Accessibility to Credit by Urban Households- A study of NSSO Data

Abstract

This paper considers lack of accessibility to credit as one of the major indicators of financial exclusion and analyses NSSO 59th round data to understand the problem of exclusion based on accessibility to credit by poorer sections of the society. In this context it is to be noted that the financial inclusion drive currently is urban centric. However, given the fact that the country's urban population is increasing at a faster rate than the total population and by 2030, about 40% of Indians will be living in cities and towns, urban regions too need attention. This paper presents a detail analysis of NSSO unit record (household level ) data to understand various dimensions of household indebtedness, concentrating primarily on urban households of the country. A state-wise analysis considering various social classes and gender aspects provides insights into the kind of challenges faced by the formal financial institutions.