Role of Grameen Bikas Laghubitta Bittiya Sastha Limited for Uplifting Income of Rural People in Nepal (A Case Study of Belbari Municipality, Morang)

Abstract

The study entitled Role of Grameen Bikas Laghubitta Bittiya Sanstha Limited for Uplifting Income of Rural People in Nepal: A Case Study of Belbari Municipality of Morang District has been conducted for the purpose to meet the academic requirement for MA thesis. Study tries to answer some important questions about income generation and microfinance in the periphery of rural people. More specifically and precisely, this study has picked issue of poverty reduction by microfinance through Grameen Bikas Bank (GBLBSL). The study is trying to answer impact of Grameen Bikas Program to rural people of Belbari Municipality of Morang District which is in province-1. Hundreds members have been selected as sampled and collected required data and information for the study. After analyzing those data and information, it is found that Grameen Bikas Program of GBLBSL has positive impact to most of those members. They have experienced some economic as well as social improvements after intervention of the Grameen Bikas Program. However, there are some financial literacy problems among low income group. GBLBSL needs to extend its financial coverage along with financial literacy program. Occupational diversification of the women is one of the strong impacts of GBLBSL. Before bank intervention 24 percent engaged in "housekeeping" and 44 percent were engaged in 'agriculture' sectors. But now, most borrowers have changed their traditional occupations housekeeping and agriculture sectors and have adopted new business for higher level of income. One of the important achievements of organized GBLBSL is that it has successfully helped out rural women and increase co-operative behavior among them. The main features of the GBLBSL are that it provides loan without taking any collateral and on the group guarantee basis through its door to door visit service or field activities work. In totally, positive role of the GBLBSL in changing socio-economic condition of rural poor women have been found from the field observation. It is also observed that some of the borrowers could not be able to take advantage by GBB program due to their bad nature.