IMPACT OF JOINT LIABILITY GROUP (JLG) FINANCE ON RURAL HOUSEHOLDS IN TAMIL NADU

M. ANJUGAM¹*
¹Professor, Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641 003, Tamil Nadu, India
* Corresponding Author : manjuecon70@gmail.com

Received : 02-01-2021     Accepted : 26-01-2021     Published : 30-01-2021
Volume : 13     Issue : 1       Pages : 10574 - 10577
Int J Agr Sci 13.1 (2021):10574-10577

Keywords : Joint Liability Groups, Microfinance, Financial inclusion, Impact
Academic Editor : Dr Vipul N Kapadia
Conflict of Interest : None declared
Acknowledgements/Funding : Author is thankful to Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641 003, Tamil Nadu, India to carry out this University Research Project during the year 2018-2020
Author Contribution : Sole author

The study has been attempted to assess the impact of JLG finance in terms of access to loan, purpose wise utilization of loan, employment generation, income, consumption, asset creation, savings and investment and to identify the benefits and constraints realized by the beneficiaries in availing JLG finance. Thuraiyur block, Thiruchirappalli district was purposively selected for the study. There exists a positive impact on generation of employment and income in post JLG period and not much impact on asset creation in the form of household assets, savings, investment in terms of LIC policies etc., other than livestock. Nearly 80 percent of them had less than Rs.1000 per month as savings after joining JLG. Nearly forty-two percent of them are having old debts from informal sources particularly money lenders and other MFIs. Access to credit with low interest is the major benefits realized by the members in availing loan from JLG and asset creation was ensured. Low amount of loan sanctioned per time, no flexibility in repayment may be the most important constraints. The study suggested that training on agro based enterprises to JLG members, educating JLG members to avail life Insurance policies for self and family members, in availing various benefits provided by the state and central government to weaker sections by NGOs and promotion of savings may be encouraged

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