IMPACT OF MICROFINANCE ON INCOME THROUGH SHGs IN MADURAI DISTRICT

This study examines the responsibility of microfinance institutions towards changes in the livelihood practices of the borrowers. The study is based on both primary and secondary data. The primary data were collected from the women Self Help Group members in Madurai District of Tamil Nadu by using interview schedules. Considering a total of 120 borrowers of Madurai, the impact of microfinance on their lives has been observed empirically by applying different statistical tools. In this study, impact of micro finance on income. For this the impact analysis of pre and post SHG members’ situation has been taken. This study contributes to the extant literature on microfinance by comparing pre-loan and post-loan phases and identified. Gini co-efficient of concentration ratio was used to measure the extent of inequalities in the distribution of income in the households of SHG members before and after joining SHGs. The upward shift in the Lorence curve towards the diagonal line for after joining SHGs, clearly shows that there is an improvement in the income inequality among the SHG members after joining SHGs. By considering the appropriate framework and approach, this study is explicable towards policymakers for designing further policies in this context and helps identify resources that need to flourish the current state in the future.