Determinants of demand for credit by poor: evidence from urban slums of Mumbai

Shruti Malik, Girish Chandra Maheshwari and Archana Singh

International Journal of Financial Services Management, 2021, vol. 11, issue 1, 75-94

Abstract: The purpose of this study is to empirically investigate the factors affecting the borrowing of poor people residing in urban slums of Mumbai in India. The people living in slums depict the urban poverty the most. It is pertinent that in current scenario of the drive for financial inclusion we study the socio-economic determinants of borrowing particularly in urban slums. The study entails a primary survey conducted with the help of a structured questionnaire from 448 urban households located in six major slum clusters of Mumbai. The Heckman two-stage model is used to analyse the data in two parts, i.e., determinants of demand for credit and the amount of credit. The finding of this paper presents a number of significant socio-economic factors influencing the borrowing behaviour. This study has various practical implications for policy makers and banks in effective formulation of policies for credit delivery.

Keywords: credit demand; urban slums; financial inclusion. (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=115741 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijfsmg:v:11:y:2021:i:1:p:75-94

Access Statistics for this article

More articles in International Journal of Financial Services Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().