Micro Credit And Its Impact on Rural Women Empowerment (A Case Study of Soyang VDC, Ilam District)

Abstract

The Thesis entitled Micro Credit And Its Impact on Rural Women Empowerment(A Case Study of Soyang VDC, Ilam District).Nepal is an agricultural based nation in which more than 76 percent of the labor force participation is in agriculture, agriculture based programs such as credit cooperatives were initiated as a first step in microfinance in the 1950s with the aim of providing credit to poor villagers for agriculture purposes (center for microfinance,2007). Several other organizations such as Small farmer development programmer was started under Asian Development Bank/Nepal (ADB/N) in 1975. The intensive banking programmer (IBP) was established in the 1981 with an aim of providing loans to all types of work force, and tired to involve commercial banks in micro-credit (center for microfinance, 2007). In 1992, the Grameen Banks model of microfinance was adopted in Nepal. Several other micro-credit organizations were opened later on by the central Bank as well as government of Nepal (center of microfinance, 2007).Partially considering with this fact in Soyang VDC, samuhas are undertaken for women in Soyang, Such cooperative provide the micro credit for income generating activities to the poor women in group even without any deposits as such and they could develop their skill in life time.Objective of The Study The major objectives of this study are as follows:-To find out challenges of women participation in micro-credit organization. To identify the socio-economic status of women at the study area.To examine the change in socio-economic condition of the rural women after Participating in micro-financing program.The present research design of the study is descriptive research. The purpose of the study is to describe the impact of micro credit on empowerment of rural women.The total number of microcredit groups formed till 2013 is 5 groups and the number of individuals is 550.Out of total individual 60 individuals has been chosen as sample population for the study purpose simple random sampling without replacement sample of sixty borrowers was selected.

Conclusions of study are given below.Most of the women came to know about the group from women development office as well as village development office. Women are wanted to be self dependent through group and economically they wanted to be sound. Monthly income in increase after joining group. Saving habits has been improved after joining group.Most of the borrowed reported that their ability to run any kind of business has been improved after joining group. Occupation has changes i.e. from agriculture to non agriculture activities among the borrowed. Analyzing and verifying the information obtained from the primary and secondary sources the following recommendation may be applicable to make the program more effective and target oriented. Institutional development training helps people more aware about the program and make familiar to further problems. Some client during the survey said that the need refresher training. So much training should time to time. Right leader can give right direction of development and to move a large number of groups in a way of success. It should be lead by a group of federation. It group federation is established they can bargain and can give pressure to the related agencies. So, selecting the delegate from each group should make a valid federation. After conducting the programmer higher level personnel of MFL should regularly evaluate and monitor the activities of women of women whether credit is changing their lifestyle or not. To empower as well as reducing poverty MFI should not be limited within more facilitated area of Terai and valley but in other hill and mountain areas identifying the poverty areas where informed credit sectors are dominating. There is fixed amount of credit ceiling, where is insufficient compare to the willingness of members to start new enterprises. So looking at the interest and feasibility the ceiling should be increased.