Title: Assessing the determinants of microfinance in India: a case study of the joint liability groups of the Northern Karnataka region

Authors: Anushree D. Kini; S.V. Patil

Addresses: School of Management Studies and Research, KLE Technological University, BVBCET Campus, Hubballi, Karnataka, 580031, India ' School of Management Studies and Research, KLE Technological University, BVBCET Campus, Hubballi, Karnataka, 580031, India

Abstract: One of the substantial challenges in ascertaining a sustainable financial system of the country is the inclusion of the marginalised and the underprivileged sections of society. Therefore, to serve the purpose, microfinance emerges as the key concept. Hence, this study attempts to address the feasibility of microfinance and joint liability group in India by investigating the antecedents and determinants of microfinance in the five districts (Dharwad, Gadag, Vijaypur, Bagalkot, and Belagavi) of the Northern Karnataka region. The study findings implicate that microfinance services of the SFBs had improved the socio-economic condition of the vulnerable population, predominantly the female. It has also resulted in enhancing the employment opportunities for the JLG members. However, the study finds a significant challenge of accessibility, affordability, and operational perspectives in delivering financial services to the JLG members. Henceforth, the study proposes the need-based planned implementation of microfinance in rural areas to achieve complete financial inclusion in India.

Keywords: joint liability group; microfinance; small finance banks; women empowerment; India.

DOI: 10.1504/IJEF.2022.122179

International Journal of Electronic Finance, 2022 Vol.11 No.2, pp.143 - 158

Received: 11 Sep 2021
Accepted: 26 Nov 2021
Published online: 11 Apr 2022 *

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