Role of Self-Help Groups (SHGs) and Microfinance in Enhancing Rural Credit Flow in Korba District
- Basant Kumar, Research Scholar, Department of Commerce, Dr. APJ Abdul Kalam University, Indore (M.P.)
- Prof. (Dr.) Janvi Chandwani, Professor & Pro HOD, Sage University
Introduction
Access to timely and adequate credit remains a persistent challenge in rural India, particularly for small farmers, landless laborers, women, and informal workers. Despite the expansion of formal banking networks, a significant segment of the rural population continues to depend on informal and exploitative credit sources. In this context, Self-Help Groups (SHGs) and microfinance institutions have emerged as powerful instruments for enhancing rural credit flow, promoting financial inclusion, and strengthening grassroots-level economic participation.
Korba district of Chhattisgarh presents a unique rural–industrial interface, where mining and industrial growth coexist with agrarian and tribal livelihoods. While industrialization has generated economic opportunities, rural and tribal households still face constraints in accessing institutional finance. SHGs, particularly those promoted under NRLM (Aajeevika Mission), have played a crucial role in mobilizing savings, facilitating microcredit, and linking rural households with formal banking institutions. The present study was conducted to examine how SHGs and microfinance mechanisms have contributed to improving the flow of rural credit in Korba district and to assess their effectiveness in addressing financial exclusion.
DOI link – https://doi.org/10.69758/GIMRJ/2511I10VXIIIP0005
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