Economic Impact of Microfinance in Nepal (A Case Study of Ranibagiya Municipality, Rupandehi District)

Abstract

This study has been carried out on “Impact of Microfinance on Women Empowerment in Ranibagiya, Sainamaina” is carried out by using primary data collection in the field survey. The field survey covers Sainamaina Municipality-5,Ranibagiya. 160 women aged 23 to 62 years are selected under the purposive samplings, who have taken loan at least one time. The main objective of the study is to explore the impact of microfinance (MF)program for women empowerment in the study area.For the data collection, key informant interview, household survey and observation techniques are used and interview schedule and checklist are taken as tools. The statistical tools mainly percentage,correlation and regression analysis are used to analyze the data. SPSS computer has been has for the accurate calculation. To illustrate the research work,table and figures are used for data presentation. The study shows that majority of the women are literate. Before the intervention of the program, 58.82 percent of sampled women are engaged in agriculture and after the intervention of the program, 57.5 percent of the women are engaged to earn their livelihood. After the program, women are especially attracted towards the retail business and private firms which are economically benefited. Even if the members are in economical problems, they have been saving regularly which shows that the poor people also can save small amount of money regularly. The positive correlation between investment and changes in income level of the participants shows that the capability of the entrepreneurs for the repayment of the loan in due time is good. The saving and investment, high rate of repayment and utilization of loan have been satisfactory. This shows financial sustainability and viability of the program. However there is still room for improvement with regard to management of misuse of loan. The overall impact of the program is found to be satisfactory. Most of the participants of the survey have been able to increase their income and the program intervention has brought positive change in status of women.Increase in income along with empowering process increased in standard of living of women’s family which endeavored change in livelihood. The provision of loan disbursement to the women should be based upon the proper evaluation of the economic viability of the program. Training should be made well conscious about proper utilization and mobilization of saving and investment. The effort on monitoring and supervision should be increased. Credit should also be mobilized for developing socio-economic infrastructure.