Analysing the financial performance outreach of the micro finance institutions and its impact on household welfare using retrospective panel data an empirical evidence from Punjab

Abstract

The present study analysed the performance of the NBFCMFIs newlineof India, examined the impact of microfinance on the welfare of its borrowers newlineand also studied the perception of the respondent borrowers regarding the impact of newlinemicrofinance on women empowerment and their livelihood and welfare. Chapter 1 briefly introduces the study, followed by a review of literature, theoretical framework newlineand hypotheses development in Chapter 2 and a detailed Research Methodology in newlineChapter 3. The results in Chapter 4 indicated that the Indian NBFC-MFIs lacked in newlinefinancial performance indicators but saw an increase in the outreach indicators. newlineSecond, while studying the impact of outreach on the financial performance of the newlineNBFC-MFIs, the results indicated that the dual goals of financial performance and newlineoutreach could be achieved together, and no trade-off exists. In Chapter 5, the author newlinefound a positive impact of microfinance on housing improvements of the borrowers, newlinebusiness set-up and improvement, purchase of durables and spending on family functions and medical emergencies. The results were either low or insignificant for the years before and after the credit take-up (treatment window estimations). In Chapter 6, the study found that the respondent borrowers newlineperceived a moderate impact of microfinance on women empowerment and moderate to high newlineimpact on the livelihood and welfare of the respondent borrowers. The mean scores did not newlinevary across different demographic variables. Finally, Chapter 7 summarised the results of the present study and gave recommendations for the policymakers and future research directions. newline newline