Influence of Financial Inclusion and Financial Self Efficacy on the Credit Behaviour of BPL households

The government of India has introduced various schemes to promote the level of financial inclusion of the poor people. Financially included people will get more opportunity to use and learn about basic financial products. This will definitely improve the financial knowledge and financial self efficacy. The improved level of inclusion enables the poor to access the credit facility offered by the organised channels and thereby the risk and cost associated with the credit will be reduced. But the access to formal credit depends on the credit behaviour of the public. The researchers tried to establish a linkage between the level of financial inclusion, financial self efficacy and the credit behaviour of BPL households in central Kerala. It is established that credit behaviour of the BPL households are significantly influenced by the level of financial inclusion and the level of financial self efficacy.