Socio-economic Impact of Women Based Micro-Credit A Case Study of Nari Bikash Bachat Samuha, Lakhanpur-3 Jhapa, Nepal

Abstract

Micro-credit is non financial services which directly provide services to its members. These non financial services mostly include training such as basic literacy and arithmetic are prerequisites to run the program smoothly and for the members to be able to keep their accounts. A part form that its give trainings on micro-enterprises form a part of non financial services. Micro-credit in Nepal is provided by both formal and informal sectors. Variety of formal and informal community based savings and credit organizations operate across the country, but their outreach remains limited and capacity for growth constrained by limited member, skill and capital. About 90% of the people in developing countries lack access to financial services from institution either for credit or for saving .Among them if course, nearly all the poor can make use of micro –finance, there remains a massive gap between the low level of commercial micro-finance available form financial institutions and the extensive worldwide demand for such financial services among low income people. Micro-finance has a positive impact on reducing extreme poverty .poor use financial services to invest in micro-enterprises in addition to meet wide variety of other cash needs that they encounter the financial services savings and credit enables clients to increase their household incomes, build assets and reduce their vulnerability to rises. This study was conducted in lakhanpur VDC, Thapa. The main specific objective of this study was to assess member’s socioeconomic status and financial condition of NBBS. For this purpose, 30 respondents were randomly selected, group discussion among staffs, members as well as borrowers of NBBS individuals interview, objective types questionnaire with multi – choice alternative and close ended answers were used to collect data (Annex – I, II, III). A multi – choice alternative question had provided to facilate the respondent to and helps them for finding the best answer to their choice even, observation tools were applied to know NBBS member's socio-economic status. Nepal government does not have good kinds of micro – credit programs and policies. Nepal has a long history on saving and credit but it does not give and kinds of beneficiaries to targeted people. So government policies and programs proved only as the drop of water in ocean. But, now Nepalese people are aware and there are so many micro – credit programs which are launched by them self and so that Nepal is poor but the people are so rich. Women are very poor which the main problem is. For this education level of women should be raised. Nepal government implemented literacy programs, skill oriented training programs, income and employment generation activities, relief work, health and drinking water etc but it does not implement with the lack of paper policies. So, women based micro – credit does not give positive impact for the nation. This research study was carried out to reflect the "socio – economic impact of women based micro – credit". The research finding suggested that there are; 73.33% female and 26.66% male where the majority of respondent were Brahmin, Chhetri, Janajati, Indigenous and Dalits. The main finding of NBBS members is there is lack of knowledge of policy so, that rule and regulation are different among members and staffs. There is misuse of loans because of Evaluation, monitoring and reporting. There is no providing necessary training and in formation about amendment policy, low and regulation to the staffs and members. NBBS committee and division cooperative office meets for monitoring fund and steering only twice a year. Some major recommendations are: Education level of women should be raised, rule and regulation should be followed strictly for fraud co – operative, open policy would be better for loan provision except members, training most provide to staffs and members, budget most allocate for social welfare activities such as sanitation, awareness and education, programs should be launched to eliminate the gender discrimination and cast discrimination policies and programs related to women bared micro – credit should be implemented effectively. There is needed to carryout the further research in the same topic in the other areas for policy implication in the field of enhances the Socio – Economic impact of women bared micro – credit in household, community level and in notional level. But, at last what we can say that micro – credit have several prospects for the development of Nepal.