Title_Determinants of Dropout of Members from Thrift and Credit Groups: An Empirical Examination in India

Author_ Debadutta Kumar Panda

Pages 59-72

Abstract_ This quantitative study is conducted in the state of Orissa in India to understand the determinants of dropout of members from women self-help groups. Stratified random sampling method was employed to select 40 sample SHG members from 16 self-help groups from 6 villages. Descriptive statistics and t-significance test was used to understand the difference between active borrowers and dropout members across a set of selected variables. The logit regression model was used to analyze the possible predictors of dropout of members from self-help groups. The hypothesis testing was done through the logit regression. From the analysis, the possible determinants of members’ dropout from their respective self-help groups were observed to be loan size, group size, group meeting, group savings, total loans received, number of loans received, literacy position of the members and interest rates on the loans.

Keywords_ development, India, microfinance