Agricultural Credit as Microfinance to SHGs to Realize Economies of Scale in Latur District of Maharashtra — An Economic Analysis

This study conducted in Latur district of Maharashtra has examined the impact of microfinance through SHGs on the socio-economic status SHG-members. For study, all the members of 12 SHGs were selected making a total of 130 respondents. The study has revealed that in the total sample, 56 belonged to the young (1–3 years) SHGs and 74 belonged to old (4–7 years) SHGs. Activity-wise, 52 respondents were undertaking goat rearing and 78 buffalo rearing. The per family employment generation was less in goat keeping than in buffalo keeping activity. The study has observed a positive impact of joining SHGs on the income of respondents, resulting in higher expenditure on food, travelling, recreation, education, and housing, etc. The recovery of loan was found about 74 per cent for the bank and about 62 per cent in SHG. The amount of saving per member per year was found as 970.