Purpose: The main intention of the present paper is to see how far the demographics of respondents impact on the study of microfinance in Chikkaballapura district. Further, the study also aimed at revealing household occupation before and after loan from Self Help Groups (SHGs) and the study also focused on the reasons behind rise in NPAs in Karnataka. Also the study's intention includes the study of challenges faced by MFIs in Karnataka. Microfinance offers a range of small amount of financial products aiming to address market future (Gatto, 2018). Accessibility to credit has a promising role in strengthening livelihoods of the poor living in the slums, other depressed and marginalised individuals by generating new opinions and increasing confidence, self-image and status in the society. Credit has the power to turn the lives of individuals from object poverty to lives of dignity and self-respect (Akudugu, 2012).
Methodology: Previously known questionnaire was administered as schedule of interview after knowing the literacy levels of respondents. Chi-square, contingency coefficient modified comparative ANOVA and Kendall's co-efficient of concordance and Extent of challenges Faced Index (ECFI) were performed. The respondents belong to 6 villages of 6 blocks of Chikkaballapura district.
Findings: The demographics of respondents are significantly varying with high degree of relationship. The household occupation before availing loan stood that 30 respondents doing agriculture, 9 harvesting commercial crops, 8 each livestock supervision and maintenance and working in grocery shop and delivery service. After availing loan from SHGs 28 involved in harvesting commercial crops, 14 in working in readymade garments units and 9 worked in petty shop business. The reasons behind rise in NPAs include over leveraging of borrowers, highest interest rates, competition in the industry and personal or family issues. The challenges faced by MFIs found to be in the rank order risk of over leveraging, loan default and unhealthy competition.