Impact of DCCB-Sponsored SHGs on Financial Inclusion of Rural Members in Vizianagaram District, Andhra Pradesh

Abstract

The current study researches the issue of Self help groups sponsored by DCCB (Self help Groups) and their impact of enhancing financial inclusion of members within Vizianagaram district, Andhra Pradesh. The study uses an example of 200 SHG members to investigate the effect of three important variables, including Credit Support, Training Programs, and Group Cohesion, on financial inclusion.  Simple and linear regression analysis of the data was used after data were gathered using rigorous methodological designs with the aid of structured questionnaires. According to the empirical analysis, the three variables have a strong and positive impact on financial inclusion with Training Programs presenting the most potent impact followed by Credit Support and Group Cohesion.  The findings reveal the significance of the right provisioning of loans in time and quantity, of effective capacity-building programs and the social capital of SHGs, which in turn increases the accessibility and usage of formal financial services among the members.  These results imply that combined interventions that combine credit facilitation, skills building and cohesive group functioning have to be used concomitantly to enhance financial inclusion.  The paper, thus, provides practical recommendations to policy, DCCB, and SHG leaders to improve the financial inclusion and empowerment of rural populations with evidence-based, holistic approaches..