Micro Finance and Changing Status of Women ( A Study of Madi Municipality-1, Basantapur, Chitwan)

Abstract

The present study Micro Finance and Changing Status of Women (A Study of Madi Municipality-1, Basantapur, Chitwan) is based on primary information collected from field survey. The general objective of this study is to explore the role of micro finance program for changing status of women in Madi Municipality .1 Basantpur . The specific objectives of the study are as follows: To study the current socio-economic status of the women involved in the micro-finance program. To examine the changes in the status of the women by the micro-finance program. This study is based on the micro study of microfinance program. It seeks to analyze the effectiveness and sustainability of microfinance program in the above mentioned study area. A descriptive method is adopted to analyze and interpret the quantitative and qualitative data collected from the concerned field. Loan, investment and repayment process and situation of microfinance program are covered in this study. Primary and secondary data are used to attain the objectives of this study. Primary as well as secondary data are used in the study. Primary data are collected from the study area using structured questionnaire. Besides this, primary data were also collected from the knowledgeable people using checklists. Population for this study is the member of the concerned microfinance programs conducted in Madi Municipality of Chitwan district of Nepal. There are 6 groups with 145 members in the Basantpur and each group consists of 15 to 25 members. The sample size of this study is 37. This figure represents 30% of the total population. Information about population and sample size is given in the following table. Microfinance program serves the deprived populace of the country at their doorstep with the aim of improving their socio-economic condition. As microfinance has been considered as an effective and efficient mechanism to reduce poverty all over the world, however, Nepalese microfinance institutions are not being able to reach the poorest of the poor due to the inability to proper identification of the poor and lack of commitment and clear vision of their action. Despite the financial sector, the microfinance institutions need to adopt strategic approaches in order to address these managerial challenges as a supportive policy with one door controlling and monitoring mechanism, efforts to link formal and informal financial sectors involved in microfinance programs and flexibility in financial management regulation. Additionally, financial institutions themselves need to develop business planning practice and efficient management of human resources within the institutions. In connection to financial intermediation, it can be concluded that, although the phenomenon is new in Nepal, it is the right time to fulfill the financial needs of the poor. Reaching to the poor through financial intermediaries is found to be cost effective and targeted group can be reached efficiently.