Microfinance and Human Development in Kerala

15 Pages Posted: 1 Mar 2020

See all articles by Francis Kuriakose

Francis Kuriakose

Erasmus University Rotterdam

Janssen Joseph

St. Berchmans College

Date Written: January 30, 2020


This paper examines how microfinance institutions impact human development indicators using the case of Kerala in southern India. The study uses an institutional approach to understand microfinance institutions with the help of three variables - core activities, total loan portfolio and approach to microfinance. The impact of microfinance institutions on four human development variables namely education, health, income and participation are analyzed. The main conclusion of the study is that microfinance institutions that follow an integrated approach impact human development more than those that follow a minimalist approach. Furthermore, this impact of microfinance institution is due to production functions that generate income and protective function that defends against vulnerability. Therefore, an integrated approach to microfinance has income generating and risk mitigating effects that translate into better human development indicators.

Keywords: Microfinance, Human development, Financial inclusion, Social welfare, Kerala

Suggested Citation

Kuriakose, Francis and Joseph, Janssen, Microfinance and Human Development in Kerala (January 30, 2020). Available at SSRN: https://ssrn.com/abstract=3526668 or http://dx.doi.org/10.2139/ssrn.3526668

Francis Kuriakose (Contact Author)

Erasmus University Rotterdam ( email )

Burgemeester Oudlaan 50
Rotterdam, 3062

Janssen Joseph

St. Berchmans College ( email )

Kottayam, Kerala 686101

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