IMPACT OF COVID 19 ON BORROWINGS FROM SELF-HELP GROUPS AND OTHER SOURCES OF MICROFINANCE

ABSTRACT

COVID 19 is a pandemic that has emerged as a major crisis for the entire world. With the emergence of COVID 19, the borrowing pattern of individuals have changed drastically. During the second phase of COVID 19, the Government has imposed severe restrictions in terms of the Work from Home and Social distancing. This led to a decline in borrowing, particularly from the Self-help groups. This study seeks to establish the relationship between borrowings and Lockdown. Further, the study seeks to measure the gendered impact of COVID 19 on borrowings from different sources. The Difference in Difference method & Kernel based PSM (Propensity Score Matching) was used to identify the impact of COVID region (Rural Vs Urban) and the gendered impact of COVID 19 on the borrowings from different sources of microfinance. The results establish that during the COVID 19 period, the Rural regions witnessed a decline, whereas the borrowings from the bank and nonbanking finance companies increased drastically. © 2022 Gokhale Institute of Politics and Economics. All rights reserved.