Microcredit and Economic Decision of Borrowers: An Analysis

Micro-finance is still a far cry from meeting potentials as instrument of genuine economic development through the empowerment of the economic active poor. Hence it has been attempted to examine the impact of micro-credit and to ascertain how it contributed to the financial process of household benefits in Odisha. After two decades of impressive growth, there is slackening of growth in Women Self Help Groups bank linkage programme (SHG-BLP). It has reached saturation point in the southern states, the growth is muted in other states. The loan impairment rates are on the rise. Considering the matter paper has attempted to measure RRBs Micro-credit impact on economic decisions of the borrowers using data obtained from primary source. For the study, the researcher has considered the members of the Women Self Help Groups (WSHGs) as micro-credit borrower. To know the micro-credit impact on economic decisions three parameters have been considered i.e. control over savings, loans and income. Descriptive as well as inferential statistical tools have been used to get conclusion. The hypotheses for the study are tested with 95% of significance level. This study found that micro-credit has no impact on the household's economic decisions.