Urban microfinance practices in national capital region, India

Abstract

Microfinance is a tool for inclusive growth, income generating activities, livelihood security and reducing poverty. Geographical area covered for the study was Najafgarh area, South West Delhi. Inferences and conclusions were drawn based on primary data that were gleaned through field survey. Urban microfinance has not been as pervasive as its rural counter parts. SHG bank linkage model is apt for effective delivery of microfinance service in urban areas. In the study area mean age of sample group is 37.8, years and average size of the household is 4.71. 28.3% of sample women members are illiterate. 54% of the members were encouraged by friends and relatives to tag with SHG. There were 82.2% of SHGs have membership size is 20 and 83% members have availed loan. 17% of loans were utilised for investing in microenterprise or business expansion. Average annual return per group is Rs.5774, that of Rs. 296 per member. Average annual income and expenditure were Rs. 70144 and Rs. 60789, respectively per household and mean savings per household is Rs. 9346. About 94 percent of members have acquired sundry asset and 91 percent of the members satisfied with the services of the facilitating NGO, MYRDO.