Tribal Transformation through Microfinance:An In-Depth Impact Study of an NGO Sponsored Microfinance Programme in Kerala

More than a decade of deepening engagement with microfinance programmes throughout the world has brought home the message that microfinance goes beyond finance and compels attention and action from a larger development perspective. It is considered as a tool for the emancipation of the poor and the marginalised. At this juncture, a study has been carried out in Kerala to examine the impact of group based microfinance in transforming the tribal communities. A comparison between the target households with the control household had formed the basis of analysis where the target households were the households in which one of the family members was a participant in the selected microfinance programme; and the control group included households where none of the members were under any microfinance programmes. The study focuses on the microfinance activities of an NGO, viz., Shreyas. The study found that the impact of microfinance on the income, saving, employment and migration is encouraging. Similarly, the expenditure pattern reveals higher level of expenditure by the target group over the control group. Microfinance also acts as a catalyst in the livelihood diversification among the tribal folks. In the matter of economic empowerment, reduction of poverty and social empowerment, the beneficiary households claim positive changes, yet, miles to go to mainstream them. Given the same socio-economic fabric among the target and control groups under study, the positive impact of microfinance on the target group is a real testimony to the magical effect of microfinance.