Microcredit through Self-help Groups: Does it Improve the Income of Tribal Farmers of Meghalaya?

The study has analyzed the performance of self-help groups (SHGs) and has assessed the impact of micro-credit through SHGs on income of tribal farmers from agri-enterprises in Meghalaya. The data were collected from 60 SHG members from 10 SHGs in two districts of Meghalaya. The sample SHGs were found to be in existence for the past 4.3 years. On an average, 52.88 per cent members from each group had received training on income generating activities. The reasons identified to join SHGs were: opportunity to save (60.0%), credit facility (58.3%), generation of additional income (48.3%), and improving standard of living (38.3%). On an average, the external loan amount disbursed per SHG was found to be 82300. Out of this total amount, 51.64 per cent was utilized for group income generating activity. The repayment rate was found out to be 80.14 per cent. The regression results have shown that the external loan has a positive impact on the income of SHG members through participation in agriculture-based SHGs, but the important aspect is the magnitude of income generated from the micro-enterprises.