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Saravanan, S., Shanmugam, K. Determinants of Microfinance Outreach in India: Empirical Evidence. Applied Economics Quarterly, 66(2), 165-178.
Saravanan, Sivagandhi and Shanmugam, K. R. "Determinants of Microfinance Outreach in India: Empirical Evidence" Applied Economics Quarterly 66.2, , 165-178.
Saravanan, Sivagandhi/Shanmugam, K. R.: Determinants of Microfinance Outreach in India: Empirical Evidence, in: Applied Economics Quarterly, vol. 66, iss. 2, 165-178, [online]


Determinants of Microfinance Outreach in India: Empirical Evidence

Saravanan, Sivagandhi | Shanmugam, K. R.

Applied Economics Quarterly, Vol. 66 (2020), Iss. 2 : pp. 165–178

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Author Details

Sivagandhi Saravanan, corresponding author. UGC Post-Doctorate Research Fellow, Madras School of Economics, Chennai-600025, India.

K. R. Shanmugam, Professor, Madras School of Economics, Chennai-600025, India.


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Using a panel data on the Microfinance-Bank Linkage Program (2008–2015), this paper examines the determinants of the program’s outreach. The results indicate that microfinance outreach has not been a key indicator for addressing economic and social issues. The study underscores that the program favors income-rich rather than poor states: the average loan is correlated with higher per capita income and high economic growth at the state level. Literacy, NPA, and bank ownership also matter in determining microfinance outreach.

Table of Contents

Section Title Page Action Price
Sivagandhi Saravanan / K. R. Shanmugam: Determinants of Microfinance Outreach in India: Empirical Evidence 1
1. Introduction 1
2. Bank-SHG Program in India: An Overview 3
3. Literature Review 4
4. Model, Data and Estimation 6
5. Empirical Results 8
6. Concluding Remarks 1
References 1