This paper tries to investigate the effectiveness of two poverty alleviation policies adopted by Indian government;(i) microfinance programme under SwarnaJayanti Gram SwarojgarYojona Scheme (SGSY) and (ii) National Rural Employment Guarantee Scheme (NREGS) to improve the economic wellbeing of...

Swarnajayanti Gram Swarozgar Yojana (SGSY) is a government-sponsored microfinance program. The scheme is based on four features: group lending with joint liability, progressive lending, back-ended subsidy, and social capital. We propose a new model of SGSY having these features: group lending...

In this paper, microfinance program through joint liability credit contract is explained with the help of a two-stage game when the program is operated by a non-motivated NGO with the help of a commercial bank and government. It is observed that even in the presence of public-private cooperation...

This paper shows that the Government of India supported microfinance program under Swarnajayanti Grameen Swarojgari Yojana (SGSY) scheme is partially effective in reducing poverty of the rural households. Here, a few expansions in the National Rural Employment Guarantee scheme play the...

Agriculture credit which is one form of micro credit mainly for the small and marginal farmers can be borrowed under two different types of short-term credit contracts: individual liability credit contract or joint liability credit contract under Primary Agricultural Credit Society (PACS). The...

In this paper we consider that a representative of a not so affluent rural household has three options. He (she) may join in a microfinance system operating on the basis of individual liability credit contract, or on the basis of joint liability loan contract through forming self-help group or...

This paper attempts to assess whether participation in a microfinance program helps households generate personal savings, as distinct from savings through compulsory contributions to the program. We consider a microfinance program initiated by the Government of India (the SGSY scheme),which is...