Determinants of Women’s Participation in Self-Help Group (SHG)-Led Microfinance Programme in Tamil Nadu*

Factors determining participation of women in microfinance programme in Tamil Nadu have been identified following the multi-stage purposive and random sampling technique and selecting Coimbatore and Ramanathapuram districts for the study. It has been observed that socially backward, landless and marginal farm households participate more in this programme. Possession of livestock and consumer goods by the member households has been found to deter the joining of group. However, the number of households having informal borrowings, especially from moneylenders has been recorded to be higher among the members before joining the group. Analysis of determinants of women’s participation in microfinance programme using probit model has revealed that the age of women and value of productive assets other than land have a significant negative influence on their participation. However, social backwardness, indebtedness and presence of other microcredit programmes in the same or nearby villages have a significant positive influence on women’s participation in this programme