• AYISHA

Microfinance has become a cornerstone of financial inclusion strategies worldwide, particularly in developing economies such as India. By extending small loans to low-income households and marginalized groups, microfinance has been celebrated for empowering women, supporting entrepreneurship, and alleviating poverty. However, its rapid growth has also exposed borrowers to overindebtedness, repayment stress, and social vulnerabilities. India presents a unique paradox: while Self-Help Groups (SHGs) and Microfinance Institutions (MFIs) have expanded financial access across states like Tamil Nadu, Andhra Pradesh, and Karnataka, cases of multiple borrowing and aggressive recovery practices highlight its darker side. This article examines microfinance as a double-edged sword, analyzing its contributions to financial inclusion alongside the risks of overindebtedness. Drawing on Indian experiences—particularly from South India—the article explores the implications for financial stability and social wellbeing, while offering policy recommendations for sustainable microfinance practices.

Microfinance, Overindebtedness, Financial Inclusion, Self-Help Groups, Social Wellbeing, India

"Microfinance and Overindebtedness: A Double-Edged Sword with Insights from India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 9, page no.d169-d172, September-2025, Available :http://www.jetir.org/papers/JETIR2509325.pdf

"Microfinance and Overindebtedness: A Double-Edged Sword with Insights from India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 9, page no. ppd169-d172, September-2025, Available at : http://www.jetir.org/papers/JETIR2509325.pdf