Contribution of Village Saving and Loan Program (A Study Among Selected Village Saving and Loan Groups in Syangja, Nepal)
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Abstract
This study 'Contribution of Village Savings and Loan Program' is conducted among
selected VSLGs in Phaparthum Village Development Committee ward no one and two
of Syangja districts, Nepal. The general objective of this study is to assess the impact
of village savings and loan groups on livelihood of the rural poor, where ASK-NEPAL
is implementing Village Saving and Loan Program. Similarly, the specific objectives
of the study are to observe managerial practices of village saving and loan group, to
find out the contribution of village savings and loan program to the rural poor and
examine the relationship between access of livelihood assets and socio-economic
category.
During the study, primary and secondary data are collected by using both
quantitative and qualitative methods of data collection. Qualitative methods applied
several Participatory Rural Appraisal (PRA) tools. While quantitative information is
collected using questionnaires. The unit of analysis is livelihood of rural poor. The
total sample size is 84 households (100%). The data of the study are analyzed using
both quantitative and descriptive methods.
After summarized the study, it is found that the managerial practice is good for the
sustainability of the VSLG. The entire target VSLG prepared the policy of fines and
disciplinary action for late arrival in the meeting so all members were regular
participated. The VSLG have pro-poor policy and gave the priority to take the loan
for IGAs for poor, vulnerable, marginalized members. The interest rate within village
saving and loan groups is 12% per annum and benefit was shared among the saving
members only. The project created base to improve the livelihoods of poor rural
population groups in selected areas of Syangja mainly through village saving and
loan program activities. The village saving and loan group model is highly relevant
in rural area where access to finance to the poor and disadvantaged groups is a
challenge. It is found that all members found happy and changing their livelihood in
better way.
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The awareness level is increasing day by day because almost households are able to
get the basic rights. Literacy level is high; all the children attend in schools that are
in school going age. Some of the villagers are not taking the birth registration and
citizenship so which shows to increase about the importance of birth registration and
citizenship. It has to increase the household and personal sanitation status because it
is on the process of improvement. Household hygiene status is very good because the
program is giving the awareness about the environment sanitation as well as social
responsibility. Most of the households are using the vegetables from their own kitchen
garden. So, the condition of livelihood is improving.
Women and poor's awareness level also have increased. But their participation in
different committees/organizations has not improved. Some elite men are still
influencing and dominating women and poor's in various factors; for example the
groups are still leading by the elite men. Without participation with any positions in
different organizations it is difficult to make improvements regarding their livelihood,
empowerment and gender equity. The study also shows that 33.83% women are
capable for their own decision in different fields. 31.80% men decide without asking
the other members and 34.52% of households are jointly made the decision within
family which is indicated the increment of women in decision making in different
sectors.
Land ownership of women is increasing. Land also purchased by jointly (Women and
man). All households have drinking water facility, toilet and animal shed. The study
also found most of the households sell the livestock assets to fulfill the immediate cash
requirement. The study area located in rural areas so; the villagers are always in risk
from natural disasters such as floods, landslides, affected by wildlife etc. To minimize
and mitigate the risks, the current vulnerability status of houses and land should be
taken into consideration. This type of assessment helps the groups to create an
emergency fund for immediate responses within members.
Agriculture sector and foreign employment in target area is the major source for
employment and economic activities. Therefore, occupations are ranked in
farming/agriculture, animal husbandry, wages/labor, job, business and others. The
study shows the households apply two or more sources of income for livelihood.
Average gross income of per household is NRs. 207228.57 was found. Food scarcity
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is one of the most problems facing by people in target area. Natural disaster such as
landslides and affected by wildlife are major risk factors for them. Nearly 83%
households are found the below 12 month foods sufficient. The deficit food is
managed by impact groups from wages, borrow, business, employment and other
income sources. The group members have taken loan from different sources to
maintain the over expenditure. The saving is the most critical part of the livelihoods
assessment and the program is encouraging to people for regular saving. The persons
who took loan from different institutions are investing in income generating activities.
It shows that the people are fully aware for the improvement of their living stander.
All household members are involved in community forest which is very much
important to utilize the forest resources for livelihood. 100% households have
accessed the resources from the community forest. 71.43% households reported that
the community forest user committee has been listen and addressed their voice for the
improvement of the livelihood.
The program Village Savings and Loan found which support to fulfill the small local
pools of capital to satisfy households' cash-management needs of rural poor. It
provides sustainable and profitable savings as well as the support to the villager for
sustainable livelihood. Contribution of Village Savings and Loan Program to Uplift
the Livelihoods of Rural Poor: A Case Study Among Selected VSLGs in Syangja
districts is measured by the different statements or queries related to livelihood. It is
deduced that there is the positive response of participants towards livelihood in all
indicators. This also proves that the livelihood of rural poor is significantly improved
and the impact of village saving and loan program also in positive trend.