Does Gender Define Access to Microcredit? Evidence from India

Abstract

The aim of this research is to examine the influence of gender on the accessibility of microcredit for small and informal business owners in Nagaland, India. In addition, the study conducts a region-wise comparative analysis of the loans disbursed to self-help groups (SHGs) by banks. Using primary data obtained from a cohort of 205 small business proprietors within the state, the study used the methods of descriptive statistics and econometric analysis. Furthermore, the paper employed the logit model to examine key factors such as firm size, SHGs and the qualifications of the entrepreneurs, along with gender. The secondary data, obtained from the Centre for Monitoring Indian Economy and the National Bank for Agriculture and Rural Development, allow the study to conduct a comparative analysis using the percentage share approach. The results reveal that public sector banks disbursed the highest amount of loans to SHGs, and the comparative analysis indicates that SHGs in the North-Eastern Region of India have the lowest share of savings with banks. Based on the empirical analysis, the author concluded that firm size, financial services provided through SHGs, educational qualifications, and gender of small business owners play a significant role in the accessibility of microcredit from financial institutions.