A Study on Impact of Microfinance Institutions on the Coastal Indebtedness in Marine Fisheries Sector of Karnataka

Vipinkumar.V.P & Swathi Lekshm

Abstract

Assessment of the extent of indebtedness among marine fisherfolk in mechanized, motorized and traditional sectors and the role of credit agencies in providing credit and the impact assessment of Microfinance Institutions (MFI) on coastal rural indebtedness in Karnataka state were focused. The credit utilization pattern and repayment behaviour in marine fisheries sector, the impact of selected MFIs on indebtedness, supply of credit and empowerment of marine fisherfolk, elucidating success cases of MFIs in entrepreneurial capacity building were the major objectives. Data were collected form the marine fisherfolk from the various strata such as mechanized, motorized and traditional sectors as representative samples. Study was made through personal interview of the fisherfolk to assess extent of indebtedness and other parameters with a pre-tested and standardized data collecting protocol. Identified MFIs mobilized in marine fisheries sector in the state and the members were personally interviewed to assess their impact on indebtedness level, supply of credit and empowerment. Success cases of MFIs on entrepreneurial capacity building were elucidated which significantly played the role in the debt redemption and poverty alleviation and were documented. The study undertaken in Karnataka state of South West zone, with 600 samples from the various sectors from Mangalore Fisheries harbour, Dakshina Kannada district showed the average indebtedness in the primary sector as Rs 4.25 lakhs, that in the secondary sector as Rs 3.42 lakhs and that in tertiary sector as Rs 0.32 lakhs. The case studies elucidated from Manjunatha SHG, Dakshina Kannada district, and the MFI ‘Mathsya”, Navodaya, Amrithavarshini and Bhramambika, by interviewing 30 women members each revealed that the MFIs scored high in all the attributes and all members expressed maximum satisfaction over the performance of MFI which brought about a socio-economic transformation, poising towards a higher standard of living in their livelihoods.