REPORTONROLE OF MICRO FINANCEINUPLIFTING WOMEN STATUSBy: Rekha BishtMB11A23
MICROFINANCEMicrofinance is emerging as a powerful tool, reaching out topoor household who have yet to be reached by formalfinance sector.Microfinance is an effective intervention for povertyalleviation in early seventies for developing countries. Thegreat visionary and Nobel Prize winner Prof. Md. Yunus hasconceptualized this intervention to eradicate poverty.
CONTI……" Microfinance refers tosmall scale financial services such as micro‐saving, microcredit and micro‐insurance to the people who operate microenterprises which generate income and allowing them tomeet financial needs and emergency. These short term loansare enough to start or expand business,weavingbaskets, raising chicken or buying wholesale product to sell inthe market.
CONTI….During the year 2007-2008, the idea has been presentedunder two models of microfinance involving credit linkagewith bank.1) SHG-BANK LINKAGE MODEL2) MFI BANK LINKAGE MODEL
MICROFINANCE AND WOMENENTREPRENEURSHIPThe microfinance industry has given more attention to thewomens need for saving services and other finance services.Studies from all part of world have found that increasing selfesteem of women is among good consequence ofmicrofinance. This has not only increased their self‐esteem ofconfidence but also their status at home. Indian womenclients of Rashtriya Seva Samiti (RASS) found that theircontribution helped them in earning greater respect fromfamily.
CHALLENGES TO WOMEN• Reduction in the womens household decisions.• More workload may lead to poor health, exhaustion andoverwork.• The problem of male influence is one of the most difficultchallenge related working with women as microfinance clients.• It has been observed that after disbursement of loan womendoes not know how to use it.
FINDINGSWhile going through the details of microfinance in the worldespecially for poor women I found following facts:• Although SHG’s and MFI’s have provided helping hands but stillthey are not able to help themselves• Womens are not able to manage the funds or the simply think theycant do it hence they transfer the funds to their dad/husband orany other male relative.• Due to above reason the motive of uplifting women’s status is notbeing solved.• In many areas even if the women’s are interested in improvingthemselves they are not able to do so because at many placeswomens are getting less loan as compared to male gender at thesame position.
CONCLUSIONIt is concluded that microfinance has proved it to successfulin empowerment of women reducing dependency onmoney lenders, easy access to credit to their members andsavings and moderate economic benefits. There has beentremendous growth in the progress of SHG-Bank-linkage.NABARDs SHG-Bank- linkage programme has been a majoreffort to connect thousands of SHGs across the country withformal banking system. Till the recent past, microfinanceprogrammes have confined themselves toDistribution of loan to women but receipt of a loan andutilization of loan is guarantee of improving economicstatus of women.