THE ROLE OF NBFCS IN MONEY LENDING AND DEVELOPMENT OF WOMEN'S SELF-HELP GROUPS IN DURG DIVISION: A COMPREHENSIVE STUDY

Non-Banking Financial Companies (NBFCs) have emerged as critical enablers of financial inclusion for Women’s Self-Help Groups (WSHGs) in India’s semi-urban and urban regions, including Durg Division. This study examines the role of NBFCs in providing credit access to WSHGs, assessing their impact on women’s economic empowerment, entrepreneurship, and group sustainability. Unlike traditional banks, NBFCs offer faster loan processing, flexible repayment terms, and minimal collateral requirements, making them a preferred choice for WSHGs excluded from formal banking. However, challenges such as high-interest rates (14–22%), over-indebtedness, and lack of financial literacy persist. Through a mixed-methods approach—analyzing loan data, conducting surveys, and interviewing stakeholders—this research evaluates how NBFC lending influences WSHG development in Durg, Bhilai, and Rajnandgaon. Findings suggest that while NBFCs significantly enhance credit accessibility, their long-term benefits depend on integrating financial literacy programs, regulating interest rates, and fostering partnerships with government schemes like DAY-NRLM. The study contributes to policy discussions on optimizing NBFC operations to ensure sustainable women’s empowerment while mitigating debt risks in urban SHG ecosystems.