EMPOWERMENT OF RURAL POOR WOMEN THROUGH MICRO-FINANCE

7/30/2019 EMPOWERMENT OF RURAL POOR WOMEN THROUGH MICRO-FINANCE

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EMPOWERMENT OF RURAL POOR

WOMEN THROUGH MICRO-FINANCE


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Micro Finance

It is a basis financial services:-

Small loans, saving accounts, fund transfers and

insurance.

Alongside non-financial services such as business

training.

Micro finance assists people living in the

poverty.


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Microfinance Origins

Evolution of Microfinance 1900s

Concept of Microfinance is not new; savings and credit groups have operated forcenturies Susus in Ghana, Chit funds in India, Tandas in Mexico,Arisan in Indonesia, Cheetu in

Sri Lanka, Tontines in West Africa,Pasanaku in Bolivia

Subsidised Credit

Focused on agriculturalcredit through state-owneddevelopment financeinstitutions

Rural development bankssuffered massive erosionof capital base due tosubsidised lending rates &poor repayment discipline

ExperimentalProgrammes

Bangladesh, Braziland few other countries

Based on solidarity

group lendingprimarily women

Focus on credit forincome generationactivities

CommercialApproach

High repayment rateand cost-recoveryinterest rates

Demonstrated thatpoor were willing andable to pay interest ratesthat allowed MFIs torecover costs

Broadening ofOfferings

Micro-creditreplaced byMicrofinance to

include not onlycredit but alsosavings and otherfinancial servicessuch as insurance andmoney transfers


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4

1992 NABARD conducts pilot project

refinancing SHG programmes

1996 Encouraged by the above pilotproject, the govt. appoints the workinggroup made importantrecommendations including inclusion inthe priority sector list.

1999 A task force on NBFCs maderecommendations on microfinance

2000 The RBI announces broadguidelines to banks on microfinance inits credit & monetary policy

2002 Informal Group set up to suggestto the govt. on microfinance

2005 Khan Report (RBI) on policyoptions, development and regulatory

issues

Microfinance in IndiaMilestones

Recent Developments

Microfinance Development & EquityFund increased from Rs. 100 cr to Rs.200 cr.

ECBs upto USD 5 million allowed forMFIs (meeting certain criteria)

Exim Bank ties up with a number ofNGO/MFIs for funding/promotingcluster projects

New equity funds for microfinanceindustry Lok Capital, Bellwether, &

Aavishkar fund

RBI guidelines on MFIs as bankingcorrespondents


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Impact of Microfinance

Poor , participating in microfinanceprogrammes are able to improve theirwell-being at both individual andhousehold level

Poor households with access to financialservices not only send their children toschool but also allow them to stay inschool longer

Access to financial services and resultanttransfer of financial resources to women,over time, lead to women becoming moreconfident, assertive and better able toconfront systemic gender inequities

Impact of Microfinance


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Microfinance Vision

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Assistingpoverty

alleviation

Micro-enterpriseDevelopment Services

De-centralizedTechnology innovations

Direct CreditPrograms

Savings / Insuranceand other financial

services

Supportingentrepreneurship

Promoting micro-equityfunding models

Enabling socio-economic,

environmental,grassroots

development

Fosteringfinancial

inclusivity,empowerment

Augmentingsustainable

livelihoods

Holistic FinancialSolutions to shrinkthe Bottom of the

Pyramid


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It works in synergy with other development

interventions, like those that promote, health, education, nutrition,and offers an empowering hand up, not a hand out.

Microfinance is an intervention capable of producing a quadruple bottom line:

Relieve suffering

1. Bring dignity

2. Become sustainable

3. Inspire supporters

- Microcredit Summit Campaign report 2006

Why Microfinance?

VisionFund is the microfinance subsidiary of World Vision


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Empowerment

It is a process of change

Gain power and ability to take control over

their life.

Involves access to resource and increase in

participation in decision making and

bargaining power.

Increased controlled over benefits, resources,

self confidence, self- esteem, self- respect.


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Women Empowerment

Refers to increasing the spiritual, political,

social or economical strength

Decision-making power

Positive thinking on the ability to make thechange.

Change others perceptions by democratic

means. Increasing ones self- image and overcoming

stigma.


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Rural women empowerment through

micro-finance

Role of NABARD

Micro-Finance and Empowerment of women

Entrepreneurship development among ruralwomen through micro-credit.

Role of self help groups.


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Investing for ImpactInvest Impact

Transform

Every small loanpromises big returnswhen invested in thepassion of the

enterprising rural Poorwomen.

Work means dignity forparents, food, health careand education for their

children and jobs, futureand empowerment for ruralPoor women.

Small loans can energizecommunities to movebeyond poverty. Buttransformation comeswhen all the causes ofpoverty are tackledtogether.


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Impact of micro-finance on rural women
http://www.rajeshtimane.com/wp-content/uploads/2011/03/SHG-Effects-Outcomes.jpg


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Conclusion

Microfinance is emerging as a powerful instrument for poverty

alleviation in the new economy. In India, Microfinance scene isdominated by Self Help Group (SHGs)-Bank Linkage Programme as

a cost effective mechanism for providing financial services to the

Unreached Poor which has been successful not only in meeting

financial needs of the rural poor women but also strengthen

collective self help capacities of the poor ,leading to their

empowerment.

Economic empowerment results in womens ability to

influence or make decision, increased self confidence, better

status and role in household etc. Micro finance is necessary toovercome exploitation, create confidence for economic self

reliance and empower the rural poor women


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Any Questions???

Thank You

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EMPOWERMENT OF RURAL POOR WOMEN THROUGH MICRO-FINANCE