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Abstract
Microfinance through self-help groups (SHGs) has evolved as a mechanism for social inclusion of the rural
poor. This paper has identified the factors that influence the repayment performance of the SHGs in India,
by conducting a study on a sample of 120 SHG members from 60 dairy SHGs and 60 non-members selected
from the state of Haryana. Results of Tobit regression have shown that peer monitoring, group size and
female percentage have positive influence, whereas homogeneity and loan amount have negative influence
on the repayment performance of the SHGs. The study has concluded that if the essence of self-help and
cooperation is fostered and monitored properly, the poor can also repay.