Vol. 12, Special Issue 9 (2023)

Author(s):
Sandeep Deshmukh and Monica Singh

Abstract:
The SHG-Bank Linkage Programme (SHG-BLP) in microfinance has achieved a significant milestone, surpassed 10 million Self-Help Groups (SHGs) and encompassed over 120 million families. While its growth is commendable, the effectiveness, longevity, and influence of microfinance within SHGs are vital concerns. A comprehensive and thorough analysis is required to understand the extent of microfinance's impact on sustainable rural livelihood security (SRLS). We have formulated a comprehensive SRLS index, comprising nine components and numerous indicators. A random sampling method was utilized to select SHG households. Employing a 'mixed method of research,' data on the conditions both before and after SHG involvement were gathered from a total of '240' sampled households. The study underscores a positive and noteworthy influence of microfinance on the sustainable rural livelihood security of SHG households. Microfinance within SHGs has served as a tool for elevating those below the poverty line to a more prosperous status on the SRLS index. The endurance of sustainable rural livelihood security for SHG households is intertwined with factors such as their monthly income, sources of information, received training, microfinance utilization, loan repayment, outstanding loans, and attitude. Consequently, a significant policy suggestion emerges that policymakers, microfinance institutions, experts in technology, and development practitioners should consider these crucial variables to enhance the sustainable livelihood security of the rural poor, particularly in nations with modest to middle-level incomes like India.