A Study on the Growth and Impact of the Microfinance Institutions in Chhattisgarh

Dr. Satya, Prakash and Mr. Ish Kumar, Kewat (2024) A Study on the Growth and Impact of the Microfinance Institutions in Chhattisgarh. European Journal of Business Startups and Open Society, 4 (12). pp. 46-54. ISSN 2795-9228

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Abstract

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.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance
Divisions:	Postgraduate > Master's of Islamic Education
Depositing User:	Journal Editor
Date Deposited:	13 Dec 2024 11:00
Last Modified:	13 Dec 2024 11:00
URI:	http://eprints.umsida.ac.id/id/eprint/14844

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