Economic Impact of Microfinance Services (A Case Study of Ramechhap Municipality)

Abstract

The development of the country is possible only if women folk are also developed. It has been observed that the social, economic and political status of women in rural areas remains very low. Microfinance program has been introduced for poor of the society targeting especially the women. Nepal is one of the developing countries in world. More than fifty percent population is occupied by women. Microfinance is a type of banking services that provides financial services. Microfinance is a small size financial services which covers micro savings, micro credit and micro insurance. The main aim of microfinance is to empower women. In economic variables included income, investment, consumption and assets holding. This study is based on primary data through structured questionnaire to the women in Ramechhap Municipality. Data are analyzed by using appropriate statistical tools and percentage analysis as well as describe by tables and figures. Descriptive research design has used to collect the data and to know about behavior of respondents by convenient sampling technique. This study investigates the economic improvement of women after involvement in microfinance services. The results show a positive impact on all variables. The study concludes that a microfinance institution plays a positive role on women by increasing their economic status.