Coastal rural indebtedness and impact of microfinance in marine fisheries sector of Tamil Nadu

In this paper an attempt is made to assess the extent of indebtedness among marine fisherfolk in mechanized, motorized and traditional fisheries sectors and to assess the impact of Microfinance Institutions (MFI) and Self Help Groups (SHG) on coastal indebtedness in Tamil Nadu. The study was carried out in three coastal districts of the state. Situational analysis was done through PLA in the selected locations and the sample respondents were selected from mechanized, motorized, traditional, secondary and tertiary sectors. Data were collected through personal interview from members of 12 selected MFIs and non members in these sectors, comprising a total of 600 respondents. The results showed that the level of indebtedness of members of MFIs was less compared to the non members. In certain cases, even though the indebtedness was more, the level of repayment was found to be significantly high in MFIs. There is an extreme necessity of strengthening the MFI ventures in the traditional fisheries sector in the state. A comparative assessment of the sources of credit also was undertaken to draw valid conclusions. It was found that the MFIs ranked better in most of the attributes in the perception of stakeholders compared to banks and non-institutional credit sources.