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This study aims to investigate the significant impact of microcredit on small businesses and entrepreneurs in north-east India. The research employed a primary survey approach, gathering responses from 205 small business owners through purposive sampling. The analysis utilised a probit model to assess the data, highlighting that factors such as the business's status, participation in awareness programmes by entrepreneurs, operating the business from home and other relevant variables play a crucial role in determining access to microcredit. The findings point out that the businesses experiencing decline are more likely to access credit from microfinance institutions. Also, there is a significant correlation between awareness programmes attended by the entrepreneurs and access to microfinance services. These findings suggest that an increase in the awareness programme participation by entrepreneurs will significantly encourage access to microfinance services. [ABSTRACT FROM AUTHOR]

This study provides a comprehensive examination of financial inclusion in India, with a dual focus on the disbursement of loans to Microfinance Institutions (MFIs) and the socioeconomic impact of Self-Help Groups (SHGs), specifically highlighting the extent of bank-SHG linkages. Employing a rich dataset spanning 15 years sourced from the National Bank for Agriculture and Rural Development (NABARD), our analysis reveals the central role of commercial banks in facilitating access to financial resources for both MFIs and SHGs, notably contributing to 50% of loan disbursements to MFIs. Moreover, we discern distinct patterns in loan disbursements that correspond with the onset of the COVID-19 pandemic, signalling a temporary decline during the pandemic followed by a post-pandemic resurgence, reflecting the adaptive financial needs of businesses and households amidst the pandemic-induced economic upheaval. Concurrently, our research unveils substantial regional disparities in savings behaviour, with the southern region demonstrating notably higher savings levels when contrasted with the North Eastern Region. This disjunction underscores the imperative for tailored financial inclusion strategies in the latter, underscoring the exigency of region-specific approaches to foster economic growth and stability. Therefore, our findings reveal the transformative potential of SHGs in synergy with commercial banks for catalyzing socio-economic development, all the while calling attention to regional variations in financial habits that necessitate due consideration for achieving comprehensive financial inclusion and sustainable economic development across India. [ABSTRACT FROM AUTHOR]