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Significance of Income Generating Activities under Micro-Finance: A Study of Micro-Finance Groups in Wayanad District, Kerala

  • Emil Mathew

    (Institute for social and Economic Change)

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    The present paper discusses the necessity of promoting income-generating activities (IGAs) under micro-finance programmes. Under micro-finance programmes, the principle of joint liability ensures access to credit. In the absence of remunerative IGAs, peer pressure forces the members to borrow loans from various sources at the time of repayment and results in indebtedness. The present paper examines the factors influencing the members to undertake IGAs and puts forth some policies to promote productive activities.

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    File URL: http://www.isec.ac.in/WP%20-%20167.pdf
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    Paper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 167.

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    Length: 32 pages
    Date of creation: 2005
    Date of revision:
    Handle: RePEc:sch:wpaper:167
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    1. Stiglitz, Joseph E, 1990. "Peer Monitoring and Credit Markets," World Bank Economic Review, World Bank Group, vol. 4(3), pages 351-66, September.
    2. Wydick, Bruce, 1999. "Can Social Cohesion Be Harnessed to Repair Market Failures? Evidence from Group Lending in Guatemala," Economic Journal, Royal Economic Society, vol. 109(457), pages 463-75, July.
    3. Sharma, Manohar & Zeller, Manfred, 1997. "Repayment performance in group-based credit programs in Bangladesh: An empirical analysis," World Development, Elsevier, vol. 25(10), pages 1731-1742, October.
    4. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
    5. Rahman, Aminur, 1999. "Micro-credit initiatives for equitable and sustainable development: Who pays?," World Development, Elsevier, vol. 27(1), pages 67-82, January.
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