The impact of a microfinance program via self-help group on household income: A case study in Aurangabad, Maharashtra state, India

摘要

The objective of this research was to determine the impact factors of participation in a microfinance program via a self-help group (SHG) in India on household income, controlling for age, educational attainment, land ownership and household debt. Wecompare two villages in India where participants joined SHGs at the same time. This research is based on a questionnaire survey administered to people in Aurangabad, Maharashtra state, India, an area that is considered very dry and is totally dependent on monsoon rainfall. We discovered that the microfinance program has a positive effect on household income, when women participate in it. Moreover, a participant’s household income is affected by the decision regarding which self-help group to join, andthe probability of increasing her household income becomes higher if she joins a self-help group that has a close, familylike atmosphere (with members of the same caste and religion) and a sense that members trust and know each other.