Multiple Group Memberships and its Effect on Repayment of Loans:A Case Study of Thiruvananthapuram District in Kerala

Contribution of SHG-BLP to social re-engineering and access to banking services in India is unrivalled. Alongside the positive attributes, the SHG-BLP has been misused, at least in some corners of the country. To take the advantage of benefit of being a group member, it has become a common practice, especially in SHG intensive areas to be part of several groups and avail facilities like credit and social security programmes from multiple sources. The present study throw light on the extent of such multiple membership in Thiruvananthapuram district in Kerala and highlights different facets of the issue. Multiple membership was observed to be with a major objective to avail credit from various sources which has culminated into larger indebtedness among the members. The study reveals that multiple membership had not influenced repayment of loans taken through groups as repayment is linked strongly with factors other than income generated through group activity. However, membership in multiple groups was found to have a bearing on repayment of loan taken directly by the member and other aspects of the working of the group.