Microfinance : A step towards

Women Empowerment

Submitted To: Dr.(Mrs.) Vishakha Bansal

Submitted By: Ms. Nishu Kanwar Bhati

Microfinance

“Microfinance” is often defined as financial

services for poor and low-income clients

offered by different types of service

providers.

Microfinance is a key strategy for poverty

alleviation and women’s empowerment, and

for these government officials, donors and

NGO’s link directly with micro finance.

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Features of Microfinance

Loan are given without security

Loans to those people who live BPL (Below Poverty Line)

Every members of SHG enjoy Micro Finance

Maximum limit of loan under micro finance ₨25,000/-

The terms and conditions given to poor people are decided by NGOs

Micro Finance is different from Micro Credit-under Micro Credit, small amount of loans given to the borrower but under Micro Finance besides loans many other financial services are provided such as Savings A/c, Insurance etc

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Microfinance Institutions

Microfinance institutions are

nongovernmental organization committed to

offer microcredit and only take back small

amount of savings from their own

borrowers, not from the general

public.( Blaine S, Hind T (2006))

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Service Providers

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Importance for rural women

empowermentTheir access to credit is vital for their

effective participation in economic

development .

Given women the confidence to undertake

activities requiring a lot of capital.

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Alternatives to moneylenders and with

opportunities to build or expand household

enterprises.

Micro-credit programme works through

NGOs/ SHGs .

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Impact on rural women empowerment

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Advantages

Enables the rural poor to save.

Liberation from the clutches of

moneylenders.

Better health and education.

Loans for production purposes .

Active role in social, political and economic

issues effecting self.

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Threats

Slow saving mobilization due to systematic

problems.

Emphases on savings linked to credit.

Rural women sometimes becomes unpaid

debt collectors .

Some time women have to be ‘secret

savers’.

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Overcoming threats

Assimilation

Self Governess

Port folio diversification

Micro savings

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Government schemes

NABARD

SIDBI

In the field of agriculture .

In the field of Industry, Service and

Business (ISB).

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Conclusion

Through the mean of microfinance

women’s access to credit has

increased their self reliance and

productivity, as well as demonstrating

their potential; all which has had a

very positive multiplier effect on the

family and the local community.

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