Determinants of Microfinance Outreach in India: Empirical Evidence

Using a panel data on the Microfinance-Bank Linkage Program (2008–2015), this paper examines the determinants of the program’s outreach. The results indicate that microfinance outreach has not been a key indicator for addressing economic and social issues. The study underscores that the program favo...

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Bibliographic Details
Published inApplied economics quarterly Vol. 66; no. 2; pp. 165 - 178
Main Authors Saravanan, Sivagandhi, Shanmugam, K. R.
Format Journal Article
LanguageEnglish
German
Published Berlin Duncker & Humblot Gmbh 01.04.2020
Subjects
Banks
Developing countries
Economic growth
Financial institutions
Financial services
Households
LDCs
Low income groups
Microfinance
NGOs
Nongovernmental organizations
Outreach programs
Poverty
Rural areas
Securities markets
Self help
India
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Summary:Using a panel data on the Microfinance-Bank Linkage Program (2008–2015), this paper examines the determinants of the program’s outreach. The results indicate that microfinance outreach has not been a key indicator for addressing economic and social issues. The study underscores that the program favors income-rich rather than poor states: the average loan is correlated with higher per capita income and high economic growth at the state level. Literacy, NPA, and bank ownership also matter in determining microfinance outreach.
ISSN:1611-6607
1865-5122
DOI:10.3790/aeq.66.2.165