Evaluating the impact of microfinance in India: A meta-analytic review of SHG savings, credit access, and women’s empowerment

Abstract

This paper presents a systematic meta-analysis of nineteen research studies on microfinance in India, with a special focus on Self-Help Groups (SHGs), the SHG-Bank Linkage Programme (SBLP), and microfinance institutions (MFIs). The reviewed literature spans over two decades and captures diverse aspects including savings mobilization, credit accessibility, women’s empowerment, poverty alleviation, and institutional performance of MFIs. A thematic synthesis reveals consistent evidence that microfinance initiatives significantly enhance women’s decision-making autonomy, financial inclusion, and income stability. Studies also highlight the positive role of SHG-Bank linkages in fostering community-based savings and credit culture. However, findings point to challenges such as regional disparities, portfolio risks, and limitations in scaling sustainable impact. Methodologies across studies range from survey-based analyses and regression models to secondary data evaluations and time-series trend analyses. While most studies confirm positive associations between microfinance participation and empowerment outcomes, heterogeneity in research design and limited disclosure of standardized effect sizes restrict quantitative pooling. The paper concludes that microfinance remains a critical tool for inclusive growth in India but emphasizes the need for longitudinal designs, consistent reporting, and policy support to ensure sustainability. Recommendations include stronger data transparency, digital integration of SHGs, and targeted interventions for lagging regions.