A study on repayment behavior of members of micro finance institutions- An empirical study in Udaipur district, Rajasthan

Microfinance has come to play a major role in many gender and development strategies because of its direct relationship to both poverty alleviation and to the empowerment of women. Women are the most crucial elements of the social fabric and are playing a pivotal role in the socioeconomic scenario in Rajasthan. Microfinance programs among the SHGs in India have been promoted for their positive economic impact and the belief that they empower women. Microfinance programs among the JLGs in India have been promoted for their positive economic impact and the belief that they empower women and also improve repayment to MFI. The survey was conducted on around 100 respondents from various JLGs of Udaipur district, Rajasthan and the analysis was done to study the loan profile of the members of MFIs and their repayment behavior. Chi square test has been used to find the association/non-association between variables and it was found that all the demographic determinants like age, marital status, education, ownership of house, type of family and number of family members affect the amount of loan taken by members, the loan repayment capability of members of MFIs and also it was found that demographic factors affect the reason of default done by members of MFIs.