Subsidy Impact on Sustainability of SHGS: An Empirical Analysis of Micro Lending Through SGSY Scheme
Indian Journal of Agricultural Economics, Vol. 64, No. 2, April-June 2009
13 Pages Posted: 27 Jun 2010
Date Written: March 2009
Abstract
In sustaining rural livelihood sustainability of micro–credit intervention is highly essential, which warrants a study on SHGs. Very recently the micro-credit movement through the conduit of SHGs in North-east India has been gaining momentum with the implementation of SGSY scheme. The empirical evidences collected through a primary survey from the state of Meghalaya offer some clues towards the possible impact of financial subsidy provided through this scheme on sustainability of SHGs. Negative impact of subsidy on the important self-sufficiency indicators is clearly visible. Improvement of recovery rate holds the key for reducing or phasing out the much needed subsidy in the long run.
Keywords: Subsidy, SGSY, Impact
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