Economic Impact of Micro Finance on Urban Poorunder Rural Urban Patnership Programme (Rupp): (A Case Study of Putalibazar, Syangja)

Abstract

This dissertation has been prepared to study and analyzethe Economic Impactof Micro Finance on Urban Poor Under Rural Urban PatnershipProgram(RUPP)in Syangja. Micro Finance is most important tool to uplift theeconomic status of people especially to poor in developing country like Nepal.Several micro finance program are launched in Nepal, Micro Finance onUrban Poor Under Rural Urban Patnership Program(RUPP) in PutalibazaarMunicipality is also one of them. This study gives the information how the program has been launched there. The general objective of the study are toexplore the saving and credit status of tole lane organizations (TLOs)members under (RUPP),to analyze the economic up liftmen of (TLOs)members,to find out the major problems of launching the program andTLOs members. It is found that RUPP has been launched from 2060 B.S. and loan issueprogram from 2063/64. There are organized five sample teams out of 14,theyare Nilkamal, Melmilap, Sitala, Namuna(A) and Jagiti. Out of total 140members, the team-wise members are 40,35,30,20 and 15 in per sample teamsrespectively. Among the total numbers of all teams, 24 members areentrepreneurs and 116 are other community members. Loan is issued indifferent years from 2063/64 to 2066/67.Total Rs. 750000 loan is distributed indifferent sectors such as poultry farm, livestock, vegetable product andbeekeeping. Some problems are created at operation level of program like chicken andgoats die, ruing vegetables, program launched disorderly, traditionentrepreneur launching, lengthy process of loan disbursement, small scale ofloan amount, etc. ix So, some of the suggestions and recommendations are referred . Without theprovision of specific vocational training, loan should not be granted. Onlyrepayment is not the success of RUPP, there should be generation of goodincome by investing that loan. RUPP should establish the program of exchangeof skillful members of same territory. They possess the different skill likeexpertise in cash crops, pig husbandry, poultry farming, beautician, PCO,tailoring etc. Loan should be granted to single member also, if he/she has willingness andskill to do something. If the borrowers did not repay the loan in time, theyshould be motivated to repay in time by adopting different mechanism. Fieldvisits showed that the landlord and avoid businessman also got the loans whowere not the targeted groups. Actually such miss use of loan should beprohibited. Small amount of loan cannot enough to promote the largeoccupation in starting so Loan amount should to be increased as much asrising of price highs in market. Lengthy process for a loan disbursement makethe poor difficult for receiving the loan in time so, fast and shortcut methodshould be launched further motivation. Lack of awareness of repayment theloan repayment can’t launched timely so awareness program should to belaunched effectively. Ignorance about the medicine use, time, Quantity andother take care activities on the live stock and vegetable product occupation,chicken and goat are dead and vegetable could not development as much asneed. There should be coordination among the groups of TLO entrepreneursand other community members on regulation and management for sharing ofbest practice of program each other from RUPP to ensure its effectiveness. RUPP should enlarge microfinance program massively. Least number ofentrepreneurs have been got loan receive opportunity. By far percentage ofentrepreneurs out of rich from this opportunity. It cannot uplift the economiccondition of the poor. Loan duration should to be long, at least 3 years. Loanrepayment is based on benefit after living expenditure so it is difficult toreturn loan in time with in this short period of 2 years.