Determinants of the Length of Credit Cycle among Self-Help Group Households in Odisha

The stability phase of the Self-Help Group ensures easier access to bank loan for the members of the SHGs. Once the first dose of bank loans is repaid, the second and subsequent doses of loans are provided to the members of SHGs by the banks. The time period for each loan cycle is not uniform across members and SHGs. The time lags between two successive doses of loans are termed as credit cycle. Intra-group variation in the length of credit cycle is usually measured in terms of the number of days required to repay the loans which is conditional upon the socio economic differences among the SHG households. The present study examines the determinants of the length of credit cycle with the aid of econometric tools.