Role Of micro finance in poverty reduction through women empowerment: A case study of micro finance program In Basdole VDC of Kavre District, Nepal

Abstract

Micro-finance refers to the extension of small amount of credit and saving services to unemployed or low income individuals or groups who do not have access to formal financial institutions to help them engage in sustainable income generating activities. The focus of the study is SwarojgarLaghubittaBikas Bank Ltd. (SLBB) with head office at Banepa-10 Kavrepalanchowk. It is a woman participating micro-finance institutions with the main goal of generation of income and employment opportunities for women. This study is an evaluation of the impact of SLBB microfinance on women in Kavre district. It has focused primarily on women and analyzed the role of SLBB on the empowerment of women. The objective of the study is to examine the impact of SLBB on living standard and self-employment opportunities in Kavre district. It also focuses on how access to SLBB helps to improve status of women , influence the member to save, helps in creation or expansion of business, how it helps to distribute loan and its repayment policy , generate income and empower women. For the purpose of the study, a survey was conducted among the people who are the member of SLBB. It was undertaken in the rural area of Kavre district and the area covered was Basdole. The sample size was 45. The overall study shows that the women involvement in SLBB micro-finance program has made positive impact on their living standard and consumption pattern. It has improved the income level of the poor women by providing self-employment opportunities through micro-credit facilities. Loan is disbursed in different sectors such as agriculture, retail business and cattle farming which has helped in the generation of employment and was economically profitable. Primary data is the first hand data collection method, primary data were collected from the sample beneficiaries of SLBB through different data collection technique. It was collected from the actual field using questionnaire, face to face interview and observation. The overall progress of the SLBB was being assessed with the help of secondary data which are collected from the annual reports, journals of microfinance, published and unpublished books, internet, various research studies and articles This gave the conclusions a validity which would not have been obtained through the use of secondary data. The respondents basically use loans for the improvement of their agricultural and cattle farming represented by 37.78% and 26.67% respectively for their livelihood.Out of 45 respondents, 40 responded that SLBB had helped them very much to raise their standard of living whereas 5 responded that it helped to some extent. Thus, out of 100%, approximately 90% had responded positively. The microfinance program has positive impact on respondents as traditional agriculture has declined by 28.8%. It is due to the modern technology and methods of farming, members have left their previous traditional occupation and started business which is economically profitable.SLBB microfinance has helped women to start or expand existing (86.67%) business. Similarly, the study shows that enrollment of children into the school was increased by 63%.Accessibility to the health services to the respondents was satisfactory to 46.66 percent respondents getting moderate health services and 44.44 percent respondents getting adequately. Hence, SLBB microfinance has created jobs and thereby contributed to reduction in unemployment. Moreover, women have started economic activities which are economically profitable and according to their skills and interest. The savings of the sample respondents has also increased. The provision of small loans provided by SLBB helped women to start or expand their own business which has improved their earning capacity, living standard and socio-economic status. Hence, involvement in SLBB microfinance

program has lead to an increase in savings, income, investment and living standard. Thus, this study has shown the positive changes in all the sectors considered.