Relief from usury: Impact of a self-help group lending program in rural India
Provision of low-cost credit to the poor through self-help groups (SHGs) has been embraced as a key poverty-reduction strategy in developing countries, but evidence on the impact of this approach is thin. Using a randomized program rollout over 180 panchayats, we evaluate the impact of a government-...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Elsevier
2021
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/142687 |
| _version_ | 1855529451481202688 |
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| author | Hoffmann, Vivian Rao, Vijayendra Surendra, Vaishnavi Datta, Upamanyu |
| author_browse | Datta, Upamanyu Hoffmann, Vivian Rao, Vijayendra Surendra, Vaishnavi |
| author_facet | Hoffmann, Vivian Rao, Vijayendra Surendra, Vaishnavi Datta, Upamanyu |
| author_sort | Hoffmann, Vivian |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Provision of low-cost credit to the poor through self-help groups (SHGs) has been embraced as a key poverty-reduction strategy in developing countries, but evidence on the impact of this approach is thin. Using a randomized program rollout over 180 panchayats, we evaluate the impact of a government-led SHG initiative in the Indian state of Bihar. Two years after the start of the program, we find a dramatic increase in SHG membership, borrowing from SHGs, and a corresponding decline in the use of informal credit. Fewer informal lenders are operating in treatment villages, and those who do charge lower interest rates. While these credit market impacts could lead to substantial improvements in economic well-being over time, the short-run impact of the program on such outcomes is modest. |
| format | Journal Article |
| id | CGSpace142687 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1426872025-12-08T10:11:39Z Relief from usury: Impact of a self-help group lending program in rural India Hoffmann, Vivian Rao, Vijayendra Surendra, Vaishnavi Datta, Upamanyu informal sector education lending gender women's empowerment impact evaluation empowerment poverty rural areas credit impact assessment women caste systems Provision of low-cost credit to the poor through self-help groups (SHGs) has been embraced as a key poverty-reduction strategy in developing countries, but evidence on the impact of this approach is thin. Using a randomized program rollout over 180 panchayats, we evaluate the impact of a government-led SHG initiative in the Indian state of Bihar. Two years after the start of the program, we find a dramatic increase in SHG membership, borrowing from SHGs, and a corresponding decline in the use of informal credit. Fewer informal lenders are operating in treatment villages, and those who do charge lower interest rates. While these credit market impacts could lead to substantial improvements in economic well-being over time, the short-run impact of the program on such outcomes is modest. 2021-01-01 2024-05-22T12:10:52Z 2024-05-22T12:10:52Z Journal Article https://hdl.handle.net/10568/142687 en Open Access Elsevier Hoffmann, Vivian; Rao, Vijayendra; Surendra, Vaishnavi; and Datta, Upamanyu. 2021. Relief from usury: Impact of a self-help group lending program in rural India. Journal of Development Economics 148(January 2021): 102567. https://doi.org/10.1016/j.jdeveco.2020.102567 |
| spellingShingle | informal sector education lending gender women's empowerment impact evaluation empowerment poverty rural areas credit impact assessment women caste systems Hoffmann, Vivian Rao, Vijayendra Surendra, Vaishnavi Datta, Upamanyu Relief from usury: Impact of a self-help group lending program in rural India |
| title | Relief from usury: Impact of a self-help group lending program in rural India |
| title_full | Relief from usury: Impact of a self-help group lending program in rural India |
| title_fullStr | Relief from usury: Impact of a self-help group lending program in rural India |
| title_full_unstemmed | Relief from usury: Impact of a self-help group lending program in rural India |
| title_short | Relief from usury: Impact of a self-help group lending program in rural India |
| title_sort | relief from usury impact of a self help group lending program in rural india |
| topic | informal sector education lending gender women's empowerment impact evaluation empowerment poverty rural areas credit impact assessment women caste systems |
| url | https://hdl.handle.net/10568/142687 |
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