A Study on the Availability and Utilisation of Microcredit in the Traditional Fisheries Sector of Kerala, India

Microcredit from microfinance institutions is increasingly common in India and is used for activities from simple thrift to credit support for income generating activities. In coastal fishing communities, a large number of microfinance initiatives are active. Two major sources are Government schemes through fishermen’s cooperative societies and others through non-government organisations. These have made credit accessible to people in fishing communities, especially fisherwomen. Many microfinance schemes provide credit to develop microenterprises but the funds instead have been used for household needs and only minimal tangible productive assets were created. Through household surveys, the present paper examines how microcredit is used by fisherwomen and fishermen in Kerala, India. It explores if the availability of microcredit has brought about any changes in livelihood options, household income and expenditure, social status and decision making among the fisher population, especially fisherwomen.