ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Sougata Ray

Over-indebtedness and Its Drivers among Microfinance Borrowers in India

In microfinance markets worldwide, over-indebtedness among borrowers and households has emerged as an important concern. Over-indebtedness, measured in terms of sacrifices made by households, is high in both rural and urban India. Factors statistically significant in explaining over-indebtedness are the borrower’s age and financial literacy; the household’s entrepreneurial activity, income level, and spatial location; and the proportion of dependent members in a household.