Micro finance in socio economic status of women ; a case study of Nirdhan Utthan Bank Limited Kelena VDC, Doti district Nepal

Abstract

ABSTRACT

Micro Finance is source of financial services for focused member which includes small and regular saving, loan to invest on small enterprise, remittance, insurance and idea about financial planning on the basis of household cash flow.Micro Finance is not just bank for poor which is social and economic empowerment mission for whole development. Existing in between two financially rising country India and China Nepal has much low percapita income (25.2 percent are under poverty earning lower than $ 2 per day according to Census 2011) and high illiteracy (more than 35 percent in total population and 57.4 percent women to ward women population). Financial viability and literacy seems inter related. When we go for reason of poverty on Nepal following points playing vital role and becoming challenge to come out from vicious circle of poverty: 1. Lack of access on education as well as equality over education. 2. Unfair distribution of property. 3. Geographical condition of Nepal. 4. Caste and class discrimination and lack of consciences. Poverty measurement tool is multidimensional because we can gauge poverty from the eye of income level, living standard, social involvement and human development also.

Rural women who are even back on opportunity of empowerment, education and financial access because of this their involvement is limited on household work and reproduction. Nepalese tradition and social custom is one of deep rooted reason on the prevailing condition of women. Most of women survive on dependency during their whole life.Depend on parent before marriage, depend on husband after marriage and depend on son on old age. Despite the condition of Nepalese women we could find some slow change on poverty while reading reports such as Multidimensional Poverty Index (MPI) prepared by Oxford university data shows decreased poverty on 2011 in comparison to 2006. After restoration of multiparty system on Nepal (1990) different donor and government started microfinance program to empower the deprived group (women, dalit and pro poor) from rural and urban area. On 20th century this is accepted micro finance is contributing tool to empower women because micro finance with women has been worldwide practice. Nepal Rastra Bank has supported to groom micro finance practice making compulsory for commercial and development banks to invest on percentage basis of lending. To serve micro finance service Nirdhan born on 1991 as a NGO and started banking operation from 1993 which receive LBL from NRB on 1994. Banks dense on Terai with their financial services opening branches and mountain area remain neglected long where a few cooperatives, CBOs and self-help groups providing saving and credit services from a bit long before. Silgadhi is mountain market place of far west Nepal where Nirdhan operated branch on 2067/5/20 BS.The coverage areas of NUBL Dipayal Silgadi are Ladagada VDC, Pachanali VDC, Latamandu VDC, Kalena VDC and Dipayal Silgadi Municipality of Doti district and this thesis study related with Kalena VDC. The main objective of this study is to find socio economic status and increasing level awareness of rural women with the involvement on micro finance at Kalena VDC. Access of financial service, education problem and lack of awareness is main issue to let women back ward. This study tried to research over these fundamental elements so that study is rational. Out of 116 members from seven centers 70 members are taken sample through random sample method and information gathered through interview, record system and key informant. For data evaluation simple percentage method is applied. To find out change over income level mean and coefficient of variance is applied. Slide discussion with key informant was centered regarding evaluation of bank performance at Kalena VDC.