MIcrofinance, as its name suggets is a small form of loan providing scheme which usually can be found in rural areas these days with an obejective to help needy people, woman in particular. The loan provide them an access to appropriate financial services such as micro saving,hence fulfiling some possible desires of poor people to some extent like loans for agricultural purpose ,shops and to give a shape to some unique income- generating oppurtunities etc. Now looking back to the history of microfinance, we find Mr. Muhammad Yunus from Bangladesh (founder of Grameen Bank) as a person who introduced this useful scheme at the very begining who also happens to be the winner of Noble peace prize for the year 2006 AD.
Moving along with the time it is spending in this field, it was quite obvious for it to turn out into a huge success in world arena. As it is expanding its branches in rural areas ,it is earning trust of poor and needy people like Dalit, Ethnic, victims of any kind of natural disaster, widows etc. Microfinance is mainly community based social business and is fortunately proving out to be a non-loss business with only few rare cases as an exception. Even some NGOs, INGOs have started providing loans to the clients which seems to have some good impacts in the lives of people in terms of profits or helps . Microfinance does faces challengs like that of other sectors example high risks, overdues, dropout etc.
The microfinance sectors has an ability to extend its outreach impact on helpless woman, poor citizens, dalits, indigineous, victim of natural disaster and it does it by providing financial and skill developing, health, awarness program etc. Nowadys, in the international field, microfinance is considered as one of the safe and healthy business. It is community based and does include some groups and provide them required knowledge or adequate informations regarding microfinance and its features like loans, saving, insurance, microjobs etc.
The microfinance of Arab countries ‘Grameen -Jameel’ in middle east, North Africa currently has 21 microfinance institution partners in some 11 countries like Jordan, Egypt, Lebnan, Morocco, Palestine, Syria, Turkey, Saudi Arabia, Yamen,Sudan and Tunisia to help alliviate poverty by providing financial and technical assistance to microfinance institution in the Middle East, North Africa and Turkey region. In Nepal The Nepal Rastra Bank certified at RMDC (Rural Mircro Finance Development Centre) is providing loans to different companies established in different district which is further distributed to the clients.
Sita pathak : A 60 years old Nepali woman from Gulmi , use to live a miserable life since her childhood, along with an aim to expand her own business and to have better life standard. Her life was running along with diffculties caused due to lack of proper economic resources until she turn herself towards the RMDC partners. which proved out to be an initial step towards the path which was a hint that she was going to achieve her goals. She received her first loan of 10,000 NRS and invested for buying raw materials she needed for pottery. At present, Sita produces a large varities of pots with fair amount of products (ranging from pots used for daily purpose to the pots used for storage etc.). Till date, Sita produces nearly 500 pottery items per week, each costing nearly 1000 NRS. She already repaid her previous loan and has applied for yet another loans of 50,000 NRS for proper investements to increase her production display merchandise etc, “Thanks to the financing scheme. The loan has changed my life style” says Sita Pathak.
Now the microfinance are facing challenges like dropout, high risk, loan management, surving rural and remote households living, hilly district, lack of efficient and trained staff, security risks in the management of local branches and lack of supervising and monitoring institutions etc. It empowers women to build financial independence strengthening families communities, grow small business generating regional employment, create new oppurtunities for business development, unlocking each Micro -enterpreneur potential are the positive aspects of Micro credit business.
The borrowers and official staffs always checks the nature of the staffs whether it is worth trusting or not, it is the most important thing about the company. Branch manager, loan officers checks the field in staffs to make it sure if it is delivered to the client or not and even checks the materials.
The Microfinance is a social business so provides opportunities to advance embraces technologies to improve qualities of service and operational effectiveness to its staffs and clients.
Pavitra Sunar: 45 years old Pavitra who is a goldsmith by profession lived a miserable life during the days of her struggle as nobody was eager to help or support her on the basic of her financial condition. She use to live hand to mouth depending on her profession unless she managed to get in touch with CYC and received an amount of 10,000 NRS as a loan. After the investement she worked hard and as a result she owns a shop and living a busy life with fair amount of profits from her business which is now located in a busy area of her district.
Proffesor Mohamad Yunus said ‘When a destitute mother starts earning an income, her dreams of success invariably centre around her children. A woman’s second priority is the househeold. She wants to buy untensils, build a stronger roof or find a bed for herself and her family. A man has an entirely different set of priorities. When a destitute father earns extra income, he focuses more attentition on himself. Thus, money entering a household through a woman bring more benifit to the family as a whole.’
Ganga Panthi : An alcholic person as a husband was like a burden to Mrs. Ganga Panthi, who had a small vendor as the only source of income for the family. In addiction, voilent act of her husband, stealing habit, gambling made it even worse. She then decided to make things happen on her own and thought of expanding her business and borrowed 10,000 NRS from CYC. She invested the money on her business and as a result she is running her business with full devotion as it is paying her off. She can now feel the changes that came in the attitude of her husband, who is now not the same person at all and he is working hard and well focused to support his better half to run their familly together. Growing in confidence, Mrs. Ganga is now not hesistating to borrow a loan of 2 lakhs Nrs, as she is with all sorts of back up plans and can manage any kind of loans.
Therefore, the microfinance seems to be playing an important role in boosting the confidence, morals, skills, interests and the energy level of women in the society who wants to bring some positive changes in thier future. The uplifting of women, suffering from different forms of discrimination, exploitation, dominances, inequalities has been the main objectives and the features of today’s microfinance.