Role of Microfinance in Poverty Reduction in Rolpa District

Abstract

ABSTRACTThis research gives the details information about the Role of Microfinance in povertyreduction in Rolpa District.One of the common solutions to resolve poverty, a bigissue in both Nepal and in the World, is national programs that have given smallcredit for the poor. The propose of this research to analyze the impact of MF inhealth and sanitation facility of the MFbeneficiary of Rolpa District, to analyzeimpact of MF in the Facility of loan of beneficiary of Rolpa District, to analyzeimpact of Microfinance in income level of beneficiary of the Rolpa District and toanalyze impact of the MF help to invest inBusiness to customer of Rolpa district.Thisresearch focuses onquantitative impact of microfinance program on participatingwomen of Rolpa district.This research is using descriptive research methodology forthe finding research objective. Using primarydata to collect questionnaire survey.120 respondent to response the questionnaire related with role of microfinance inpoverty reduction in Rolpa district. The findings were the importance of maintaining Women Savings and Credit Groups;the vulnerability context of the poor; the process of accumulation and interactionamong livelihood assets of members’ households; the combination of livelihoodactivities and the use of livelihood assets for maximizing income and minimizingvulnerability in order to reduce poverty. The study also shows emerging constraints ofthe process of MF in poverty reduction and perspectives of different stakeholdersrelating to MF. The thesis further finds that MF is a dynamic tool to intervene in theaccumulation and interactions among social, human, financial, natural and physicalcapital of poor women. However, MF has been a small scale and subsidized bydonors so the outreach of it needs interplay among formal credit institutions,extension, local organizations, MF researchers and appropriate policies. Based on the findings, it shows that majority of MF Customer are active inparticipation in MF program, but they didn’t have proper knowledge about the MFpolicies and function. Most of the MF have rejected male to participate in MFprogram only female people can participate in MF program.in this context we can seediscrimination with male and female to involve in MF program. Most of the Nepaleseinvestor are unknown about the rules and regulation of MF program.