Vol. 11, Special Issue 10 (2022)

Author(s):
Monica Singh and Sandeep Deshmukh

Abstract:
The micro-financial SHG-Bank Linkage Programme (SHG-BLP) has crossed the milestone of 10 million SHGs and covered more than 120 million families. Despite its remarkable growth; quality, sustainability and impact of SHG microfinance are the key issues. This calls for a profound and holistic analysis of how microfinance impacted sustainable rural livelihood security (SRLS) by other factors. We have developed a composite SRLS index representing nine components and several indicators. A random sampling technique was employed in choosing SHG households. A 'mixed method of research' was adopted to collect data on the pre-SHG and post-SHG situation of the '240' sampled households. The study indicated a positive and significant impact of microfinance on sustainable rural livelihood security of the SHG households. The SHG microfinance acted as an instrument for lifting pro-poor from ‘below poverty line’ to ‘better-off’ level on SRLS index. The sustainable rural livelihood security of SHG household depends on their monthly income, information sources, training received, microfinance borrowed, loan repaid, loan outstanding and attitude. It is an important policy recommendation that policymakers, microfinancing institutes, technocrats and development professionals may consider these significant variables to improve sustainable livelihood security of rural poor, especially in low and middle-income countries like India.