Social Impact Of Microfinance On SHG Members: A Case Study Of Manipur

Abstract

Manipur is one of the economically backward states, and is located at the easternmost remote corner oflndia. As per the Census 200 1, Manipur has total population of about 21, 66,788 with a per capita income of t 15, 270/- as compared to the all India average of t 24,256 in 2007-2008. Poverty ratio ofManipur stood at 28.54 in 1999-2000 as per the report of the Planning Commission, Govt. of India, and is above the all India average of 26.10. At present, there are about 77 scheduled commercial bank branches operating in the state of Manipur. CD ratio is very low at about 53 .40%, as compared to the national average of 59 .3 7% as on March 31 , 2007. Therefore, many people are outside the purview of banking services. Although microfinance movement is comparatively new in the state of Manipur, it is becoming increasingly popular in the rural areas of Manipur as it is in the other parts of the country. Formation of SH Gs has become a movement in the rural areas. Since microfinance has been globally recognized as one of the effective tools for poverty alleviation, there is a need to understand how microfinance works in Manipur in benefiting the people at the bottom of the pyramid of the society. There is a need to understand how micro finance socially impacts the SHG members. This paper attempts to highlight the social impact of microfinance on SHG members of Manipur State.