ANALYZING SELF-HELP GROUP-BANK LINKAGES THROUGH VOLUME OF SAVINGS AND CREDIT: INSIGHTS FROM THE NORTH EASTERN STATES OF INDIA

Abstract

This study aimed to determine the impact of microfinance in the North Eastern States of India, with a specific focus on Tripura State. Secondary information was collected from various published sources, supplemented by primary data gathered from 20 self-help groups (SHGs) selected using a multistage stratified random sampling technique. The analysis of the collected data revealed that Tripura Grameen Bank provided the highest amount of loans to the SHGs, which primarily engaged in crop enterprises, vegetable cultivation, dairy farming, goat rearing, pig farming, and fishery. On average, the amount of loan and subsidy received was Rs. 1.56 lakh and Rs. 0.82 lakh, respectively. The quantum of savings per SHG was calculated to be Rs. 1.03 lakh. Of the total credit amount, 87.35 per cent was allocated to agriculture and allied activities, leading to the establishment of various micro, medium, and small entrepreneurial initiatives, which in turn fosters the growth and development of entrepreneurship.