CHAPTER - One
INTRODUCTION 
1.1	General Background
With small territory of 147,187 square km. in south Asia, Nepal, the country of tall Himalayas is geographically landlocked with two big neighbours, India in south, east and west, and China in the north. Nepal’s population is growing rapidly while the existing population is unevenly distributed over haphazard settlement. According to census 2001 the total population of the country is 23151423 among which 11563921 are males and 11587502 are females (CBS, 2001). Therefore, women cover more than half of the country’s population. But the socio-economic and political condition of Women is very poor. 
The developing and underdeveloped countries of the world, which form a majority of the population, for the past ‘few decades’ have been in search of specialized economic programs that cater to the needs of the poor people. As a result, there have been substantial gains in reducing poverty, and are gaining momentum to improve their lives particularly in providing better education, nutrition and health. In spite of this encouraging trend, a major portion of people in Asia, estimated to be 600 million continue to live below the poverty line. (APDC, 2000)
Millions of people in developing countries produce a wide variety of goods at home or shops and in trades and retails. The gods produced range from a local cigarette pottery and ceramics, mental utensils, household conveniences like mops and brooms to growing fruits and vegetables .Even in the urban areas, a growing percentage of the working population , sometimes as high as 50%(Otero and Rhyne 1984) is engaged in micro enterprise activity. In order to prosper their business, all micro enterprises have a sufficient supply of working capital for the purchase of supplies. With expansion they also need to invest in assets such as tools, equipment and improved premises. Sometimes people generate such capital from own savings or borrowing money from money lenders at a horrendously high rates of interest. Since, they lack collateral to access money from the formal financial services, most of the times, though such micro entrepreneurs are just left stagnant with their skills and business wish for some miracle to happen for the surplus of money.  
The concept of micro finance has its roots in this lack of capital for investment particularly access to capital to the poor in developing countries. As the name implies, it is financing at a small level. Still the term could be vague and ambiguous considering that word ‘micro’ in micro finance may refer to any aspect of the finance associated with it. Many definitions have been put forward in this context and definition differ in understood as, Extension of small loans to very poor people for self employment projects that generate income, allowing them to care for themselves and their families. In other words, micro –finance is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. (CMF 1999)
With the capital acquired from micro finance services, poor people are able to engage in micro enterprises. Small initiatives which do not require huge capital, for which, resource and skill are locally available and most importantly which yields results very quickly. The quick yielding of results is taken as a very important factor as most of the micro finance programs allow very short repayment time. Hence, the micro entrepreneur must be able to generate enough income to be able to pay back the loan on time.
Realizing the importance of micro-credits specially based on rural area and conducted by women, the researcher, is intended to explore the cause and consequences of  micro-credit development in the rural area and its socio-economic impact to the over all society.
1.2	Statement of the Problem 
In spite of some vague legal background, the interventions in the micro credit sector in Nepal have been plenty. The start of Micro Credit services in Nepal was with the introduction of Production Credit for Rural Women by Ministry of Local Development. With the success of Grameen Bank in Bangladesh, Harihar Dev Pant, friner Cenntral Banker started a replicated model in Nepal which is known as Nirdhan, was launched by Ministry of Women and Social Welfare in the form of Micro Credit project the interest of donors, micro credit program has been catch word for every development institution either for showing their outreach to the poor or to draw funding from various sources. As a result, there are micro credit programs launched without proper preparation and homework in small patches all over the country. There had been no supervision or monitoring of such intervention by a centralized authority.
For the socio-economic development of rural areas, most of the rural women across the country have been established the micro-credit program in the local initiation, local participation and efforts. The communal practices of such programs have been contributing the greater positive impacts in the society. The present study has some research questions to explore some specific findings regarding the impact of micro-credit at the study area, are as follows.

1.	What is the social status of the people in the study area?
2.	What are the socio-economic impacts made by the micro-credit in the study area?
3.	What are the constraints found to operate the micro-credit in the study area?
1.3	Objectives of the Study
The general objective of the study is to analyse the impact of women based micro credit of the study area.
The specific objectives of the study are,
1.	To find out the socio-economic status of women in the study area.
2.	To examine the socio-economic impacts of micro-credit in the study area.
3.	To analyze the constraints on the operation of micro-credit in the study area.
1.4	Rationale of the Study
Considering the importance of women based micro-credit system in rural development, my study is focused on generalizing the awareness to make capable and to get access of socio-economic development of rural women that comprises a large portion of rural areas and majority of the rural people with low level of socio-economic living.
Hence the study is an effort in the women based micro-credit development at local level of rural area of Nepal which will ultimately create an access of socio-economic power authority from the grass root level to the decision making level. Being a capable and competent cadre of the economic development of the country women can be the change agent of the development for rural Nepal. Still there is very low participation of women in the development process in Nepal, there is very high participation in the contribution of women in the sense of working environment and production level but they do not have the access of representation and authority of power from the policy making to the implementation phase of governance. The real benefit of the development through governance has been gone on the hand of men rather than women ,so my study tends to advocate the emerging issue of the majority of deprived and vulnerable section of society who are in the struggle  to be strengthen socio-economically, since the long ago for their rights. For which, the micro-credit may be an apt means to play an indispensable role to achieve the equity goal of women in Nepal.
1.5	Limitations of the Study
The study has following limitations which may lead the study up to a case study but not to more specific findings.
1.	Although women based micro-credit may have different aspects of socio-economic and political living, the participation on local development had been tried to dig out during the study. This study examines the women’s participation in the Lakhanpur VDC of Jhapa, Nepal. So rest of the aspects and concerns are left for the further researcher.
2.	The study has the contextual findings the generalization of the finding may or may not be applicable to the other parts of Nepal.
3.	The study has the limited boundary of the geographical area which is a district of Nepal, due to the limitation of time and budget.
4.	The limited statistical tools had been used for the accuracy to the study due to the qualitative based study rather than quantitative.
1.6	Organization of Study
The very chapter deals with the contents which are included in this thesis research in each and every chapter. In the first chapter there are the general background, statement of the problems, objectives of the study justification of the study and organization of the study. The composite whole of this section covers by the chapter one which is the introductory part of the report. The chapter two includes the literature review where different related literatures are kept in different part as the general studies on Micro-credit sector and other related studies of Micro-credit in Nepal. The third chapter is research Methodology where the complete procedure of the research study has included as the research design, data collection methods and processing of data. The forth chapter introduce the area and NBBS. The fifth chapter consists the ways of data analysis and presentation and the out come of the study which are known as major finding of the research. The last chapter is included by summary, conclusion and recommendation according to the finding of the research study.

CHAPTER - TWO
LITERATURE REVIEW
2.1	General Studies on Micro-credit Sector
The first ones and most repeated ones are the studies on Grameen Bank in Bangladesh and its success theory. Base on studies, many replication of Grameen bank are tried all over the world in developing countries adapting it to the local context. Now a sizeable amount of documentation is available on Grameen Banks and its major replications also addressing the change or diversion from the original track of Grameen Bank approach. Some of the major studies in South East and South Asian context include case studies of successful micro finance service providers: Grameen Bank, Bangladesh Rural Advancement Committee, Bagladehsh Rural Development Program,(stuart Rutherford; microfinance capacity assessment in Bangladesh1996), Bank Rakyat Indonesia, Association of Cambodian Local Development Agencies ,(http://home1.swipnet.se,info poverty:http://lcweb2.loc.gov/frd:us library of congress country study- indonesion),SANSA Development Bank and Sarvodaya Economic Enterprises Development services(SEEDS) in Sri Lanka, Centre for Agriculture and Rural Development and Gerry Roxax Foundation in the Philippines, DeTan Yew Mai In Vietnam, NIRDHAN and SAHARA in India, IKHTIAR in Malaysia, NIRDHAN and CSD in Nepal .
An important feature of MF program is the non financial service it provides to its members. These services mostly include training program of some sort. Some training such as basic literacy and arithmetic are prerequisites to run the program smoothly and for the members to be able to keep their accounts. Apart form that, the studies show that auxiliary trainings on micorenterprises, health, sanitation, nutrtition and awareness from a part of non financial services.
One of the major objectives of the micro finance programs being empowerment of its target users, various studies pertaining to impact assessment of micro finance programs are now being conducted. Compared to other areas mentioned above, this field of research is fairly recent and has provided a bright insight on the direction and growth of micro finance programs. The lessons learnt and impact assessment of MF programs has been useful in designing of new programs.
Since the success of NIRDHAN, there have been many studies carried out mostly in the form of case study of NIRDHAN and feasibility of replicating NIRDHAN or providing similar services in other areas. Researchers, scholars and microfinance practitioners have reached out to these programs and have carried out many types of studies. Cloning Grmeen Bank: Replicating a poverty model in India, Nepal and Vietnam edited by Helen Todd (1996) gives an account of early years of establishments and success of NIRDHAN as a model replica in Nepal. It gives brief discussion background n establishing NIRDHAN, its first year of rapid growth, second year where problems emerged, outreach etc.
2.2 	Other Related Studies of Micro-Credits in Nepal 
Rural credit in Nepal is provided by both informal and formal sectors. During 1997/98 the total rural credit requirement was estimated at Rs. 18 billion. The total rural credit supplied by the formal sector in 1996/97 was around Rs. 5 billion. It indicates that only about 28 percent of rural credit demand is fulfilled by the formal sector.  (Chatterjee et al 2000.)
A variety of formal and informal community based savings and credit organizations operate across the country, but their outreach remains limited and capacity for growth constrained by limited member, skill and capital (CMF, 1998). 
Most people in the world do not have access to the institutional financial services either for credit or for savings. Despite its widespread demand, it is estimated that institutional finance is unavailable to about 50 percent of all households in developing countries. Only 2.5 percent of the 500 million poorest household in the world have access to institutional credit (HDR 1996).
About 90 percent of the people in developing countries lack access to financial services from institution either for credit or for savings. Among them of course, are nearly all the poor can make use of micro finance, there remains a massive gap between the low level of commercial micro-finance available from financial institutions and the extensive worldwide demand for such financial services among low income people.
Rural Credit Review Survey (1994) indicates that less than 10 percent households borrow from formal sector. There is a substantial unmet demand for credit and it is more in hills and mountains. Most of the loans i.e. 71 percent are used for household consumption and personal expenditure, 29 percent goes to business and productive purposes. The lower income households tend to have a higher borrowing rate and corresponding occurs larger volume of debt to finance consumption. 
The micro-finance industry is evolving quite rapidly around the world with rapid spread of best practices on micro-finance service delivery. Increasing number of institutions are providing micro-finance services with an increased emphasis on sustainability and profitability (Robinson, 2001). Nepal’s situation is not too much different than the world situation. Rural finance has been playing catalytic role to improve the economic condition of rural people through imparting services from formal and semiformal institutions implementing across the country so as to maintain macro-economy satisfactorily. So the financial sector henceforth has been emphasizing towards poverty reduction endeavour as well. 
Rural sector needs modernization, diversification and commercialization of production and distribution system. Even among the rural people, the poorest of the poor need more sustained assistance to enable them to stand on their own feet. Construction of rural physical infrastructure would provide some assistance temporally, but that alone cannot provide sustained employment and income. They need assistance, exclusively targeted at them, for social development, asset creation, skill development and technology transfer and marketing to provide long term employment opportunities. A properly designed and effectively implemented financial system could thus help the rural poor to create productive assets as well as increases employment and income. Credit can play very important role to increase production, income and employment for the low income people.
The formal financial sector in Nepal comprise 13 commercial banks, two development banks, Rural Micro Finance Development Center (RMDC), Five Gramin Bikash Banks, two Gramin Bank replicates, 44 finance companies, 4 small farmer co-operative limited, 29 co-operative societies and 25 NGOs. Additionally, not licensed but involved in credit activities, there are further 73 SFCLS, 388 small farmer development program units, at least 786 savings and credit co-operative (SCCs), about 200 NGOs and more than 11000 savings and credit organization in various forms. In July 1999, there were over 4343 primary co-operative and 82 district co-operative unions registered with the department of co-operative. Most activities in formal financial sector are commercial in nature, resulting large loan sizes concentrated in industrial productive activities. The outreach of commercial bank is usually in urban area not in remote and priority sectors (DVN,2000		
Micro finance Sector in Nepal

Govt.Initiated Model

Semi Formal Sector

Govt.Mandated Model

Grameen Bikas Bank

NGO/SCC Model
(External fund

Micro finance Dev. Bank

NGo/SCC Model
(Internal Fund

Govt.Program

INGO Program

Indigenious NGO's

SCO's / SCCs

Micro Finance Sector

 Micro-finance has been developed largely outside the realm of formal financial sector. There is extensive evidence that micro-finance has a positive impact on reducing extreme poverty. There is no doubt that strong demand exist for micro-finance services among the poor. Until recently, the term “Micro-finance” was easily understood as a credit methodology that employs effective collateral substitutes to deliver and recover short-term, working capital loans to micro finance goes beyond business loan. Poor use financial services to invest in micro-enterprises, health, education and household emergencies in addition to meet wide variety of other cash needs that they encounter. The financial services-savings and credit enables clients to increase their household incomes, build assets and reduce their vulnerability to crises. 
Nepal has a long history in the operation of traditional lending groups often referred to in the literature as rotating savings and credit associations and known locally as Dhukuti, Parma, Ghuthi and Rodhi. These tend to be non –registered associations, quite formally structured in terms of membership rights and obligations but generally self promoted and fully autonomous of formal development agencies.
Savings and credit organization is a community based financial organization that is owned and controlled by its members operates primarily on fund generated through member’ saving and has savings mobilization and credit supply as its main activities. CECI (1996)
There are tens of thousands of unregistered savings credit groups in Nepal.’ Some of which are quite large and formal. even through they are not registered either as NGOs or co-operatives, the recent Study has estimated that the existence of 12158 savings and credit organization (SCOs) in Nepal of this ,about 5000were  promoted byINGOs,5500by NGOs and 3500 were self-emerged. According to Social Welfare Council’s (SWC) estimate, there are 18000NGOs of which 4017 are associated with SWC (Kantipur 1996,quoted by,CECI,1996)

CHAPTER - THREE
RESEARCH METHODOLOGY
Research methodology, as a matter of fact, involves everything related to research which is concerned with analyzing the nature and types of data and examining the ways in which they can be used in socio cultural research. The very chapter describes specially the methodologies adopted to conduct the very study by the researcher in his concerns. It includes the introduction of the study area, research design, sampling method, data collection methods and analysis of the collected data. 
3.1	The Selection of the Study Area
The Lakhanpur VDC is located at the eastern part of Nepal which is 2 km away on foot from the Mahendra highway that is linked to Damak Municipality of Jhapa district. The VDC is a home to various communities such as Brahmin, Kshetri, Rai, Limbu, Chaudari, Satars, Sarki and other occupational castes. It has 17,405 numbers of total populations and 3010 total households with a flat topography of Terai region. The maximum temperature of the VDC is 360centigrate. The literacy rate of the VDC falls at 67%. The VDC covers about 20 bigha of national forest land, 10 bigha of grass land and, the remaining is mostly irrigated. 85% of area of the VDC has got access to electricity, drinking water. Similarly, about 55% land has irrigation facilities of river water, cemented drainage and private deep boring irrigation system. The VDC has three high schools, two lower secondary schools and six primary schools funded and supported by the government and, four private primary schools are being run in the VDC. Similarly, some micro credit institutions, local NGOs, CBOs and user groups are visible in the area for a long time. Despite the accessibility and available opportunity to the people of the VDC, there are still some hidden and unhidden truths which were to be explored through this study for the awareness enhancement on the development of micro-credits programs on the VDC so the very site was selected to meet the objective of the study.
3.2	Research Design
Research design is the most important thing. It is the process how the research is conducted employing different tools and technique according the objective of the topic. An appropriate method had employed in the different context and situations. The study qualitative as far as possible with dominance of primary data, qualitative method for analyzing the abstract situation had been done very fair and natural. 
The study is specially designed to examine the women based micro-credit and its associated development activities in the socio-economic impact on the people at the study area .Furthermore, It also aims to analyze over the role of the women measuring the value and meaning of their input in the micro-credit development at the study area. 
3.3	The Universe and Sample
The total members of Nari Bikash Bachat Samuha , Lakhanpur , Gohaberi there were 300 members form which 30 members were taken as the sample which comes to be 10 %  of the total universe and it is assumed that the selection household have represented to the whole universe. The study is focused on the impact of women based micro- credit. The purposive sampling method was used while studying the concerns of the researcher.
3.4	Nature and Source of Data 
The study is based on both types of primary and secondary data and its nature is both qualitative and quantitative. Primary data are collected form structured and un structured questionnaire interviews, observation to target groups, discussion and key informants interview. The secondary types of data are collected form the available literatures such as records, study, reports, dissertations and other materials available in government an non governmental project libraries, publications of the district development , Jhapa, records of VDC , national planning commission and published and unpublished documents will be also reviewed to meet the objectives. 
3.5	Data Collection Methods
Primary data is collected form the following methods.
3.5.1	Interview
Primary data was primarily collected through the structured, semi structure and open questions by taking personal interview particularly with women. In the absence of the women, it was conducted with male who was able to give the response was also taken as the respondent. The questionnaire was developed to obtain both quantitative and qualitative information about the concerning the study. The respondent used the local unit of measurement for the quantities data and it was converted into standard unit later while processing. The questionnaire was developed into language and was also translated into English language in processing. Similarly, in the case of indigenous tribes unable to understand the way they were interviewed, help was taken by their neighbours or through their particular individual of their own mother tongue or language .the purposive sampling method was followed considering the probable respondents who were able to give the response getting free of time, convinced in conversation and enthusiastic about the subject matter. structures, semi structures and open questions were asked form a developed questionnaire to explore the different status of respondents, attitudes, belief, and concept upon participation representation, roles, responsibilities and authorities while acting as a body member of the developed works and activities of a study area.
3.5.2	Observation
While interviewing with the respondents, the researcher observed and recorded the activities of women members and respondents, their socio- economic status before and after.
3.5.3	Key Informants Interview
The very tool being used to take out the more appropriate information and for the comparative study of concept and attitude of the respondent of different categories, such as the study of the real beneficiaries and social mobilized, leaders, youth and service holder has been recorded which information is supposed to triangulate the information of the respondents’ key informants.
3.6	Data Processing
After the editing and coding by cross checking of the data form the completed questionnaire they were classified into different  categories according to different socio- economic characteristics of the respondents such as land holding pattern, income level, occupational status of the study area.
3.7 	Data Analysis and Presentation
It is very sensitive part of the research where the gathered data and information are organized after analyzing and processing through different methods, collected and recorded primary and secondary types of data and information during the study were processed through the different ways like validation, editing and coding at first and simple tabulation and socio- economic information were used for the analysis of the subject under study. 

CHAPTER - FOUR
INTRODUCTION OF (NARI BIKASH BACHAT SAMUHA) NBBS
4.1	Introduction
NBBS was establishment on 18 Paush, 2052 6 Jesth, 2056 B.S. At the time of establishment, there were 28 members. But there are 412 members and 300 household involving with their journey. Around 15 thousands people are directly and indirectly benefited till the reporting date. NBBS has been working as a representative member of NBBS (Biratnagar)since 19 Srawan, 2061 B.S. Purpose of lending the loan of NBBS is for Goat raising, Pig farming, Livestock, Vegetable farming, Foreign employment, Business and emergency household expenses.
Only the shareholder can take the loan from NBBS and he should be a regular member of the rural saving organization. He should save regularly according to the rule and regulation of NBBS. To provide the loan, management may take the collateral securities if the demand is higher then savings. According to the NBBS procedure, loan disbursement is made at the canter meeting and manager issues the demanded loan.
Vision:
NBBS is directive under the value and norms based financial services of the organization for socio –economic upliftment of its member.
Mission:
To promote and strengthens members and organization by mobilizing savings and credit on productive community based eco-opportunity activities.
Specific objectives:
Society precedes their objectives for the main purpose of socio-economic benefits to their member, which has given below;
1.	To promote the habit of saving by arising self-dependency, co-operation with involving among their communities.
2.	Provide competitive interest rate for their regular savings.
3.	To motivate the concept on self-dependence and self-confidence to their members.
4.	Provide necessary support and information to enhance the income generating 	capacity.
5.	Operate various activities to improve the socio-economic status.
6.	Adopt central union membership for competition national and international level in respect of rural public.
7.	Adopt donation of donor agencies with no conditional provision.
8.	Making rural saving network with local, regional, national, international level for fulfilments of our objectives.
9.	Operate daily service of our members to their prosperity and development with following co-operative act, rule and regulation as well as it can procedure 	all economic activities as a person to the name of NBBS.
10.	Provide cooperation to the members for their socio-economic prosperity.
11.	The society can gain and provide loan to the other organization.
12.	The society can gain and provide loan the other organization.
4.2	Study Area
The selected research site of the project is working area of NBBS. Its working areas are warding 2,3,4,5,7,8,9 Lakhanpur VDC of Jhapa district. This area is also located at the altitude of 665 meter from the sea level. Total population of the VDC is 18852. 
4.3	The Organizational Structure

Account

Tech.

Loan

Savings

Stoe

Executive Committee

Chairperson

Manager

General Assembly

Admin

Account Supervisory committee

-Loan sub-committee
- Education sub-committee
-Youth mobilization subcommittee
- Women mobilization subcommittee
-Project survey and analysis sub-      committee
-Loan utilization supervisory sub-commite

In the Organizational structure,the general assembly is the supreme body .the annual assembly of NBBS  is held once a year and all the member should participate in the meeting.The executive committee is designed to implement the policy and budget dicision passed by the General assembly.General assembly makes the different  sub-committee for four year.Chairperson employes to the manager and manager appoints to the other staffs.Every staffs is responcible for the manager. Manager works as a secretary. All committees members provide volunter service to the organisation.
4.4	Bank Accounting System
An amount  has opened in the name of NBBS in Mechi Cooperative Organization Jhapa . The banking operation is done in unified signature of chairperson and Manager of NBBS .All the Information and documents are handled by  the Manager and has to present the information  at the regulat meeting.
4.5	Savings Policy 
Saving is the main source of capital formation .There are several policies have been formulated for different savings.
S.N.	Types	Minium Saving and period	Collection Method 	Interest Rate
Yearly	Loan for Group guarantee(at least 5menbers)	
1
	Daily Savings	Rs-10,One year	From Staffs	10%	90%Loan provide after3months savings	
2
	Weekly Saving pln.	Rs-25 and     5   years	From staffs	9 %	90%Loan provide after3months savings	
3	Monthly Saving pln.	Rs-100 &5yrs	From staffs	8%	90%Loan provide after3months savings	
4
	Child Saving pln.	Rs-25for 1 times up to 15yrs	From Guardian to office	10%(Spend10%of total interest for child welfare)	              _	

5	Current Saving	Rs-100to 1500000.one at a time and one month	From office counter	         _	         _	
6	Khutruke Saving	Any ammount(Basic balance Rs-500)	 From staffs per 5 months	7%	80%Loan provide 	
7	Volunter Savings	Rs-100 for 1Times(Basic bal.Rs-500)	From office counter	7%		
8	Adult Savings	Rs-50 at a time(Rs-1000yearly up to 60 years)	From office counter	12%	             _	

Each savings plan;
Pass book charge Rs-15
Form chargeRs-10 only.
9. Home Wife Savings:
Savings Rate	50	100	200	300	400	500	Interest Rate	
Yearly	1	1	1	1	1	1	9%	
	2	2	2	2	2	2	9.5%	
	3	3	3	3	3	3	10%	
	4	4	4	4	4	4	10.5%	
	5	5	5	5	5	5	11%	
	6	6	6	6	6	6	11.5%	
	7	7	7	7	7	7	12%	
Source, Field Survey, 2008
Other facilities:
•	Every year provides skilful training as a need of women.
•	Provide insurance for possible domestic incident.
•	Provide double loan of savings in a group guarantee for the purpose of productive business plan.
•	Every year provides loan for one person to study technical education and skilful training.

10.	Periodic Savings:
1. Minimum 3 thousands in a time the minimum period of 3 months.
S.N.	Period of savings	Payment with interest and principal	Only interest of Payment	
1
	3 Months	9%	Three months	six months	year	
			-	-	-	
2	6months	9.5%	8%	-	-	
3	9 Month	10.5%	9.5%	10%	-	
4	12 Month	11%	10%	10.5%	-	
5	2 Years	12%	10.5%	11%	11.5%	
6	3 Years	12.5%	11%	11.5%	12%	
7	4 Years	13%	11.5%	12%	12.5%	
8	5Years	14%	12%	12.5%	13%	
2.	After 5.5 years, we can withdraw double payment of principal balance.
3.	Free incident insurance in an excess savings Rs-50000.00.
4.	Loan provides 90% of periodic savings balance with collateral on receipt.
4.6	Landing Policies of NBBS
The main objective of collecting is to distribute it as loan to its member for their economic improvement through the NBBS imposes a certain rate of interest on its disbursement; it has saved its members from the high interest rate of the informal traditional money lender.
The loan has to be provided to the members according to requirement and priority. 
4.7	The Nature of Loan
The nature of loan may be different according to their need or use for which the loan is being provided by NBBS. The types of loan can be classified according to the amount and nature of the loan.
S.N.	Types of loan 	 Total limit 	Loan Period	Interest Rate	Grace 	Service charge	
1	Income Generating	75%					
-	General		18 month	17%	-	0.075%	
-	Deprived class		24 month	12%	15days	-	
2	Social loan	3%	9 month	18%	-	0.075%	
3	Casual loan	2%	9 month	16%	7days	-	
4	Educational (Tech\Skill)	0.5%	36 month	5%	-	0.075%	
5	Hierpurchase	7%	18 month	18%	-	0.075%	
6	Home &Land	12.5%	12 month	18%	-	0.075%	
Source, Field Survey, 2008
4.8	Nature of Collateral
•	Member group guarantee
•	Share capital and Savings
•	Land and Home

4.9	Loan Approval Right
S.N.	Nature of Loan	Manager	Chairperson	Executive Committee	
1	Income generating				
	General	Up to 10,000.	Up to 30,000	Above 30,000	
	Deprived Class 	Up to 10,000	Up to 20,000	Above 20,000	
2	Social	Up to 5000	Up to 15,000	Above 15,000	
3	Casual	Up to 10,000	Above 10,000	-	
4	Educational	Up to 10,000	Above 20,000	Above 20,000	
5	Hierpurchase	Up to 20,000	Above 40,000	Above 40,000	
6	House & Rent	Up to 15,000	Above 40,000	Above 40,000	
Source, Field Survey, 2008
4.10	Penalty on Loan over due Amount
Months	Instalment basis loan	Other loan	
I	1%	2%	
II 	-	3%	
III 	-	4%	
After III Months	-	5%from the months to till the repayment’s	
Source, Field Survey, 2008
4.11	Loan Repayment Process
1.	Manager should send memorandum letter to the debtor before 15 days of last repayment date.
2.	Manager should give pressure letter after crossing 15 days of promise date.
3.	Manager should precede second pressure letter as for sub-committee decision after crossing 45 days of promise time.
4.	After 7 days of third letter, should precede last pressure letter to the debtor as well as witness and Guarantors.
5.	If not repayment, should precede notice of 35 days, 15 days, 7 days after last pressure letter.
If not obligate the above mentioned regulation in context of debtor, NBBS should precede public auction and necessary procedure according to Co-operative act 2048.
4.12	Division of Net Income
Reserve fund will be 25% of Net Income .After deduct Reserve fund, remaining fund will cover 100% for the following topics:
S.N.	Types of fund	Percentage with deduction R.F. (75%=100%)	
1	Share Dividend Fund 	20%	
2	Protective capital reverse fund (Sangrachit pugi phirta kosh)	25%	
3	Staffs  Bonus Fund	15%	
4	Deficit Fulfill Fund	10%	
5	Member Education  Fund	10%	
6	Dhuvant loan Fund	!0%	
7	Institutional Dev.Fund	10%	
Total		100%	
Source, Field Survey, 2008
4.13	Community Support Activities 
1.	Women Empowerment Program(training, facilitation and awareness raising)
2.	Ceremonial Funds within members
3.	Funds for Miserable conditions of members, starvation, fire, death, flood etc.

CHAPTER - FIVE
DATA ANALYSIS MAJOR FINDINGS
This research has been conducted on the primary as well as secondary data. All the primary data are collected with the help of questionnaire and field survey in the study area.
The field survey has been conducted in Lakhanpur VDC, Jhapa district of Mechi Zone and from 2065 October to 2065 December, the questionnaire has been filled by individual meeting with members and staffs.
Total members are 412 till 5 Jestha, 2065, respondents are randomly selected. Total respondents of my research are 30 Numbers .An attempt has been done no to select the respondents from same group .The research is mainly based on the primary data.
5.1	Composition of Respondents by Sex
The biological difference between male and female is called sex. Sex is one of the important parameter which has been playing a vital role in every aspects of social life.
Table 5.1
 Composition of Respondents by Sex
S.N.	Sex	No. of. Res.	Percentage	
1	Female	22	73.33	
2	Male	8	26.66	
 	Total 	30	100	
Source: Field Survey, 2008.
The table 5.1 remarks that there is quite unequal distribution of population of the respondents out of the 30respondents. 22 respondents were female, and rests of the 8respondents were male. According to the purpose of the researcher quite large portion of female was taken due to the need based gender assessment. Owing to high literacy status of people, no any of the problems occurred while collecting the information with the respondents except some illiterate female respondents displayed their shyness and voiceless ness.
Figure 5.1
Composition of Respondents by Sex

73.33%

26.66%

1

2

Source: Field Survey, 2008.
5.2	Caste-ethnic Composition
During the research study different types of caste and ethnic groups were found as there is diversity in caste ethnicity, language, culture and tradition in a community, society or a geographical location. All the system of socioeconomic living varies according to the norms and values of every distinct nature of a community. In the study area majority of the respondents represents from Brahmin, Chhetri and Janajti ethnic group. In different ward of the VDC the different types of caste ethnic groups, one of the most appreciable matter of the area is that there is no any domination of particular community such as there is a harmony amongst the Brahmin, Chhetri and Janajati community, but still there is a domination to the marginalized dalits and indigenous people who are socio-economically, culturally and politically back warded.
Table 5.2
Composition of Respondents by Caste Ethnicity
S.N.	Caste-ethnicity	Res.	Percentage	
1	Brahmin	9	30	
3	Chhetri	7	23.33	
2	Janajati	6	20	
4	Indigenous	5	16.66	
5	Dalits	3	10	
	Total	30	100	
Source: Field Survey, 2008.
The table 5.2 shows the composition of the respondents by caste ethnicity which ultimately represents the existence of caste-ethnic groups in variation and the majority and minority have been affected in the socio-economic living. The major three caste-ethnic communities occupying  30% by Brahmin out of total population, 23.33%by Chhetri and 20% by Janajati (Rai, Limbu, Gurung, Magar, Tamang)  who are in quite good condition in terms of  socio-economic living exist in the study area, but still there are some lacunae and obstacles on status of awareness on gender mainstreaming. The marginalized caste-ethnic groups, Indigenous (Dhimal, Tajpuria, Rajbansi, Satar, Musahar) occupying 16.66% of total population of the study area as well as 3% population of Dalits also exist in the study area. Low rate of literacy, lack of assets and authority and power that have been limited them in a certain socio-economic boundary which has resulted to create the hindrances in women’s socio-economic status in all caste-ethnic groups.
5.3	Educational Status
In the research study, the overall literacy rate in different category of the respondent as caste-ethnic group and sex wise was tried to dig out to examine the consciousness of respondents regarding the different aspect of the concerns of the research study which is a real profile of the particular community and society. Through the very parameter, it is assumed that the education is one of the key variables affecting women’s status in the study area. An access to education on the basis of gender in category such as gender in caste ethnicity, and sex are the main aspects through which the uplift of women can be enriched to gender-equity, social harmony and justice.
Table 5.3 
Status of Literacy of Respondents by Sex
S.N.	Sex	Res.	Literate Res.	Literacy Percentage	
1	Female	22	18	60	
2	Male	8	7	87.5	
	Total 	30	25	83.33	
Source: Field Survey, 2008.
The table 5.3 remarks the status of literacy of respondents by sex and out of 22 female respondents, 60% female are literate and out of 8 male respondents, 87.5% male are literate. So it shows the disparity and inequality in the access to education and status of literacy by sex in the study area.
Household works whereas the same age of male child desires the readymade foods and tidy clothes prepared by his mother and small sister. So the gender mainstreaming in practice gets started from a house with a behavioural approach of small portion of sorts in daily living.
5.4	Impacts on Land Ownership Pattern 
Main asset of the villager is land. Every person wants to buy more land than they have but due to low earning they could not so. After establishment of NBBS, they have borrowed loan to increase the earning. All the borrowers have not utilized their loan amount properly. They take loan for one purpose and make investments in another purpose such as to pay the previous loan of creditors, to meet domestic expenditures etc. Those borrowers who have properly utilized the loan amount could increase their earnings and then invest their earnings in land purchase. Some are land businessman and others are foreign employees. Those are increasing their property rapidly in a short period.

Table 5.4
Land ownership Pattern
S.N.	Land ownership group	Before	After	
		No of respondents	%	No of respondents	%	
1	Landless	6	20	3	10	
2	Up to 5 Kattha	3	10	4	13.33	
3	Above 6 to 10 kattha	4	13.33	5	16.67	
4	Above 11 to 20 Kattha	7	23.34	8	26.66	
5	Above 1 Bhigha	10	33.33	10	33.33	
	Total	30	100	30	100	
Source: Field survey 2008
Above table shows that before establishing the NBBS, landless person were more than the establishment of NBBS. Their might be various caused to decrease the landless persons but we can say strongly that the problem of landless is decreasing after the effect saving and credit policy of NBBS. The above mentioned data can also be presented with the help of bar diagram.   

Figure 5.2 
Land Ownership Pattern Before and After the Intervention of NBBS

5.5	Housing Condition
Housing condition shows the real economic status of the people (Kenya example of poverty). In the study area, we got various types of houses like cottage, mud wall, brick built, stone wall, brick wall, wall with RCC roof. If the earning improves, the housing condition will also improve. Whether NBBS has played significant role for improving the earning of villagers or not, it could be measured with the help of housing condition of the NBBS members. Following table shows the housing condition of the study area.

Table 5.5
Housing condition for the respondents
S.N.	Housing condition	Before	After	
		No of respondents	%	No of respondents	%	
1	Mud wall with thatched roof	6	20	2	6.66	
2	Wooden wall with tin roof	7	23.33	9	30	
3	Brick wall with CGIS	8	26.67	11	36.66	
4	Brick wall with RCC	9	30	10	33.33	
	Total	30	100	30	100	
Source: Field Survey 2006
Before establishment of NBBS, 6 respondents (20%) had the houses of stone mud wall with tin roof. After establishment of NBBS, there is an improvement in the housing condition of the members. The housing condition of the respondents of the study area has been improving now. 20% of respondents who had been living in the houses of mud wall with thatched roof but now there are only 2 respondents who have been living such kind of houses. After the establishment of NBBS, 33% has brick wall with RCC roof houses, where as before it only 9 respondents had brick wall with RCC roof house.26.67% and 20% respondents have brick wall with CGIS roof houses before and after the establishing NBBS.
5.6	Impacts on Treatment Capacity
The role of NBBS can be measured with the help of treatment capacity of respondents. Every person wants to go for better treatment if possible. For better treatment, sufficient money is needed .It is only possible when they have the sufficient earning. There we are describing about the treatment capacity before and after establishment of NBBS.
Table 5.6
Treatment Capacity
S.N.	Treatment Facility	Before	After	
		No of Res	%	No of Res	%	
1	Non visiting doctor 	9	30	2	6.66	
2	Visiting doctor	21	70	28	93.34	
	Total	30	100	30	100	
Source: field survey 2006
Above table shows that before establishing the NBBS, treatment capacity persons were less than the establishment of NBBS. There most be various cause why people visit doctor .one most important cause is sufficient earning. 
Table 5.7 
Responsibility Sharing on Indoor Household Works
S.N.	Status of Responsibility Sharing 	Res.	Percentage	
1.		Only by Female 	18	60	
2.		 Sometimes by Male 	4	13.33	
3.		Both Male and Female	8	16.67	
	Total 	30	100	
Source, Field Survey, 2008.
The table 5.7 shows us clearly the responsibility sharing on indoor household works that the majority of female are still facing the heavy workload in the family. Both the male and female who are aware of the household responsibilities are 24% of the total respondents, 49% of the total respondents, only female are facing the burden of household work and 26.66% of the total respondents are involved in sharing the responsibilities to some extent.  The household works such as preparing food, cleaning the house, washing cloths, rearing children are all carried out by female most. We can clearly argue that with the lesson and behavioural approaches of parents, children are also sketching the sociological role gender on the basis of sex. A small daughter of 5 years of age helps her mother to her every
5.7	Impacts on Occupation
After the intervention of NBBS some significant impacts on occupation can be seen in the study area. The study areas has not fully associated with the agriculture, some are Govt. Job, labouring, business etc.
The following has been prepared by the researcher on the basic of main occupation of the villagers.

Table 5.8 
Impacts on Occupation
S.N.	Main Occupation	Before	After	
		No of res	%	No of res	%	
1	Traditional agriculture	16	53.33	8	26.66	
2	Goat farming	4	13.33	6	20	
3	Pig farming	2	6.66	5	16.66	
4	Poultry  farming	2	6.66	4	13.33	
5	Veg.Farming	1	3.33	2	6.66	
6	Business	1	3.33	2	6.66	
7	Daily wages labour	3	10	2	6.66	
8	Government Job	1	3.33	1	3.33	
	                        Total	30	100	30	100	
Source: Field Survey 2008
The table 5.8 describes the impacts on occupation after the intervention of NBBS in the study area. As shown in the table 50% traditional farmers has been reduced whereas, the goat farming has increased by about 7%,pig farming by 10%,poltry farming by two folds, veg farming and business doubled. This all was made possible by the awareness created by NBBS, its modern approach of utilization of the micro-credits.

Figure 5.3 
Bar Diagram of Occupational Pattern

5.8	Monthly Earning of the Respondents
People’s status indicates by the monthly earning. The focus point of the study is the impact of economic and socio status of the villagers. There might be so many factors, among them earning is the main factor of this study. NBBS has played significant role to improve the earning or not. This is focusing point of this study. The following table shows the monthly earning of the respondents. Monthly earning indicates the people’s economic status.  

Table 5.9 
Monthly Earning
S.N.	Income group	Before	After	
		No of res.	%	No of res.	%	
1	Up to 2500	8	26.66	4	13.33	
2	Up to 3500	7	23.33	9	30	
3	Up to 4500	6	20	7	23.33	
4	Up to 5500	5	16.66	6	20	
5	Above 5500	4	13.33	4	13.33	
	Total	30	100	30	100	
Source: Field Survey 2008
This data can also be presented with the help of following bar diagram too.
From the above table, it is clear that there were 8 respondents who had the monthly income below Rs 2500 before establishment of NBBS but only 4 respondents are there under the income group Rs 2501 to 3500 after establishment of NBBS. The income group3501 to 4500 there were 7 respondents but now we get 9 respondents. 4501 to 5500 income group, there were 6 respondents but now there are 7 respondents. There were 4 respondents before establishment of NBBS and new we get 4 respondents in the 5501 to above income group, we can say that monthly income is increasing after establishment of NBBS.
5.9	Monthly Saving
If a person has more earning, he can save more earning. Saving depends on the habit of the person. Up to some extent, one who has lower income if he has the saving habit he can do more saving. Monthly saving is also one variable, which measures the earning of the person. Saving can be made through earning or saving through reducing expenses.
1)	Saving through increasing earning
One can save more money when he /she has the enough earning .If earning increases his saving will automatically increases .Hence expenses are assumed as constant due to high earning and constant expenses. The balance amount is known as saving.
2)	Saving through reducing expenses
Saving habit motivates to the person for reducing the unnecessary expenses. Due to reducing over expenses, he can make the saving too. Here earning is assumed as constant. Although one has the low earning, he can also save the more money than higher earning person due to saving habit.
Following table shows the saving structure of the study area of project area before and after establishment of NBBS.
Table 5.10 
Monthly Saving Structure
S.N.	Monthly Saving group	Before(With them)	After(in NBBS)	
		No of respondents	%	No of respondents	%	
1	Up to 300	13	43.33	6	20	
2	Rs301-600	7	23.33	9	30	
3	601-900	6	20	8	26.66	
4	901-1200	4	13.33	7	23.33	
	Total	30	100	30	100	
Source; Field Survey, 2008
The table 5.10 depicts the monthly saving structure of the respondents. In the 301 to 600 saving group, there were 13 respondents and 6 respondents after establishing NBBS. Above Rs 301-600 monthly saving group, there were 7 respondents and now 9 respondents. In Rs 901 group 10% respondents have been increased. So, we can say that in the study area, respondent’s habit of saving is in rising trend. It is the positive implication on the economic aspects of people in the study area.
5.10	Utilization of Saving
Efficient utilization of saving creates high earning of the person .In other hand; idle money creates the problem of insecurity. There are so many factors which encourage person for the efficient utilization of the saving money .NBBS is also one factor, which has played significant role for efficient utilization of the rural saving.
Following table shows the utilization of the saving before and after establishment of NBBS.
Table 5.11
Utilization of Rural Saving
S.N.	Utilization of rural Saving	Before	After	
		No of res	%	No of res	%	
1	Ideal Saving	8	26.66	4	13.33	
2	Basic Balance	10	33.33	12	40	
3	Investment on business	12	40	14	46.66	
	Total	30	100	30	100	
Source: Field Survey 2008
Figure 5.4 
Pie Chart Savings Utilization

Above table, bar diagram and pie chart shows the utilization of saving by the respondents of the study area. Before establishing the NBBS, there were (8) 26.66% respondents who didn’t invest and balance in the bank but later it decreases in number of 4(13.33%) after establishing the NBBS. The respondents who balanced in the bank were (33.33%) before and (40%) respondents balance after establishing the NBBS. So Temporary saving money has been increasing before (12%) and later it reaches 14% respondents. So we confirm that the trend to invest money is increasing and villagers do not want to keep the money idle. According to above analysis, it is clear that NBBS has played the significant role for efficient utilization of rural saving.
5.11	Property Ownership
Property depends on the earning of the person .If one has the high earning; his properties will also more .So increment in property denotes the increment in earning too. The world “property” is used here for all kinds of physical assets such as houses, cattle’s, luxurious goods, land band balance etc. For the study purpose five property classes have been categorized.
Below given table shows below mentioned the property in liquidity and number of respondent lies under these classes before and after establishing of NBBS.
Table 5.12 
Property Ownership Pattern (In Rs)
S.N.	Property Ownership pattern	Before	After	
		No of res.	%	No of res.	%	
1	Up to Rs 50,000.00	13	43.33	7	23.33	
2	Above Rs 50000-10000	11	36.6	14	46.66	
3	Above Rs 10000-20000 lakhs	5	16.66	8	26.66	
	Total	30	100	30	100	
Source: Field Survey 2008
Table 5.12 reflects the economic strengthening in property ownership of the respondents involved in NBBS. In group of up to Rs 50000 a decrease appear by the reduction of 20% whereas, in the group of 50000-10000 and 10000-20000, respondents were rose by 10% respectively.
5.12	Saving and Credit Analysis of NBBS
5.12.1	Purpose of Loan Taking
Finance is essential to do any kind of economic activities. To provide financial facilities to its member to improve their economic status by various activities is the motto of NBBS.
Table 5.13
Purpose of Loan Taking by Member of NBBS
S.N.	Purpose of Loan taking	No. of respondent	Percentage	
1	Agriculture /Husbandry	12	40	
2	 Local level business	2	6.66	
3	Cottage Industry	3	10	
4	Construction 	4	13.33	
5	Foreign Employment	6	20	
6	Domestic ,Socio &Cultural purpose	3	10	
Total	30	100	
Source: Field Survey 2008
The table 5.13 describes the purposes of loan taking by the member of NBBS. The majority of the respondents had taken the loan on agricultural purposes. They covered 40% of the total respondents whereas, for the foreign employment 20% respondents, construction 13.33%, cottage industry 10% respondents took the loan.

Figure 5.5 
Bar diagram of Loan taking Pattern

5.12.2	Repayment of Loan 
The loan payment is another aspect of lending activities of any financial organization. If the loan is not paid on time it will not only affected the turnover or capacity of financial institution but also disturbed the borrowing and lending environment. The table shows how they repay their loan to NBBS.
Table 5.14
The Loan Repayment by NBBS Members
SN	Sources of Repayment	No of respondent	Percentage	
1	Selling Agriculture product	11	36.66	
2	Profit from business	2	6.66	
3	From Salary	5	16.66	
4	Selling Assets	6	20	
5	Other Sources	6	20	
Total	30	100	
Source: Field Survey 2008.
The table 5.14 shows the sources of loan repayment by NBBS member in the study area. Being involved in agriculture the majority of the respondents were found that they were paying the loan from their agro-based products. Similarly, from salary 16.66, selling assets and other sources 20% and profit from business 6.66% respondents had paid the loan taken from NBBS.
Figure 5.6 
The Loan Repayment by NBBS Members

Table 5.15 
Reasoning for Loan Taking from NBBS
S.N.	Reasons for loan taking	No of responds	Percentage	
1	Easy Access	7	23.33	
2	Low interest rate	8	26.66	
3	No need of collateral	6	20	
4	Difficult to take loan from other institutions	9	30	
Total		30	100	
 Source: Field Survey 2008
The table shows that 23% members borrow the loan because of easy access to NBBS.26.66% because of low interest rate and 20% because of no need for collateral to loan. Last but not least 30% of the total respondents felt that other institutions do have harder provision for taking loan so they took the loan from NBBS. Overall NBBS is an apt solution of saving and credits of the rural people in the study area.
5.13	Member Participation 
It is generally recognized that people’s participation can ensure sustainability, make development activities more effective, and help to built local capacity and awareness also. The table shows members’ participation in community development activities organized by NBBS.
Table 5.16 
Members Participation in various activities organized by NBBS
S.N.	Nature of participation	No of respondents	Percentage	
1	Mostly Participate	25	83.33	
2	Occasionally	5	16.67	
3	None	-	-	
Total	30	100	
Source: Field Survey 2008                                       
The table shows that 83.33 % of the respondents mostly participate or lead various activities (training, workshop, visit, scholarship and others saving &credit) and 16.67% of members participate occasionally in such activities.
5.14	Constraints and Hindrances 
During the study the respondents were asked to explore the constraints and hindrances regarding the micro-credits operation and its development. The financial developments through the induced activities are launched in an adequate number. The lack of exposures and limited supports with the policies and programs by the government and associated organization is the main constraints and hindrances felt by the respondents who have been involved in micro-credits in the study area.
Table 5.17 
Constraints and Hindrances on Micro-Credits
SN	Responses	Res.	Percentage	
1	Lack of Exposure	6	20	
2	Limited Support From Government	7	23.33	
3	Weak Market Mechanism	8	26.66	
4	Less induced Activities	9	30	
	Total 	30	100	
Source: Field Survey 2008
Figure 5.7 
Constraints and Hindrances on Micro-Credits

The table 5.17 shows the constraints and hindrances on micro-credits. Out of 30 respondents 20% felt that the exposures caused the problem regarding the operation and development of micro-credits whereas, 23% of them argued that limited support of government is not adequate to develop the micro-credits program on rural area. Similarly, 27% respondents said the product of the farmers and micro-entrepreneurs could not get the real price due to the weak market mechanism and lastly 30% viewed that the induced activities through micro-credit are insufficient so these should be enhanced according to the need based approach.

CHAPTER - Six
SUMMARY CONCLUSIONS AND RECOMMENDATION
6.1	Summary
This research study was carried out to reflect the “socio economic impact of women based micro credit” .This study is mainly based on primary data which is obtained form field study 2008. The primary data was collected by means of “questionnaire survey, key informants interview, observation “.the major summary which reflected the” socio- economic impact of women based micro credit” led to make the following summary.
•	In NBBS have many types of savings products but NBBS has implemented five savings products.
•	Some of the disburse loan of NBBS has not been utilized properly by the client or in other word, the client has not used in what objectives he/she had taken loan.
•	NBBS has given priority for collateral and savings of six months on policy, but neglect the personal attitude of the borrower.  
•	Every year passes the certain budget for the community development activities. Most of the activities are running same amount and activities on every year such as, Gender awareness training, agricultural training, environment and sanitation program at local level.
Policies are the different product but implemented plans are only limited 
•	Lending loan- Loan providing only for members. Members 	should also be minimum three months savings.
•	No Knowledge about the policy: Members as well as some staffs have any knowledge about savings, landing policy and other low and regulation about NBBS.
•	Aging of loan: There is no provision of over due loan classification, as well client ranking. Must be provision of reward and punishment as well index of good performance client.
•	There is no loan loss provision account and no efficient provision about it. 
•	Evaluation, monitoring and reporting: There is no evolution, monitory about purpose of loan landing. Most of the loans are misusing. Such client can get more chances of loan loss events.
•	Lack of Viability plan and business plan: There is no available of NBBS about increasing share holder, loan disbursement, size of loan, cost of loan and getting income. Even client has no submission business plan to achieve goal.
•	Lack of training: There is no providing necessary training and information about amendment policy, low and regulation to the staffs and members. 
•	Some discriminate about cast for service providing.
•	Division co-operative Office meets NBBS for monitoring fund and steering committee only twice a year.
6.2 	Conclusions
Despite the significant role of micro credit programmes in Nepal. Form the perspective of socio economic impact .In Nepal there are tens of thousands of unregistered saving credit groups. Some of which are quit large and formal, even though they are not registered either as NGOs or co-operatives, the recent study has estimated that the existence of 12158saving and credit organization in Nepal of this, about 5000 were promoted by ingos,5500 by NGOs and 3500 were self emerged . According to social welfare council’s estimate, there are 1800ngos of which 4017 are associated with socio welfare council’s. In my study area, at the time of establishment of NBBS in 2052, there were 28 members. But there are 412 members and 300 household involving with their journey. At the same time the raped growth of population have positive impact with the help of NBBS in social and economic status.
The respondent of NBBS literacy status of women is one of the key affecting factors. So that socio economic status of women is very poor. But this NBBS help all women to uplift their status with doing different kinds of economics activities. So now we can find all the women in study area are doing any kinds of works to fulfil their desires and literacy rate is also increasing. If literacy rate is increase than economic condition will also increase. To bring women in development process we most give first prioritise to micro finance. This research may helps planners and policy makers for design policies and programs for the development of women.  
6.3	Recommendations
Based on the summary and conclusion presented in the previous sections, the following recommendations can be made for the effectiveness of women based micro-credit to increase its positive impact all over the country.
•	All savings product have to be implemented otherwise, ideal savings products should exit from the policy.
•	Loan should properly inspection; otherwise it will be chances of misuse. Loan should be properly utilized in what purpose; he/she had taken loans.
•	NBBS also have to give priority for personal attitude of the client, never the less collateral and savings only. 
•	It is not better to allocate the budget for same community support activities, it will be better to give priority for other social welfare activities such as sanitation, awareness and education.
•	Regarding rule and regulations, information and knowledge should be transfer among the members. 
•	Co-operative should be religious and political neutrality. NBBS has some discrimination towards cast regarding service provision. 
•	NBBS should mention about cast, religion and political neutrality in its policy.
•	Provision flexible policy towards pro poor, deprived, and landless would be better. 
•	Minuiting and decision should be transparency to the staff and member. There is some gap of information.
•	Alternative leadership should be developed by NBBS.
•	Open policy would be better for loan provision except members.
•	There is lack of aging loan. There is no policy implemented and classification of borrower.
•	Black list should be notice for the harmful borrower and reward and punishment provision would be better for the excellent and harmful performance client.
•	Monthly, quarterly, half yearly performance report should prepare and send to the concerned office, will be bitter for the further transparency and prosperity.
•	Mutual co-operation would be better among micro credits of the district.
•	Provision of viability plan of the borrower would be better to achieve goal. It is better to maintain for the following days.
•	Training should provide about its profession of staffs and member. There is finding inadequate training.
•	 There should be monitoring about the loan from chair person and loan committee.
•	District co-operative division office should monitor the saving fund and utilizing fund at least your times a year. 
•	Maintain account day to day and install in computer would be better for economic transparency.
•	Directly community support performance for the beneficiaries group would be better except saving and credit activities.
•	Rule and regulation should be followed strictly for the fraud co-operative. 

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WWW.nefscun.org.np-history of saving and credit cooperatives in Nepal.

	

ANNEX- I
QUESTIONNAIRES FOR THE MEMBER OF NBBS
1.	Personal Information
2.	Name of the respondents:				Ward no:-
	VDC/Municipality: -					Age:-
Locality:-
3.	Caste/Ethnic group
4.	House hold size:-
I) Small 	II) Medium	III) Large
5.	Land ownership pattern:-
I)	Landless			II) Up to 5 Kattha 	III) 6 to 10 Kattha 	
	IV) 11 to 20 Kattha 	V) Above 1 Bigha
6.	Housing condition:-
	a) Mud wall with tratched roof		b) Stone mud wall with tin roof 
	c) Brick wall with CGIS 			d) Brick wall with RCC
7.	Treatment capacity:-
a) Non visiting doctor	b) Visiting doctor
8.	Educational status:-  
a) Illiterate		b)	Literate 		c) Educated 
9.	Toilet Position:-
a) No toilet		b) Temporary toilet	c) Permanent toilet 
10.	Occupational Pattern:-
	a) Traditional agriculture	b) Goat farming 
	c) Pig farming			b) Poultry farming
	e) Vegetable faming		f) Business
	g) Daily wages laour		h) Government job

11.	Monthly earning
	a) up to 2500			b) up to 3500
	c) up to 4500			d) up to 5500 and above	
12.	Monthly savings
	a) up to 300		b) Rs. 301-600
	c) Rs. 601-900	d) Rs. 901-1200	
13.	Utilization of savings
a) Ideal savings			b) basic balance
c) investment on business 	
14. 	What was your property ownership pattern? Before and after joining the 	NBBS?
	a) up to Rs. 1500,000			b) Above 1-5 lakh to 3 lakh
c) Above Rs. 3 Lakh to 4.5 Lakh	
d) Above Rs. 4.5 lakh to 6 lakhs		e) Above Rs. 6 lakhs
15.	What is the purpose of loan taking?
	a) Agri/hubandary		b) Local level business
	c) Cottage industry		d) Construction 
	e) Foreign employment	f) Domestic, socio-cultural purpose
16.	How do you repay the loan?
	a) Selling agricultural product	b) profit from business
	c) From salary			d) selling assets 	e) Other sources
17.	What is the reason for taking loan from ………
	a) Easy access			b) Low interest rate
	c) No need of collateral		d) Difficult to take from other institute
18.	Do you participate in any programme which is held by NBBS?  a) Mostly participate		b) Occasionally participate c) None

ANNEX-II
SAVING AND CREDIT SURVEY QUESTIONS FOR NBBS
1)	Personal information
2)	Name of the respondent:
     VDC/ Municipality					Ward:
     Locality:						Age:
3)	Cast/ ethnic group:
4)	In which designation do you serve now?
5)	When and how do you collect daily saving?
a) Morning 	b) Day 	c) Evening 	d) Leisure
6)	How much do you collect daily savings?
a) 1-50		b) 51-100	c) much more 
7)	How many share holders have increased from last three your?
a) 059/60….	b) 060/61… c) 061/62….
8)	How many savings do you collect from last third years?
a) 059/60….	b) 060/61… c) 061/62….
9)	How many shares do you increase for last three years?
a) 059/60		b) 060/61 	c) 061/62
10)	How many loan do you disburse since last three years?
a) 059/60		b) 060/61 	c) 061/62
11)	How many loan do you repay since last three years?
	a) 059/60		b) 060/61 	c) 061/62
12)	How many out standing loan of your organization since last 3 	years?
	a) 059/60		b) 060/61 	c) 061/62
13)	What is the repayment rate of your organization since last 	three years?
	a) 059/60		b) 060/61 	c) 061/62
14.	How many overdue amount of your org since last three yeas?
	a) 059/60		b) 060/61 	c) 061/62
15.	How many depositors has increased year?
a) 059/60		b) 060/61 	c) 061/62

ANNEX-III
QUESTIONNAIRE FOR DIVISION MICRO-CREDIT OFFICE
1.	Name of respondent:						Date:
	Designation:					Education:
2.	How many times do you yearly inspection to the co-	operatives?	
	a) One times	b) Two	c) Three	d)More than
3.	In your opinion, do you tell me the times you need for the 	proper inspection with in a year?
4	What obstacles do you effect for regular inspection?
	a) Lack of budget 		  b) Lack of manpower 	
	c) Negligence of upper level	  d)  Existing insurgency problem.
5.In you opinion, what are the major constraints of NBBS?
a)	Lack of security b) Problem of loan c) Problem of necessary fund 
	d) lack of skill and knowledge of working committee and staffs.
9.	What types of contribution does NBBS play to the community? In 	your opinion.
	a) Self-employment	 		b) Micro enterprise develop	
	c) Help of the poverty reduction 	d) Access to the financial services
	e) End exploitation of local informal sector
10.	How many times do you organize training and workshop for such co-	operatives in a year?	
11.	Does NBBS follow the financial rule and discipline?  If not…….
12.	Do you have any fraud co-operative in your district? If yes, How many?
13.	In which category do you keep the NBBS in the district?
	a) - A		b) -B		c) -C		
14.	In your view, what types of step do we apply over fraud co-operative in 	our district?
15.	In your opinion what are reforms should perform for the following days? 	Do have any suggestion, state?