GROWTH OF MICROFINANCE AND ITS IMPACT ON POVERTY ALLEVIATION

Abstract

Poverty is not only the issue of least developed countries. It is a global issue where huge amount of investment is poured for reduction of poverty. The main objective of the study is to to assess the status of progress achieved in poverty alleviation through microfinance programs of the Microfinance Institutions (MFIs) and /or Self-Help Groups (SHGs) in Nepal. Descriptive research design has been exploratory in the study. This design helps to understand the process of PAF in Bagmati rural municipality Lalitpur District. This study is based on descriptive as well as exploratory research designs. The sampling universe is the total number of people of this Bagmati rural municipality. The members of the team staff of Microfinance Company from this Bagmati rural municipality had been selected by lottery in this study. A purposive sampling technique has been employed for the selection of the study population. But members of a team of staff of Microfinance Company have been used for as respondents. The findings of the study show the importance of microinsurance, training and development initiatives, and remittance services within microfinance programs in facilitating income growth among participants. While microcredit and micro-saving did not show statistically significant impacts in this specific model, they still play essential roles within the broader context of financial inclusion and empowerment. These insights can inform policymakers and practitioners in designing more effective microfinance programs to support economic well-being and income stability among underserved communities