgarh. Rooted in the concept of providing financial services to marginalized populations, microfinance institutions (MFIs) have become pivotal in addressing financial exclusion and promoting entrepreneurship in underserved regions. This research evaluates the role of microfinance in Chhattisgarh by analysing its operational framework, economic performance, and socio-economic impact from 2020 to 2024, drawing on data from government publications, SIDBI reports, and MFIN India. The findings indicate a robust growth trajectory for microfinance at the national level, with loan portfolios increasing from ₹2,31,778 crore in 2020 to ₹4,20,000 crore in 2023. Aspirational districts, including Chhattisgarh, have significantly benefited, with the loan portfolio in these regions rising to ₹68,000 crore in 2023. Key drivers of this growth include targeted government initiatives such as PM SVANidhi and MUDRA schemes, which have bolstered financial inclusion and economic recovery, particularly for rural women and small entrepreneurs. MFIs in Chhattisgarh have facilitated access to credit, enabling self-employment and income diversification among low-income groups. The study underscores microfinance's dual role in economic empowerment and community development. By fostering group cohesion and providing financial literacy, MFIs in Chhattisgarh have enhanced rural livelihoods and contributed to inclusive growth. The findings also emphasize the importance of sustainable practices and robust policy frameworks to address operational inefficiencies and ensure equitable access to microfinance services, promoting responsible growth in the sector.
References
1. Goyal, R., & Kumar, S. (2018). Microfinance and rural entrepreneurship development in India. Journal of Rural Development Studies, 35(2), 105-118.
2. Gupta, M., & Chauhan, A. (2017). Financial inclusion and rural entrepreneurship: A study of Indian microfinance institutions. International Journal of Financial Studies, 6(1), 45-60.
3. Singh, P., & Verma, A. (2019). Microfinance and rural development: A sustainable approach. Sustainable Rural Development Review, 4(3), 201-215.
4. Mishra, R., & Singh, K. (2020). Impact of SHGs on rural entrepreneurship in India. Journal of Entrepreneurship and Innovation, 8(1), 123-139.
5. Kumar, A., & Sharma, P. (2016). Microfinance and women entrepreneurs in rural India. Women Empowerment Journal, 12(2), 87-99.
6. Sinha, R., & Roy, D. (2017). Challenges of microfinance institutions in rural India. Journal of Financial Studies, 19(3), 178-192.
7. Desai, A., Mehta, S., & Patel, V. (2018). Microfinance for livelihood enhancement in rural India. Journal of Development Economics, 29(2), 55-69.
8. Chakraborty, S., & Sen, R. (2021). Microfinance and poverty alleviation: The rural perspective. International Review of Social Sciences, 7(4), 92-108.
9. Das, S., & Mukherjee, A. (2019). Inclusive growth through microfinance in rural India. Journal of Inclusive Development, 15(1), 34-50.
10. Verma, S., Prasad, N., & Rao, G. (2018). Evaluating the effectiveness of microfinance programs in India. Journal of Economic Policy and Research, 22(3), 67-85.
11. Johnson, S., & Rogaly, B. (1997). Microfinance and Poverty Reduction. Oxfam.
12. NABARD. (1992). Self-Help Group (SHG) – Bank Linkage Programme: A Pilot Project Report. NABARD Publications.
13. World Bank. (2023). Country Classification by Income.
14. Lazar, D. (2008). Economic Dimensions of Microfinance: Emerging Trends and Perspectives. Dominant Publishers.
15. Premchander, S. (2009). Microfinance in India: The State of the Sector. SAGE Publications.
16. Asian Development Bank. (2000). Finance for the Poor: Microfinance Development Strategy. Manila: ADB.
17. Ledgerwood, J. (1999). Microfinance Handbook: An Institutional and Financial Perspective. Washington, D.C.: World Bank.
18. Littlefield, E., & Rosenberg, R. (2004). Microfinance and the Poor. Finance and Development, 41(2), 38–40.
19. Robinson, M. S. (1998). The Paradigm Shift in Microfinance: Building Financial Systems for the Poor. Institute for Development Studies.
20. Sen, A. (2008). Microfinance: Emerging Trends and Challenges. NABARD Publications.
21. Bateman, M. (2010). Why doesn't microfinance work? The destructive rise of local neoliberalism. Zed Books.
22. Etzensperger, C. (2013). Microfinance market outlook 2013. Responsibility Investments AG.
23. Ghate, P. (2007). Indian microfinance: The challenges of rapid growth. Sage Publications.
24. Guha, S. (2007). Microfinance for microenterprises: An examination of growth and sustainability issues. Journal of Developmental Entrepreneurship, 12(3), 375–389.
25. Guha, S. (2013). Regulatory challenges in Indian microfinance. Economic and Political Weekly, 48(20), 38–45.
26. Kar, A. K. (2016). Growth and trend of microfinance in India. Economic and Political Weekly, 51(12), 61–68.
27. Mader, P. (2013). Rise and fall of microfinance in Andhra Pradesh. Development and Change, 44(5), 973–997.
28. Sharma, P. (2006). Rural credit in India: Growth and risk analysis. National Bank for Agriculture and Rural Development (NABARD).
29. Taylor, M. (2001). Microfinance in the neo-liberal era: Between social mission and commercial expansion. Journal of International Development, 13(6), 957–970.
30. Wichterich, C. (2012). The microfinance promises in financialized times: A gender perspective. Development and Change, 43(3), 817–842.
