Group Lending Scheme Operating Through Primary Agricultural Credit Society: A Critical Assessment
IUP Journal of Managerial Economics, August 2010
23 Pages Posted: 29 Aug 2010 Last revised: 9 Jan 2015
There are 2 versions of this paper
Group Lending Scheme Operating Through Primary Agricultural Credit Society: A Critical Assessment
Group Lending Scheme Operating Through Primary Agricultural Credit Society: A Critical Assessment
Date Written: June 30, 2010
Abstract
The basic objective of the paper is to identify the effectiveness of group lending based microfinance programme operating through Primary Agricultural Credit Society to improve the economic condition among the rural participants in two blocks of Hooghly district in West Bengal. Here to do the impact study we have considered both Difference-in-Difference and First Difference Method with the help of longitudinal data and it is applied to minimize the possibility of selection bias during the time of drawing samples. It came out from field survey that very few marginal farmers had taken credit from their respective groups for agricultural purposes. Results reveal that there has been no significant impact of microfinance programme in terms of improvement of the outcome variables among the member households in spite of low interest rate charged on loans, high repayment rate within groups and small size of self-help groups. The reasons responsible are lack of skill-based training programmes for the members of groups and lack of marketing facilities to promote and sell the products produced by the members of self-help groups. The only positive aspect is the members can now protect themselves from the crunches of professional money lenders who charged exorbitant interest rates.
Keywords: Microfinance, Self-Help Groups, Joint Liability Credit Contract
JEL Classification: Q14, G21, I38
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Miracle of Microfinance? Evidence from a Randomized Evaluation
By Abhijit V. Banerjee, Esther Duflo, ...
-
The Miracle of Microfinance? Evidence from a Randomized Evaluation
By Esther Duflo, Abhijit V. Banerjee, ...
-
By Dean S. Karlan and Jonathan Zinman
-
By Dean S. Karlan and Jonathan Zinman
-
Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
By Suresh De Mel, David J. Mckenzie, ...
-
Are Women More Credit Constrained? Experimental Evidence on Gender and Microenterprise Returns
By Suresh De Mel, David J. Mckenzie, ...
-
Where is the Missing Credit Card Debt? Clues and Implications
-
A Structural Evaluation of a Large-Scale Quasi-Experimental Microfinance Initiative
-
The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence
By David Roodman and Jonathan Morduch