Full Thesis

ROLE OF MICROFINANCE ON ECONOMIC EMPOWERMENT
OF WOMEN (A SOCIOLOGICAL STUDY OF WOMEN

MEMBERS OF ROYAL COOPERATIVE LTD.
DULEGAUNDA)
A Thesis Submitted to Tribhuvan University, Faculty of Humanities

and Social Sciences, Prithvi Narayan Campus, for the
Partial Fulfillment of the Requirement for the
Degree of Master of Arts in
Sociology
Submitted By:
Vidya Bhujel
Class Roll No: 509/070 'B'
Symbol No: 480391
T. U. Registration Number: 6-2-292-52-2010
Tribhuvan University
Faculty of Humanities and Social Sciences
Department of Sociology & Rural Development
Prithvi Narayan Campus, Pokhara
March 2021
i
LETTER OF RECOMMENDATION
This is certify that Mrs. Vidya Bhujel has completed this thesis entitled ROLE OF
MICROFINANCE ON ECONOMIC EMPOWERMENT OF WOEMEN (A
Sociological Study of Women Members of Royal Cooperative Limited
Dulegaunda) under my supervision and guidance. I, therefore, recommend and
forward this thesis for final Approval and acceptance by the thesis committee.
………………………
Mukunda Lamsal
Supervisor
Department of Sociology
Date:
i
LETTER OF APPROVAL
We hereby certify that the thesis entitled ROLE OF MICROFINANCE ON

ECONOMIC EMPOWERMENT OF WOEMEN (A Sociological Study of
Women Members of Royal Cooperative Limited Dulegaunda) Ms. Vidya Bhujel
to the Department of the Sociology, Prithvi Narayan Campus, Pokhara, in the partial
fulfillment of the Requirement for the Degree of Master of Arts in Sociology has been
found satisfactory in scope and quality. Therefore, we accept this thesis as a part of
the mentioned degree.
Member of the Thesis Evaluation Committee:
………………………
Mukunda Lamsal
Research Supervisor
………………………
Shankar Nath Poudel
External Examiner
……………………………
Prof. Dr. Biswo Kalyan Parajuli, Ph.D
Head of the Department
Department of Sociology and Rural Development
Date:
ii
ACKNOWLEDGEMENTS
There are several research works accomplished on women empowerment. However,

as a student of Sociology, the researcher has selected the topic- ROLE OF
MICROFINANCE ON ECONOMIC EMPOWERMENT OF WOEMEN (A
Sociological Study of Women Members of Royal Cooperative Limited Dulegaunda).
I would like to express my thanks to Prof. Dr. Biswo Kalyan Parajuli, Department
Head of Sociology & Rural Development Department. I express my sincere gratitude
to my supervisor, Mr. Mukunda Lamsal, for his guidance to complete my research
work. I also earnestly thank to External supervisor Mr. Shankar Nath Poudel for his
regular inspiration and motivation for completing the thesis. I also like to thanks
lecturer Mr. Netra Narayan Poudel for looking at the first draft of my proposal and
providing helpful suggestions. Last but not the least, I express my gratitude to my
dearest husband Bijay Sharma Khanal and family. I am equally thanks to Ramesh
Legal for his cooperation.
I would also like to thank Ms. Bidhya Tamrakar of Zerone Computer Solution,
Pokhara-3, Nadipur for her professional touch in layout of my thesis.
Vidya Bhujel
Date:
iii
TABLE OF CONTENTS
PRELIMINARY PART Page No.

Letter of recommendation i
Approval Sheet ii
Acknowledgement iii
Table of Content iv
List of Table vii
Abbreviations viii
Abstract x
CHAPTER I: INTRODUCTION 1-5
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3 Research questions 3
1.4 Objectives of the Study 3
1.5 Significance of the Study 3
1.6 Limitation of the Study 4
1.7 Organization of the Study Area 5
CHAPTER II: REVIEW OF LITERATURE 6-17

2.1 Conceptual Review 6
2.1.1 Theory of Empowerment 10
2.1.2 Gender and Development (GAD) 13
2.1.3 Marxist Feminism 14
2.2 Empirical Review 15
2.3 Conceptual Framework 16
CHAPTER III: RESEARCH METHODOLOGY 18- 21

3.1 Research Design 18
3.2 Selection of Study Area 18
3.3 Universe and Sample 19
3.4 Nature and Source of Data 19
3.4.1 Primary Data 19
iv
3.4. 2 Secondary Data 19
3.5 Data Collection Tools and Techniques 20
3.5.1 Questionnaire Schedule 20
3.5.2 Field Observation 20
3.6 Reliability and Validity of Data 20
3.7 Data Processing and Analysis 20
CHAPTER IV: SOCIO DEMOGRAPHIC PROFILE OF

RESPONDENTS 22-24
4.1 Socio Economic Status of Women 22
4.1.1 Education Level 23
4.1.2 Age Structure 23
4.1.3 Ethnic Group 23
4.1.4 Priority Sector after Improvement in Economic Condition 24
CHAPTER –V IMPACT OF MICROFINANCE IN

ECONOMIC EMPOWERMENT OF WOMEN 25- 40
5.1 Saving by Group Members in Different Saving Programs 25
5.2 Regular Saving of Women 26
5.3 Optional Saving of Women 27
5.4 Sectors of Women Saving 27
5.5 Mobilization of Collected Saving Fund 28
5.6 Interest Expenses on Savings 29
5.7 Activities of Women Members 30
5.8 Loan Disbursement in Different Programs 31
5.9 Number of Members Women Taking Loan 32
5.10 Sectors of Loan Mobilization By Members women 32
5.11 Condition of Business which is Running from Loan 33
5.12 Income from Investment 33
5. 13 Amount Invested by Women in Different Sectors 34
5.14 Monthly Income of the Women 35
5. 15 Future Program Needed to Uplift the Livelihood of Poor Women 35
5.16 Confidentiality of Participating Women 36
v
5.17 Improvement in Living Standard of Women after Joining
Microfinance 37
5.18 Sanitation Used by Members Women 37
5.19 Impact of Microfinance in Family Decision Making 38
5.20 Response as Continuing Their Business in Future 39
CHAPTER VI SUMMARY AND CONCLUSION 41-46

5.1 Summary 41
5.2 Conclusion 45
REFERENCES
Annex –I Questionnaire Schedule
Annex –II Map of the Study Area
Annex –III Photos From the Field
vi
LIST OF TABLES
4.1 Response on the Education Level of Women 22

4.2 Response on the Age Structure of Women 23
4.3 Response on the Ethnic Group of Women 24
4.4 Priority Sector Areas 24
5.1 Saving by Group Members in Different Saving Programs 25
5.2 Regular Saving of Women 26
5.3 Optional Saving of Women 27
5.4 Sectors of Women Saving 28
5.5 Mobilization of Collected Saving Fund 29
5.6 Interest Expenses on Savings 29
5.7 Loan Disbursement in Different Programs 31
5.8 Number of Members Women Taking Loan 32
5.9 Sectors of Loan Mobilization By Members women 32
5.10 Condition of Business which is Running from Loan 33
5.11 Income from Investment 34
5. 12 Amount Invested by Women in Different Sectors 34
5.13 Monthly Income of the Women 35
5. 14 Future Program Needed to Uplift the Livelihood of Poor Women 36
5.15 Confidentiality of Participating Women 36
5.16 Response on Improvement in Living Standard of Women 37
5.17 Toilet (Pakka) Used by Members Women 38
5.18 Impact of Microfinance in Family Decision Making 39
5.19 Response as Continuing Their Business in Future 39
vii
ABBREVIATIONS/ACRONYMS
ADB : Asian Development Bank.

ADB/N : Agriculture Development Bank of Nepal.
Amt. : Amount.
BS : Bikram Sambat.
CMF : Centre for Microfinance.
Cos : Companies.
FINGO : Financial Intermediaries Non-Government Organizations.
FY : Fiscal Year.
GBB : Grameen Bikas Bank.
Govt. : Government.
IBP : Intensive Banking Program.
INGO : International Non-Governmental Organization.
LGP : Local Governance Program.
MBA : Masters of Business Administration.
MBS : Master of Business Studies.
MCPW : Microcredit Project for Women.
MFDB : Microfinance Development Bank.
MFIs : Microfinance Institutions.
NBL : Nepal Bank Limited.
NGO : Non-Government Organizations.
NPC : National Planning Commission.
NRB : Nepal Rastra Bank.
PCRW : Production Credit for Rural Women.
PDDP : Participatory District Development Program.
PN : Prithivi Narayan.
RBB : Rastriya Banijya Bank.
RMDC : Rural Microfinance Development Centre.
RRDB : Regional Rural Development Banks.
Rs. : Rupees
SCC : Saving and Credit Cooperative.
SFCL : Small Farmer Cooperative Limited.
viii
SFDP : Small Farmer Development Program.
SHG : Self Help Group.
UNCDF : United Nations Capital Development Fund.
UNDP : United Nations Development Program.
VDC : Village Development Committee.
WDS : Women Development Section.
Yrs : Years.
ix
ABSTRACT
Role of Microfinance on Economic Empowerment of Women (A Sociological Study

of Women Members of Royal Cooperative Limited Dulegaunda) is representative
vision of the reality. Main thrust of the present study is to find out the monthly saving
of women respondents and to analyze the impact of micro finance to improve in
economic status of the member women.
To conduct present study analytical and descriptive approach has adopted. Analytical
approach has utilized mainly to analyze the relationship between income, investment
and other variables. Descriptive approach has used mainly for conceptualization of the
research objectives and research problem of the study. This study was based on
primary data. These primary data was both qualitative as well as quantitative.
Secondary data was used in this study was collected from different sources such as:
Various research studies, dissertation and article related to the study, Annual reports
from municipality.
All the co-operatives working with in Shuklagandaki Municipality, Tanahun was

supposed to be a universe. Women affiliated / gained membership of Royal
Cooperative has the main sources of study. The study could cover the Shuklagandaki
Municipality-2 and related women who was directly and indirectly involved in co-
operative program. The area of this study was selected by using purposive sampling.
There are 404 women shareholders who have more than 500 rupees. Out of the 404
women shareholders, 101 women was taken as sample by using simple random
sampling method. Under simple random sampling method required sample was
selected using Lottery Method which provide free from biasness Questionnaire is the
main tools of data collection.
Microfinance of Royal Cooperative, Dulegaunda is a women participating

microfinance institution so it is organizing different fund rising programs such as
saving, loan disbursement etc. within participating women. In the Microfinance
program saving and its mobilization and skill enhancement are the main instruments
to raise the economic growth and human resource development.
Saving is the basis of investment and loan disbursement. Microfinance is actively

involved in saving programs of women. Women are also interested and motivated to
x
save more with Microfinance programs. With saving they are encouraged to mobilize
that save in terms of loan. This will help to solve the financial problem of women in
society to some extent.
Loan disbursement and on time payment is an essential part of the program.

Microfinance can slowly meet the required criterion of loan repayment with
increasing trend in recovery and still the amount of outstanding remained to the
required criterion. Loan is disbursed in different sectors and Microfinance is still
focusing more on loan disbursement to poor women. Interest recovery from loan
investment is satisfactory and it is in increasing trend with certain fall. It shows that
women believe in loan and interested to invest that loan in profitable sector.
Majority of the women are involved in agriculture. The status of loan investment and
income of women is found satisfactory and they are earning slowly higher with
involvement of this program. Instead of this, business which is running by taking loan
is found as running satisfactory. Poor women are found more and some of them have
high confidentiality of standing themselves as a successful entrepreneur in future.
Majority of women believe that involvement in Microfinance program initiates to
increase their living standard.
Participants in Microfinance programs are from different ethnic groups. Some of

women prefer low interest rate, long repayment time, and more loan amount to
increase their living standard more.
The overall study shows that the program has made positive impact on the women
living standard by generating employment and increasing productivity. The most
important and effective program is to the basis to uplift the economic condition of
rural women. Most of the sampled women are under farmer's category and the major
source of income of women is agriculture.
xi
CHAPTER I
INTRODUCTION
1.1 Background of the Study
Today, poverty is the world‘s main problem. Every country faces this problem. Since
poverty is the main barriers for today‘s world without solve it no one cannot get really
success in every part of country‘s development. Nepal is least developing country and
faces this problem (Acharya, 2019). Around 25.2% of people are under poverty.
Nepalese govt. and other sectors of Nepal are trying to solve this problem from
various methods. Microfinance is such a source which help to solve this problem,
with the help of microfinance, Nepal get success in poverty alleviation. This
microfinance is an effective tool to increase the life standard of women and give
socio-eco status of people in society (Thapa, 2018).
Microfinance involves the provision of financial services such as savings, loans and
insurance to poor people living in both urban and rural settings who are unable to
obtain such services from the formal financial sector (Poudel & Pokharel, 2017).
Microfinance creates access to productive capital for the poor, which together with
human capital, addressed through education and training, and social capital, achieved
through local organization building, enables people to move out of poverty. By
providing material capital to a poor person, their sense of dignity is strengthened and
this can help to empower the person to participate in the economy and society.
The educated as well as energetic women do not want to limit their lives in the four
walls of the house. They demand equal respect from their partners. However,
Shuklagandaki Municipality's women have to go a long way to achieve equal rights
and position because traditions are deep rooted in Nepalese society where the
sociological set up has been a male dominated one (Acharya, 2019). Women are
considered as weaker sex and always made to depend on men folk in their family and
outside, throughout their life. The Nepalese culture made them only subordinates and
executors of the decisions made by other male members, in the basic family structure.
1
While at least half the brainpower on earth belongs to women, women remain perhaps
the world‗s most underutilized resource. Despite all the social hurdles, Nepal is
brimming with the success stories of women. They stand tall from the rest of the
crowd and are applauded for their achievements in their respective field.
Women empowerment may be defined as the women or a group of women, who

initiate, organize and operate a business enterprise. The Government of Nepal has
defined women entrepreneurs as an enterprise owned and controlled by women
having a minimum financial interest employment generated in the enterprise to
women (Thapa, 2018). Women entrepreneurs engaged in business due to push and
pull factors which encourage women to have an independent occupation and stands on
their on legs. A sense towards independent decision-making on their life and career is
the motivational factor behind this urge. Saddled with household chores and domestic
responsibilities women want to get independence. Under the influence of these factors
the women entrepreneurs choose a profession as a challenge and as an urge to do
some thing new. Such a situation is described as pull factors.
Empowerment is the degree of autonomy and self-determination in people and in

communities (Tripathi, 2010). This enables them to represent their interests in a
responsible and self-determined way, acting on their own authority. It ranges from
self-strength to efficiency building of women. However, empowerment of women
now can be categorized into five main parts – social, educational, economic, political
and psychological.
1.2 Statement of the Problem
The foregoing provides the context for the statement of the problem of the study as a
study of role of microfinance on women entrepreneurship development. It is a type of
study that is long overdue. To the best knowledge of the present researcher no one
study has done regarding to study the source of income of women respondents, to
analyze the impact of micro finance to improve in economic status of the member
women and to explore suggestions to improve the economic condition of poorest
women.
Women of Nepal are poorest then men because they lack access to health, education
and economic resources. Most of the women of Nepal are involved in agriculture but
2
not recognized as farmer due to triple burden of work. Majority of women in Nepal
are suffering from hard work and have difficult social and economic condition. The
most unprivileged class like women is to be especially targeted to effectively achieve
overall poverty reduction in the country (Poudel & Pokharel, 2017).
Different type of programs is lunching in women development in Nepal. Such as

priority sector credit program (PSCP), Small Farmer Development Program (SFDP),
Integrated Rural Development Program (IRDP), PCRW, Participatory District
Development Program (PDDP) which in fact are intended to uplift the rural poor,
especially women. Govt. also conducted micro credit project for women (MCPW) in
twelve districts and five urban areas (Tripathi, 2010).
Although Tanahun is one of educational district of Nepal, women of this district are
still involved within household activities. They involve in agricultural activities. The
ownership right over the family properties rests with males not the females. Some
common problems related to women such as not owning land and low level of
education, limited scope to generate income and low social status are interconnected
and circular in nature. They are less conscious to save money and financial
mobilization. It is difficult for women to get high amount of loan without collateral
and with less collateral. It is difficult for them to invest in business activities.
1.3 Research Questions
On the basis of above statement of the problem following research questions are
posed.
3 What is the monthly saving of women respondents?
4 What is the impact of micro finance to improve in economic status of the
member women?
1.4 Objectives of the Study
The general objective of the study is to find out the "Role of Microfinance on
Economic Empowerment of Women". The specific objectives are as follows:
1. To find out the monthly saving of women respondents.
2. To analyze the impact of micro finance to improve in economic status of
the member women.
3
1.5 Significance of the Study
Through the help of this research study, it can be helpful to the microfinance, saving
groups created by women to understand what could be done to empower women
effectively. Similarly, it can be helpful to reveal the condition of the society. The
study could help to analyze the women participation in financial decision making. The
study can helps to determine the role of microfinance in society, living standard of the
people, their expenditure behaviors‘.
Microfinance allow women to take a greater role in household decision making, to

have greater access to financial and economic resources, to have greater social
networks and more bargaining power vis-à-vis their husbands; and to have greater
freedom of mobility ( Bacon, 2010) To date, Nepal about three decades of experience
in Micro-Finance, which has been exclusively recognized as a poverty-reduction
program focused towards raising the Income level and social standard of the people
living in poverty, particularly women. This research is to examine the impact of the
microfinance on livelihood improvement of the people living in Shuklagandaki
Municipality-2, Tanahun through employee opportunity, income level, consumption
expenditure, capital expenditure and social information.
1.6 Limitation of the Study

While this study is sheds light on various aspects of the micro finance. Furthermore,
this study attempts to contribute to a fuller picture of the micro-finance sector and its
impact. Followings are major limitation of the study
 This study is only concentrated to the small area. So it does not cover the real
scenario of Nepal.
 The small part of the data in this study was secondary; therefore the
comprehensibility and accuracy of the figure and information published in
this document may be bias.
 Research was conducted in very short period of time.
 The sample size of this study is too small which may not represent the whole
population.
4
1.7 Organization of the Study
The thesis has organized into six chapters.
Chapter I Introduction
This chapter contains an introduction part of the study which includes: background of
the study, statement of the problem, objectives of the study, significant of the study
and limitations of the study.
Chapter II Literature Review
Chapter two has devoted to review of the literature
Chapter III Research Methodology
It deals with research methodology including research design and methods of

analysis.
Chapter IV Socio- demographic Profile of Respondents
This chapter has included data analysis and presentation about socio- demographic
Profile of Respondents.
Chapter V Impact of Microfinance in Economic Empowerment of Women
This chapter has included data analysis and presentation about impact of microfinance
in economic empowerment of women with findings.
Chapter VI Summary and Conclusion
Chapter six has included summary and conclusion of the study.
5
CHAPTER II
REVIEW OF LITERATURE
2.1 Conceptual Review
Microfinance has proved itself a powerful tool for economic development of low-
income women and man. It is an effective approach for alleviating poverty through
access to the poor for operating their small enterprises. The term microfinance refers
to the provision of financial services to low-income clients, including the self-
employed, financial services generally including savings and credit; however, some
microfinance organizations also provide insurance and payment services (Thapa,
2018).
Microfinance means providing very poor families with very small loans (micro credit)
to help them engage in productive activities or grow their tiny business. Over the
time, microfinance has come to include a broader range of services (credit, savings,
insurance etc.) as we have come to realize that the poor and the very poor who lack
access to traditional formal financial institutions require a variety of financial
products (Acharya, 2019).
Nepal government designed a poverty alleviation program called small farmer

development program in 1975. The program was implemented through Agricultural
Development Bank. This program is now considered a successful program in Nepal
for poverty alleviation to some extent. Government recognized micro finance as a tool
for poverty alleviation and thus lunched it in the Sixth Plan (1980/81-1984/85).
Various programs to ensure poor, particularly women and disadvantaged and
marginalized people was designed and implemented during that period. This program
gained momentum after the restoration of democracy in 1997 with the establishment
and promotion of Grameen Bikash Bank and other micro finance institutions like
production credit for rural women, micro credit project for rural women, rural self
reliance fund, rural development bank, etc. (Yasha,2019).
6
Micro credit programs in Nepal have different modalities. Some are community based
such as saving and credit cooperatives. Some are sector based such as 'priority sector'
program which includes agriculture, cottage and small industries and services, and
implemented through commercial banks. Though the history of micro credit started
since 1950s, its importance has increased when regional rural development banks
were established in 1992 by Nepal government and Nepal Rastra Bank as
reapplication of Grameen Bank of Bangladesh, focusing on extremely poor people.
The main objectives of RRDB is to empower rural people economically by providing
them economic opportunities which in turn empowers them socially, economically,
politically and psychologically.
Figure 2.1: Micro Finance Sectors in Nepal
Government Initiated Model Semi formal Sector
Government German Bikas

Mandated Model Bank NGO/ SCC Micro finance NGO / SCC
Model Development model
(External Bank (Internal Fund)
Fund)
Indigenous SCOS /
Government INGO Program NGOs SCCS
program (RSRF, (Plan, SCF,
MCPW, SFCL) CFCI)
Nobel peace prize winner of 2006, Mohammad Yunus of Bangladesh, the brain child
of Grameen Bank, aptly regards poverty as "The denial of human right. A poor person
has no right at all, no matter what one puts into the book" (Yunus, 1987). Thus
poverty is multidimensional in nature. It is the presence of hunger, malnutrition,
illiteracy or insufficient education, starvation, frequent outbreak of communicable
disease, remarkable poor housing, bare clothing, landlessness and so forth. The
dynamics of poverty inequality and nutritional deficiency are related to each other
through a complex chain of interactions. This phenomenon reinforces the other, and
they are influenced at the same time by a number of other socio-economic parameters
(Sharma, 2011).
7
―Micro-credit‖ remained as important tool to focus the rural poverty. The poverty
situation in Nepal is alarming and to reduce this situation to a reasonable level is also
a major concern of the govt. plans and programs (Senayake, 2002). The current 10th
plan (2002-2007) has also incorporated micro credit as a major financial tool to
overcome its single objective; i.e. poverty reduction. To attain the objective, the 10 th
plan has set out a number of policies and strategies along with various credit
programs. For this, the plan has set a target of Rs. 101 billion rural credits to be
disbursed during the plan-period of which the MFIs alone will disburse 50 percent‖.
Finance can be regard as effective tool in spreading economic opportunity and

fighting poverty giving poor people the freedom to earn and fulfilling livelihood. Like
all economic agents, low-income households are micro enterprise can benefit from
credit, savings and insurance services. For this microfinance has evolved as an
economic development approach intended to benefit low-income women and man.
Mostly women of rural areas are illiterate and are not access to sufficient financial
benefits. The access to financial services, such as savings, remittance service, and
insurance can help poor women from the fear of future long term factors such as
inadequate consumption, education, health, and other indicators of human welfare.
The overwhelming majority of people in Nepal are concentrated in rural areas where
the incidence of poverty is 34.6 percent as compared with 9.6 percent in the urban
areas. So the government of Nepal since its early national plans gave emphasis to
reduce poverty through improving financial access to rural people (Bashyal, 2008:
p.1).
Microfinance has proved itself a powerful tool for economic development of low-
income women and man. It is an effective approach for alleviating poverty through
access to the poor for operating their small enterprises (Senayake, 2002). The term
microfinance refers to the provision of financial services to low-income clients,
including the self-employed, financial services generally including savings and credit;
however, some microfinance organizations also provide insurance and payment
services.
Microfinance means providing very poor families with very small loans (micro credit)
to help them engage in productive activities or grow their tiny business. Over the
time, microfinance has come to include a broader range of services (credit, savings,
8
insurance etc.) as we have come to realize that the poor and the very poor who lack
access to traditional formal financial institutions require a variety of financial
products (Yasha, 2019).
Micro finance activities usually involve:

- Small loans, typically for working capital.
- Informal appraisal of borrowers and investments.
- Collateral substitutes, such as group guarantees or compulsory saving.
- Access to repeat and larger loans, based on repayment performance.
- Streamlined loan disbursement and monitoring.
- Secure saving products.
Since microfinance is targeted to poor people of rural areas, it assists the poor in many
ways. Such as; providing poor people to invest in assets, organizing and facilitating
difficult activities to earn their livelihood, protecting against income shocks incase of
emergency needs and smooth consumption, improving quality of life by building
social capital.
Some MFIs provide enterprise development services, such as skills training and
marketing, and social services, such as literacy training and health care; these are not
generally included in the definition of microfinance. MFIs can be non-governmental
organizations (NGOs), saving and loan cooperatives, credit unions, non-banks
financial institutions (Sharma, 2011). Microfinance clients are self-employed as well
as street vendors, small farmers, service providers (hairdressers, rickshaw drivers) and
artisans and small producer, such as blacksmiths and seamstresses. ―Micro-credit‖
remained as important tool to focus the rural poverty. The poverty situation in Nepal
is alarming and to reduce this situation to a reasonable level is also a major concern of
the govt. plans and programs. The current 10th plan (2002-2007) has also incorporated
micro credit as a major financial tool to overcome its single objective; i.e. poverty
reduction. To attain the objective, the 10th plan has set out a number of policies and
strategies along with various credit programs. For this, the plan has set a target of Rs.
101 billion rural credits to be disbursed during the plan-period of which the MFIs
alone will disburse 50 percent‖.
9
2.1.1 Theory of Empowerment
The word empowerment emerged in the 1980s from critiques of the existing gender
models for development (Batliwala, 2007). The models were critiqued for only having
economy as an incentive for including women, and empowerment emerged as a
transformatory idea challenging patriarchy and discrimination of gender, race and
ethnicity (Batliwala, 2007). This way, empowerment aims for changing women‘s
position in developing countries.
Although empowerment emerged as a socio-political process, the word‘s meaning

quickly became narrowed, apolitical and a pathway for neo-liberal ideas (Batliwala,
2007). What was really a process from within and an alternative to short-term, goal
oriented projects largely became quantified. The number of meetings held or the
number of women elected to leadership positions became a measure of success rather
than acknowledging that empowerment is a long-term process of thinking, learning
and acting. Batliwala (2007) and other analysts (Smyth, 2007) argue that the once
powerful word lost its power as it entered policies and programs.
Because the definition of empowerment is not protected, its use has resulted in misuse
and many ambiguous definitions: it is used as a verb, a process, a noun, an approach
and an activity. Furthermore, who does empowerment, and can it be done to others?
With so many different definitions, empowerment also has the potential for people to
make it their own or choose their own definition. For this thesis, I have chosen
Kabeer‘s (1999) definition of and framework for empowerment as it is developed in
the context of rural women in developing countries. Kabeer (1999) defines
empowerment as ―the process by which those who have been denied the ability to
make strategic life choices acquire such an ability‖ (Kabeer, 1999, p. 435). Kabeer
divides the ability to exercise choice into three dimensions of choice: resources,
agency and achievements. Resources does not only include economic and material,
but also social and human. Kabeer (1999) describes resources as the pre-conditions
for enhancing choice making. Someone‘s resources can be seen as a measure of their
potential, but does not necessarily imply agency and achievements.
Where resources are the toolbox that restricts or makes things possible, agency is ―the
ability to define one‘s goals and act upon them‖ (Kabeer, 1999, p.438). To have
10
agency can be seen as having the ―power to‖; it is someone‘s process of implementing
strategic action. Agency can depend on self-esteem, awareness and education.
Indicators of agency can be women‘s mobility in public, group participation, decision
influence in household or male violence (Kabeer, 1999).
It is important to note that resources and agency alone are not a measure of
empowerment, rather a measure of potential choice (Kabeer, 1999). This way, agency
and resources together represent the capability and potential people have for living the
lives they want (Kabeer, 1999), whereas achievements are the actual outcomes of their
efforts. Measures of these outcomes can be frequency of domestic violence, control of
income or education level (Kabeer, 1999). It is important to note, however, that not all
outcomes are positive or turn out as planned. Furthermore, the three dimensions of
empowerment are not meant to be seen in isolation, rather they are indivisible and
must be seen with reference to each other (Kabeer, 1999).
Women‘s empowerment see the process of empowerment in the interplay of agency,

structure and relations. Structure and relations can be seen as parts of Kabeer‘s
preconditions that she calls resources and agency. Structure as ―the environment that
surrounds her and conditions her choices‖. Although Kabeer (1999) does not devote
much space to discuss structure, she writes that ―[s]tructures shape individual
resources, agency and achievements‖ (Kabeer, 1999, p. 461). Structure is therefore
understood as an underlying condition for empowerment also in her framework.
Indicators of structural restrictions for women can be a lack of access to information
and services, little or no political representation or gender discriminatory laws. The
machismo culture in Nicaragua is another example of structures that largely hinder a
woman‘s empowerment process. Moser (1989) argues that empowerment is a long-
term strategy to challenge and break down structures that hold up gender inequality
for women to gain new positions in society.
Several authors have pointed out how cooperatives can contribute to the
empowerment process (Bacon, 2010). As this thesis looks at empowerment through
cooperatives definition is a helpful addition to Kabeer‘s to understand empowerment
and power dynamics for a whole group. She defines it as ―the process by which
people, organizations, or groups who are powerless (a) become aware of the power
dynamics at work in their life context (b) develop the skills and capacity for gaining
11
some reasonable control over their lives, (c) exercise this control without infringing
up on the rights of others, and (d) support the empowerment of others in their
community‖.
"Empowerment" is a word widely used but seldom defined long before the word
became popular, women were speaking about gaining control over their lives, and
participating in the decisions that affect them in home, community, in government and
international development policies. The word ‗Empowerment‘ captures this sense of
gaining control over their lives, participating and decision making. Recently, the word
has entered the vocabulary of development particularly in the case of women
development (Acharya, 1997).
Empowerment is a comprehensive process, and is not, therefore, something that can

be given to people. The process of empowerment is both individual and collective
since it is through involvement in groups that people most often begin to develop the
awareness and the ability to organize to take action and bring about change.
At a workshop of pacific women entitled "Women Development and Empowerment"

Vanessa Griffin (1987) spoke about what empowerment means to her "To me the
word simply means adding to women's power -To me power means: Having control
or gaining further control Having a say and being listened to Being able to define and
create from a women's perspective; Being able to influence social choices and
decisions affecting the whole society (not just areas of society accepted as women's
place; Being recognized and respected as equal citizens and human beings with a
contribution to make; Power means being able to make a contribution at all levels of
society and not just in the home; Power also means having women's contribution
recognized and valued.
Empowerment is instrumentally important for achieving positive development

outcomes and well-being of life which lies in the doing and being what one value and
have reason to value i.e. agency. Sen. make a strong claim for increasing the agency
of the individual to enable them to be an effective agent of their own well- being and
development. The concept of empowerment is very complex in itself indeed very
fuzzy also; different scholars hold different definition of empowerment according to
the need of their work. Women‘s agency, autonomy and empowerment are widely
12
used idea in development literature and capability approach. But there exists
substantial ambiguity in conception of these ideas. While women‘s well- being and
women‘s agency is sufficiently distinguished from each other, there seems to be a
large overlap between agency and empowerment and between agency and autonomy.
The present paper examines various conceptions of these ideas to clearly mark
overlapping zones and distinguishing features of respective concepts (Tripathi, 2010).
Rappport analyze the same matter in different way he focused on the Individual
empowerment is a process of personal development in a social framework: a
transition from a feeling of powerlessness, and from a life in the shadow of this
feeling, to an active life of real ability to act and to take initiatives in relation to the
environment and the future. Community empowerment also includes a definition of a
community as a partial, temporary and dynamic unit that originates in the human need
for a sense of togetherness and identification with others. Community empowerment
can be realized in geographically defined areas that constitute the common critical
characteristic of their residents, or it can develop in groups with other common critical
characteristics, such as origin, age, gender, or physical disability. The discussion of
individual and community empowerment has also touched upon the political meaning
of empowerment. The perception of the empowerment process on all its levels as a
political process is important to the present study, and is influenced by feminist
thought, which accords a new meaning to social change. The group and the
community organization are the main means of activating environmental processes.
These are the settings which actively connect the individual with his environment and
make possible a change which includes the individual, the group, and the environment
in the one process (Rappport, 1987). Empowerment is a process of awareness and
capacity building to greater decision making power and control resulting in
transformative action (Acharya, 1997).
2.1.2 Gender and Development (GAD)
Gender and Development (GAD) – refers to the development perspective and process
that is participatory and empowering, equitable, sustainable, free from violence,
respectful of human rights, supportive of self-determination and actualization of
human potentials. The GAD approach focuses on the socially constructed differences
between men and women, the need to challenge existing gender roles and relations,
13
and the creation and effects of class differences on development. Gender is
an important consideration in development. It is a way of looking at how social norms
and power structures impact on the lives and opportunities available to different
groups of men and women. Globally, more women than men live in poverty. In many
communities, gender inequality is one important root cause of children's
poor development in the early years (Acharya & Acharya, 1997).
Gender discrimination together with son preference mean that young girls receive less
nutrition, opportunities to play and access early learning than young boys. Gender
identity typically develops in stages: Around age two: Children become conscious of
the physical differences between boys and girls. Before their third birthday: Most
children can easily label themselves as either a boy or a girl. By age four: Most
children have a stable sense of their gender identity (Kharel, 2017). Over time, WID
evolved into GAD focuses on analysing the roles and responsibilities that are socially
assigned to women and men, the social relations and interactions between women and
men, and the opportunities offered to one and the other. The purpose of GAD is to
ensure that both men and women can participate in, and benefit from, development in
a way that is equitable. In view of widespread disparities it is a process comprising
both short-term and long-term objectives - "practical and strategic needs" (Molyneux
from Moser, 1993). GAD is one of the most frequent of all psychiatric disorders seen
in primary care — second only to depression — but women are twice as likely as men
to have this disorder. Compared with other patient groups, patients with GAD have
higher rates of medical appointments and clinical investigations (Besley & Case,
2000).
Gender equality has an important role in the economic development of a country. ...
Meanwhile, Cavalcanti and Tavares (2007) suggests that gender inequality in work
have relationship with higher fertility rates, which in turn reduces economic growth.
Therefore, the education of girls actually has a higher marginal return.
2.1.3 Marxist Feminism
Marxist feminism is a species of feminist theory and politics that takes

its theoretical bearings from Marxism, notably the criticism of capitalism as a set of
structures, practices, institutions, incentives, and sensibilities that promote the
14
exploitation of labor, the alienation of human beings, and the debasement of. Marxist
feminism is a sub-type of feminist theory which focuses on the social institutions of
private property and capitalism to explain and criticize gender inequality and
oppression. Marxism posits that the struggle between social classes - specifically
between the bourgeoisie, or capitalists, and the proletariat, or workers - defines
economic relations in a capitalist economy and will inevitably lead to revolutionary
communism (Donley, 2008).
Like the other classical economists, Karl Marx believed in the labor theory of value to
explain relative differences in market prices. This theory stated that the value of a
produced economic good can be measured objectively by the average number of
labor-hours required to produce it. Based on the supposition that under like social
conditions, each person realizes, in principle (as a value), equal work in the same
period of time, Marx sees in work not only the substance common to all goods, but
the unit of measure of well-being in society (Kharel, 2017).
2.2 Empirical Review
Microfinance, a poverty alleviation tool to mitigate the vulnerability of the people of

the weaker section in the society, has widely been implementing all over the world by
engaging especially, the women in the main stream economic development. From the
conducted study suggests that microfinance has been able to make poor women
psychologically empowered and has raised their consciousness level high. It is also
found that now they are equally capable of executing their decision- making power in
the family matters. From the table of consciousness level of the beneficiaries, it is
evident that the consciousness level regarding exercising voting right, preparing oral
saline and drinking tube well water is satisfactory while the habit of using
contraceptive is little bit low. Thus for the overall development of the country
including rural sector, the weaker section women must be included as the key force
with the existing male dominated financial sectors and all the development program
must be addressed to the financially backward women (Chittagong Rajib Chakraborty
and Jayamani, 2013).
Poudel and Pokharel (2017) concluded that SFCL has positive impact on women
empowerment; first in economic sense and consequently socio-cultural dimensions.
15
Since SFCL delivers services primarily targeting people to acquire economic strength.
This could be stepping-stone to enter in empowering socio-economic perspectives. In
addition of economic support, SFCL delivers services to women to uplift socio-
cultural standard. Service delivery system of SFCL does not directly support to
encourage women in political activities, though it implies in political sense. It has
emphasized women for microcredit programs in material resources and their control
over it. In addition of economic aspects, role of SFCL is significantly higher in socio-
cultural empowerment than the political empowerment. SFCL being an independent
and non-political organization, people do not discuss in political issues, but indirectly
women become aware on their political rights. The statistical analysis of t-test also
shows the significant difference in socio-cultural and political empowerment of
women after involvement in it.
Dongre (2019) concluded that a quiet revolution is in the making through the
entrepreneurial/self-employment/business development loans disbursed by Souhardha
co-operatives. There are clear indications that the economic empowerment, though at
a small scale, are facilitated by Souhardha women cooperatives, and there are
evidences that this has had its ramifications in terms of social and political
empowerment as well. Institutionalizing such programs is an indication that
cooperatives are well equipped (though not fully conscious of it) to identify the
members and local needs and respond to it appropriately. SDGs have a focus on all-
round empowerment of women apart from addressing problems of poverty of all
forms and at all levels. Women co-operatives are ideally designed to address this twin
goals. By helping women engage in income generation activities, they empower them
economically which directly address the issues of poverty and indirectly contributes
to overall empowerment of women. Therefore, such schemes need to be show cased
and the co-operatives need to appreciate the invisible benefits of the schemes better
and highlight them within their member community.
2.3 Conceptual Framework
Review of literature has provided the sources for the identification of theoritical
foundation, different parameters are taken into consideration accordind to need of the
various objectives.
16
Following conceptual framework has been operationalized in this study.
Fig. 2.2: Conceptual Framework:
Independent Variables Dependent Variables
Saving
Income
Loan
Economic
Empowerment
Job creation of Women
Self-employment
Economic Awareness
Saving habit of member women, source of income of women respondents, loan use
practice of member women, Job creation, Self-employment and Economic Awareness
are independent variable whereas Economic empowerment of women is dependent
variable.
17
CHAPTER III
RESEARCH METHODOLOGY
3.1 Research Design
A research design is a plan for the collection and analysis of data. It is an organized
approach and not a collection of loose, unrelated parts. The research design serves
instruments to be utilized and the sampling plan to be followed. It presents resides of
guide posts to enable to researcher to progress in the right direction in order to
achieve goal. The design may be a specific presentation of the various steps in the
research process. The steps include the selection of a research problem, formulation of
hypothesis, conceptual clarity and methodology, survey of literature and
documentation, bibliography, data collection, testing of hypothesis, interpretation,
presentation and report writing.
To conduct these studies analytical and descriptive approach has adopted. Analytical
research objectives and research problem of the study.
3.2 Selection of Study Area
The sample is selected from groups of Women. The study has covers only five years
of data. The study has analyzed on the basis of the performance of participating
people from micro enterprise groups.
The study has conducted at Shuklagandaki Municipality-2, Tanahun. It is one of the

famous places for innovative activities in Tanahun district. Many cooperative are
working in Tanahun. In this situation, it is very important to know socio- economic
status of women at the study area, change in socio-economic condition of the rural
women after participation in micro financing program and to analyze the role and
importance of co-operative to enterprise development, access to financial services and
social development. Majority of the cooperative members are on the way of
empowerment. One of the many reasons for carrying out the research work is my
18
familiarity with Shuklagandaki Municipality-2, Tanahun, is selected as my home
place to which I am familiar with place and people.
3.3 Universe and Sample
Due to various constraints, whole universe has impossible to be studied. However, all
the co-operatives working with in Shuklagandaki Municipality, Tanahun was
supposed to be a universe. Women affiliated / gained membership of Royal
Cooperative has the main sources of study. The study could cover the Shuklagandaki
Municipality-2 and related women who was directly and indirectly involved in co-
operative program. The area of this study was selected by using purposive sampling.
There are 404 women shareholders who have more than 500 rupees. Out of the 404
women shareholders (Royal Cooperative Profile, 2020), 101 women was taken as
sample by using simple random sampling method. Present researcher believes that 25
% sample was sufficient to represent most of the social as well as economic aspects of
the respondents. Under simple random sampling method required sample was selected
using Lottery Method which provide free from biasness
3.4 Nature and Source of Data
This study was mainly based on primary data. These primary data was both
qualitative as well as quantitative.
3.4.1 Primary Data
Primary data was collected from actual field using questionnaire schedule and
observation.
3.4. 2 Secondary Data
Secondary data was collected from reports of municipality, Journals of microfinance,

published books, unpublished books, thesis, and newspaper and other related
published journals and article, annual reports from municipality and cooperative.
19
3.5 Data Collection Tools and Techniques
Questionnaire and observation are the main tools of data collection.
3.5.1 Questionnaire Schedule
Questionnaire schedule was used to get qualitative information. But some important
quantitative information is also collected the respondents of questionnaire survey are
the sample numbers and group managers of the program.
3.5.2 Field Observation
In this technique direct observation on field was done. Women‘s condition about
economy and other facilities' considered.
3.6 Reliability and Validity of Data
Reliability is the degree to which measures are free from error and therefore yield
consistent results. Validity is the extent to which a test measure that we actually wish
to measure. During the study, time to time visit with the expert instructor was done in
order to ensure the reliability and validity of the study.
Thus, the questionnaire preparation and distribution for data collection ensure high
reliability and validity because it was prepared in guidance of an expert, who
oversaw the entire thesis development with pouring the set of standard in each step.
To check the reliability of the data before data collection, Pilot testing was
conducted with 10% of samples.
3.7 Data Processing and Analysis
The available data was edited, classified and tabulated in appropriate form. Processing
of data was done by the computer using Microsoft Excel.
Analysis is the careful study of available facts so that one can understand and draw
conclusion on the basis of established principles and sound logic. Various analysis
tools are used. The following techniques were followed in analyzing the data:
20
1. Collection of relevant information.
2. Identification of data suited to fulfill the purpose of the study.
3. Classification and tabulation of data.
4. Use of percentage charges, average, ratios.
5. Drive conclusion, summary and recommendations were based on the analyzed
data.
Some statistical tools such as mean are used. Mean is the central value on an average.
A simple arithmetic mean is determined by dividing the sum of values by number of
the observations.
21
CHAPTER IV
SOCIO DEMOGRAPHIC PROFILE OF RESPONDENTS
This chapter attempts to analyze the information received from the questionnaires,
observations, case study, field survey and informal discussions with women.
Especially analysis process and contents are determined as per set of objectives for
the study. It consists of savings, investments, repayment pattern of loan, income from
loan, impact on income, consumption, health and education.
4.1 Socio Economic Status of Women
From the profile of respondent it has been found that the program has benefited to all
the borrowers. For the purpose of study, perception of the sample women towards the
program with respect to education level, age structure, ethnic group, priority sector,
confidence of women etc. are shown:
4.1.1 Education Level
Education is most important thing all over the world. Therefore it is lamp of the
world. Following table shows the education level and their perception of sample
women.
Table 4.1: Response on the Education Level of Women
Education Level Perception toward the Program Total

Highly Benefited Low Benefited
Illiterate 7 4 11
Literate ( person who can just read 14 10 24
and write)
Under SEE 17 15 32
SEE pass 11 7 18
Certificate & above 12 4 16
Total 61 40 101
Source: Field Survey, 2021.
22
Out of 101 respondents 11 were illiterate, 24 respondents were literate, 32 were under
SEE, 18 SEE pass and 16 were certificate level and above. In totally, more
respondents were literate. On the other hand 61 respondents were highly benefited
and 40 were low benefited. Hence from the above table we can say that illiterate,
literate, Under SEE, SEE pass, Certificate level and above all are getting high benefit
from the microfinance program.
4.1.2 Age Structure:

In the research study it has been found that the age structure of women was in
between 20 to 60 above years and all were married. It has been shown in the
following table.
Table 4.2: Response on the Age Structure of Women
Age Structure Perception toward the Program Total

20-30 9 6 15
30-40 28 16 44
40-50 18 10 28
50-60 7 5 12
60 & above 2 - 2
Total 64 37 101
15, 44, 28, 12, 2 are in age class of 20-30, 30-40, 40-50, 50-60, and 60 above years
respectively. Highly benefited women were more than low benefited.
4.1.3 Ethnic Group
Generally high class, middle class and low class of women were found on field survey
according to their cast status. The following table shows the class of women and their
perception toward benefit.
23
Table 4.3: Response on the Ethnic Group of Women
Ethnic Perception toward the Program Total

Higher class (Brahmin and Chettry) 31 24 55
Middle class (Magar and Newar) 15 14 29
Lower clas (Pariyar and Bishowakarm ) 9 8 17
Total 55 46 101
Higher Class : Brahmin and Chettry.

Middle Class : Magar and Newar.
Lower Class : Pariyar and Bishowakarm (B.K).
55 participating women were involved from higher class, 29 from middle class and 17
from lower class. So that we can easily say that microfinance program is able to
convince lower class women too successfully. It reveals that higher class women were
getting high benefit from the program.
4.1.4 Priority Sector after Improvement In Economic Condition
Every people have their own interests and future plan. Like this, these microfinance
women also have their own future plan to give priority in different sectors after
improvement in their economic condition which is shown in the following table.
Table 4.4: Priority Sector Areas
Sector Number of Women Percentage

Education 16 15.84
Health 18 17.82
Fooding 52 51.49
Saving 15 14.85
Total 101 100.00
Table shows the priority sector of participatory women. Main priority sector of
women were education, health, fooding, saving. Out of 101 respondents 16 prefer
education, 18 prefer health, 52 prefer fooding, 15 prefer saving after improvement in
their economic condition. In percentage, higher pc of women prefers fooding i.e.
51.49% and lower pc of women prefer saving i.e. 14.85%.
24
CHAPTER – V
IMPACT OF MICROFINANCE IN ECONOMIC
EMPOWERMENT OF WOMEN
5.1 Saving By Group Members in Different Saving Programs

The state of saving by women in different saving programs is shown in table saving
habit of the members in cooperative is the fundamental aspect.
Table 5.1: Saving by Group Members in Different Saving Programs

(In Rs.)
Fiscal Group Saving Centre Fund Individual Total
Year Saving Saving
Amount % Amount % Amount % Amount %
2015/16 2332575 15.52 143512 16.32 182218 24.25 2658305 15.95
2016/17 2441839 16.24 157724 17.93 194892 25.93 2794455 16.77
2017/18 3220645 21.43 164013 18.65 171344 22.80 3556002 21.34
2018/19 3758378 25.00 189234 21.51 107623 14.32 4055235 24.34
2019/20 3277974 21.81 225126 25.59 95421 12.70 3598521 21.60
Total 15031411 100 879609 100 751498 100 16662518 100
% in 90.21 5.28 4.51 100
total
Source: Microfinance
The above table shows the saving of members of in different saving programs in last
five fiscal years. There were different saving amounts in different headings. The
overall saving from different saving programs was Rs 1,662,518. The total saving of
group saving was Rs 15,031,411, centre fund saving was Rs. 879,609, and individual
saving was Rs 751,498. Overall percentage in group saving was 90.21%, in centre
fund saving was 5.28% and in individual saving was 4.51%. So there was greatest
percentage of saving in group saving. The total saving in last five fiscal years were Rs
2,658,305 in 2016/17, Rs 2,794,455 in 2017/18, Rs 3,556,002 in 2018/19, Rs
4,055,235 in 2018/19 and Rs 3,598,521 in 2019/20. There was greatest pc of saving in
fiscal year 2017/18 which was 24.34% and smallest percentage of saving was in
25
2015/16 which was 15.95%. The greatest percentage and amount of group saving was
in 2017/18, centre fund saving was in 2019/20 and Individual saving was in 2016/17
which were 25%, 25.59%, 24.34% and Rs 3,758,378, Rs 225,126, Rs 194,892
respectively. The smallest percentage and amount of group saving was 15.52% and Rs
2,332,575 in fiscal year 2015/16, centre fund saving was 16.32% and Rs 143,512 in
fiscal year 2015/16 and in individual saving was 12.70% and Rs 95,421 in fiscal year
2019/20.
5.2 Regular Saving of Women
The regular saving of sample women is shown in following table.
Table 5.2: Monthly Regular Saving of Sample Women
Amount in Rs. Before After % Increase/

Numbers % Numbers % Decrease
None 41 40.59 32 31.68 (8.91)
0-100 28 27.72 29 28.72 1.00
100-200 18 17.82 19 18.81 .99
200-300 9 8.91 10 9.90 .99
300-400 5 4.96 7 6.93 1.97
400 & more - - 4 3.96 3.96
Total 101 100.00 101 100.00
The above table shows the regular saving of sample women in both number and
amounts. It also shows the saving of sample women before and after involvement in
programs and percentage change in saving. 41 women were not saving regularly
before involvement in this programs but after the number is 32 with 8.91% decrease.
There were no women who are saving Rs 400 and more before involvement in
programs but after the number are 4 with 3.96% increase. The number of women
falling in saving amount class Rs 0 to 100, Rs 100 to 200, Rs 200 to 300, Rs 300 to
400 were 28, 18, 9, 5 and 29, 19, 10, 7, 4 were before and after respectively. Similarly
the percentage change in saving amount class Rs 0 to 100, Rs 100 to 200, Rs 200 to
300, Rs 300 to 400 were 1.00, 0.99. 0.99, and 1.77 percentage respectively.
26
5.3 Optional Saving of Women
Not all women were regular saving and not all women were optional saving in
Programs. There was no compulsory saving in their programs. So some women were
in optional saving programs. The optional saving of sample is shown in table.
Table 5.3: Monthly Optional Saving of Women
Amount in Rs. Before After % Increase/

None 34 33.66 27 26.74 (6.92)
0-100 37 36.64 34 33.66 (2.98)
100-200 14 13.86 18 17.82 3.96
200-300 7 6.93 10 9.90 2.97
300-400 6 5.94 7 6.93 0.99
400 & more 3 2.97 5 4.95 4.90
Total 101 100.00 101 100.00
The above table shows the optional saving of sample women in both number and
amounts. It also shows the saving of sample women before and after involvement in
programs and percentage change in saving. 34 women were not saving optionally
before involvement in programs but after the number was 27 with 6.92% decreased.
The number of women falling in saving amount class of Rs 0 to 100, Rs 100 to 200,
Rs 200 to 300, Rs 300 to 400, Rs 400 and more were 37, 14, 7, 6, 3 and 34, 18, 10, 7,
5 were before and after respectively. Similarly the percentage change in saving
amount interval class of Rs 0 to 100, Rs 100 to 200, Rs 200 to 300, Rs 300 to 400, Rs
400 and more were (2.98), 3.96, 2.97, 0.99, 4.90 percentage respectively.
5.4 Sectors of Women Saving

Most of the Women were saving small amount of money from agriculture, buffalo
keeping, goat keeping, poultry farming, retail business, pig keeping etc. The status of
women saving is shown in following table.
27
Table 5.4: Sectors of Women Saving
Sectors Before After % Increase/

Agriculture 27 26.74 29 28.72 1.98
Buffalo Keeping 16 15.84 16 15.84 -
Goat Keeping 18 17.82 16 15.84 (1.98)
Poultry Farming 14 13.86 12 11.88 (1.98)
Retail Business 15 14.85 17 16.83 1.98
Beauty parlor 4 3.96 5 4.95 0.99
Pig Keeping 7 6.93 6 5.94 (0.99)
Total 101 100.0 101 100.0
The above table shows that the sample women involved in different types of
economic activities to save money before and after entering this programs. Out of
total savers of sample survey, about one-fourth was involved in agriculture and rest in
others.
Before entering the program, 27 women were saving from agriculture but after the
number reached to 29. Only 4 women were saving from bio gas before and after they
were 5. The sectors of women saving were taken from only microfinance activities.
Similarly the number of women saving from goat keeping, poultry farming and pig
keeping were reducing in number from 18, 14 and 7 to 16, 12 and 6 before and after
entering the programs respectively. There was 1.98% increase in women's saving
from agriculture and retail business both. Also there was no change in buffalo
keeping.
5.5 Mobilization of Collected Saving Fund
Saving and investment are two alternative parts. If people save they will be motivate
to invest that money to earn more. So the women involving in programs and saving
small money are lending that money to other people in community. Doing this both
people are benefited. Investor can get interest and borrower can utilize that money in
appropriate area. Following table shows the lending activities of women who are
involved in this programs.
28
Table 5.5 : Mobilization of Collected Saving Fund
Description Before After % Increase/

Yes 58 57.43 63 62.38 4.95
No 43 42.75 38 37.62 (5.13)
Total 101 100.00 101 100.00
Above table shows that the sample women involved in mobilization of saving, before
involvement in this programs, 58 women were mobilizing their money and 43 women
were not mobilizing their small save money. But after involvement in this program,
number of mobilizing women increased to 63 and the number of women who were
not mobilizing decrease to 38. Hence there was 4.95% increase in women who
mobilize money and the number of women who were not mobilizing was decrease by
5.13%.
5.6 Interest Expenses on Savings
When there is saving there is investment. After investment, saved money is charge by
interest. Microfinance Collect some small money from women. For this they will get
interest. The interest is expenses for. The state of interest expenses in different saving
programs is shown in table.
Table 5.6: Interest Expenses on Different Saving Programs
(In Rs.)
Fiscal Group Saving Centre Fund Individual Total
Year Saving Saving
Amount % Amount % Amount % Amount %
2015/16 77892 17.86 4750 18.44 3520 21.00 86162 18.00
2016/17 73461 16.85 4344 16.86 3277 19.55 81082 16.94
2017/18 87527 20.07 4806 18.66 4131 24.65 96464 20.15
2018/19 104882 24.05 5464 21.21 3321 19.82 113667 23.75
2019/20 92345 21.17 6397 24.83 2511 14.98 101253 21.16
Total 436107 100 25761 100 16760 100 478628 100
Source: Royal Cooperative, Dulegaunda.
29
The above table shows the interest expenses on saving of group members of this in
last five fiscal years. The overall total interest expenses on different saving programs
were Rs 478,628. The total interest expenses on group saving was Rs 436,107, centre
fund saving was Rs 25,761 and in individual saving was Rs 16,760. There was
greatest interest expenses on group saving. The total interest expenses on different
saving programs in last five fiscal years were Rs 86,162 in 2015/16, Rs 81,082 in
2016/17, Rs 96,464 in 2017/18, Rs 113,667 in 2015/18 and Rs 101,253 in 2019/20.
The overall greatest percent of interest expenses was on fiscal year 2017/18. The
greatest percentage of interest expenses on group saving was 24.05%, on centre fund
saving was 24.83% and on individual saving was 24.65. The smallest percentage of
interest expenses on group saving was 16.85%, on centre fund saving was 16.86% and
on individual saving was 14.98%.
5.7 Activities of Women Members

Loan disbursement repayment, outstanding etc. are related to lending activities of
women's. Loan disbursement to the targeted women is significant for reaching aspect
of the livelihood upliftment. The implementing selects an appropriate enterprise to the
targeted women according to their choice and recommend them for loan on the basis
of group decision. The responsibility of operating business and repayment of loan
with interest lies on the borrowers of finance. However the capacity of loan
repayment depends on the performance of women and the income earning from the
programs of.
The main loan activities of microfinance are micro business and micro enterprise.
Micro business loan is for small business activities which don‘t need collateral. But in
micro enterprise loan collateral is needed sometimes. Both of these activities consist
of retail business, agriculture, industry, foreign employment, bio-gas, buffalo keeping,
goat keeping, poultry farming etc. According to survey of Royal Cooperative,
Dulegaunda, 90% of loan is recovery on time but 10% is difficult to recover on time
due to different problems. From the report of microfinance Royal Cooperative,
Dulegaunda, there are 102 number of weak loan, 46 number of doubtful loan and 237
number of bad loan. There are altogether 1021 loan numbers. Bad loan is such a loan
which is not paid by members in groups of microfinance.
30
5.8 Loan Disbursement in Different Programs:
Royal Cooperative, Dulegaunda distributes loan on different programs. The state of

loan disbursement by Royal Cooperative, Dulegaunda in last five fiscal years is
shown in table.
Table 5.7 : Loan Disbursement by Microfinance in Last Five Fiscal Years
Fiscal Micro Business Micro Micro Total
Years Loan Enterprise Enterprise Loan
Loan 'Ka' 'Kha'
Amt. % Amt. % Amt. % Amt. %
2015/16 12327890 16.43 282350 15.03 - - 12610240 15.00
2016/17 14215230 18.94 301220 16.04 - - 14516450 17.26
2017/18 18208810 24.26 411450 21.91 2291593 32.01 20911853 24.87
2018/19 16811180 22.40 566875 30.18 2553273 35.66 19931328 23.70
2019/20 13490310 17.97 316250 16.84 2314465 32.33 16121025 19.17
Total 75053420 100 1878145 100 7159331 100 84090896 100
Source: Royal Cooperative, Dulegaunda.
The upper table shows the distribution of loan to the women of microfinance in fiscal
years from 2015/16 to 2019/20. There are three kinds of loan. They are micro
business loan, micro enterprise loan 'ka' and micro enterprise loan 'kha'. Micro
enterprise loan 'ka' is distributed without collateral but collateral is needed for micro
enterprise loan 'kha'. The overall total loan distribution in last five fiscal years was Rs
84,090,896. Out of this Rs 75,053,420 was distributed in micro enterprise loan 'ka'
and Rs 7,159,331 was distributed in micro enterprise loan 'kha'. In fiscal years
2015/16 and 2016/17 there was no micro enterprise loan 'kha'. The highest percentage
of loan distribution in micro business loan was 24.26% in fiscal year 2017/18
amounting Rs 18,208,810 in micro enterprise loan 'ka' was 30.18% in 2017/18
amounting to Rs 566,875 and in micro enterprise loan 'kha' was 35.66% in fiscal year
2017/18 amounting Rs 2,553,273. In overall the highest percentage of loan
distribution was 24.87% in fiscal year 2017/18 and smallest percentage of loan
distribution was 15% in fiscal year 2015/16 amounting Rs 20,911,853 and Rs
12,610,240 respectively.
31
5.9 Number of Members Women Taking Loan:
Most of the women were not financially sufficient. So they were taking loan to run
their livelihood and also to earn some money. Following table shows the numbers of
women taking loan before and after involvement in microfinance activities.
Table 5.8: Number of Women Taking Loan

Response
Description Number %
Yes 92 91.10
No 9 8.90
Total 101 100.00
Table shows that before involvement of microfinance program. Out of 101 sample
women, 92 (91.10%) women were taking loan. Women who were not using loan
facility were 9 (8.90 %).
5.10 Sectors of Loan Mobilization by Members Women
There are various sectors of taking loan by women from microfinance programs. The
following table shows the number and percent of women involved in various sectors
of microfinance while taking loan.
Table 5.9: Sectors of Loan Mobilization
Sectors After
Numbers %
Agriculture 23 25.00
Buffalo Keeping 17 18.48
Goat Keeping 16 17.39
Retail Business 18 19.57
Beauty parlor 6 6.52
Poultry Farming 7 7.61
Pig Keeping 5 5.43
Total 101 100.00
Source: Field Survey, 2021
32
Above table shows that the sample women involved in different types of economic
activities before and after entering into microfinance programs, out of total borrowers
of sample survey, about one-fourth were involve in agriculture and rest in other
different programs. After implementation of program women did not left their old
business but they motivate to make that business success.
5.11 Condition of Business which is Running From Loan

Women are doing business from the loan which was taken from microfinance. They
were also doing business from loan prior to entering microfinance. So following table
shows the condition of business which was running by them from loan.
Table 5.10: Condition of Business which is running from Loan

S.N. Description After
Numbers %
1 Running well. 87 87
2 Not Running well 14 14.
Total 101 100.00
Source: Field Survey, 2021
The above table shows the condition of business which is running well or not. Out of
101 women, 87 said that their business was running well but 14 said that their
business is not running well.
5.12 Income from Investment

Investment is using fund to raise more funds. The fund which is generated from
investment is income. So money is invested in the form of loan at certain percentage
of interest. Loan is recovered with interest after certain period of time. Fund without
investment is useless. This fund investment is playing greater role to increase the
livelihood of microfinance women.
Income and investment are interrelated. Without investment there is no income and
without income there is no investment. Following table shows the response of women
getting income from loan investment of microfinance and before microfinance
programs. Description is divided in to maximum, minimum and no income. Table
33
also makes clear about number of women and percentage of women getting income
from investment.
Table 5.11: Income from Investment

Description Response Percentage
Maximum 48 48
Minimum 41 41
No 12 12
Total 101 101
Above table shows the number of women and percent of women getting income from
investment. Response of women was maximum income benefit, minimum income
benefit and no income. After involvement in microfinance programs 48, 41, and 12
women were getting maximum, minimum and no income from investment
respectively.
5. 13 Amount Invested by Women in Different Sectors

Loan taken by women was invested in different sectors before and after entering in to
microfinance programs. The following table shows the response of sample women
who invest different amounts in different sectors.
Table 5.12: Amount Invested by Women in Different Sectors
Amount in Rs. Response Percentage

0-10000 19 19
10000-20000 27 27
20000-30000 17 17
30000-40000 16 16
40000-50000 15 15
50000-60000 7 7
Total 101 100
The above table shows the amount invested by sample women in different sectors
involvement in microfinance programs. The number of women investing Rs 0 to
34
10000 was 19%, Rs 10,000 to 20,000, Rs 30,000 to 40,000, Rs 40,000 to 50,000, and
50000 to 60000 was 27 %, 17 %, 16%, 15% and 7 % respectively.
5.14 Monthly Income of the Women

Income of women was varying in microfinance Royal Cooperative, Dulegaunda.
Some women were rich and some were poor. The following table shows the monthly
income of the women before and after involvement in microfinance programs.
Table 5.13: Monthly Income of Women
Income Range Before After % Increase/

in Rs. Numbers % Numbers % Decrease
0-5000 36 35.65 32 31.69 (3.96)
5000-10000 28 27.72 26 25.74 (1.98)
10000-15000 17 16.83 21 20.79 3.96
15000-20000 12 11.88 13 12.87 0.99
20000 & more 8 7.92 9 8.91 0.99
Total 101 100.00 101 100.00
Above table shows the monthly income of women in different range before and after
entering microfinance programs. Around one-third women were earning between Rs 0
to 5000 before and after the program. The highest income ie Rs 20,000 & more were
earning by 8 & 9 women before and after the program respectively. There was
decrease in number and percentage of women which were earning low income after
entering the program but increase in numbers and percentage of women which were
earning high income after entering the program. In overall the earning range of
women was not so high in this program women's.
5.15 Future Program Needed to Uplift the Livelihood of Poor Women
There are some programs which are needed to uplift the livelihood of poor women.
There are different perceptions of women about different programs which are needed
for them. Following table shows the different facilities needed for poor women.
35
Table 5.14: Future Programs for Poor Women
S.N Description Number of Women Percentage

1 Low interest rate 12 11.88
2 More loan amount 18 17.82
3 Long repayment time 16 15.84
4 All of above 55 54.46
Total 101 100.00
Table shows the number and percentage of women which have needed different
facilities from microfinance to run their livelihood. Out of 101 sample women there
were 12 women who prefer low interest rate, 18 women prefer more loan amount, 16
women prefer long repayment time and 55 women prefer all of above. Similarly the
percentage of women who prefer low interest rate was 11.88% more loan amount was
17.82%, long repayment time was 15.84% and all of above was 54.46%. So the
women who prefer all the above programs were more than fifty percent.
5.16 Confidentiality of Participating Women
In the research study it has been found that some participating women have maximum
confidentiality, some has minimum and some has no confidentiality of becoming
successful entrepreneur in future. This status is shown in the following table 4.15.
Table: 5.15: Response on the Confidentiality of the participants to stand
themselves as successful entrepreneur in future
S.N Description Number of Women Percentage

1 Maximum 58 57.43
2 Minimum 35 34.65
3 No 8 7.92
Total 101 100.00
The above table reveals that in totality 57.43% respondent women have maximum
confidentiality and 34.65% and 7.92% respondent have minimum and low
confidentiality of becoming successful women entrepreneur in future. Likewise on the
36
basis of number of women 58, 35, and 8 women have maximum, minimum and no
confidentiality of becoming successful women entrepreneur in future respectively so
more than 50% of women have maximum confidentiality of becoming successful
women entrepreneur in future.
5.17 Improvement in Living Standard of Women after Joining

Microfinance
Following table shows the improvement in living standard of women after

participating microfinance program activities.
Table 5.16: Response on Improvement in Living Standard of Women

Description Number of Women Percentage
Yes 90 89.11
No 11 10.89
Total 101 100.00
The above table reveals that the response of participating women about their life
standard after participating in microfinance program. In totality, 89.11% of women
said that their life standard has change after entering in to microfinance program and
10.89% of women said that there is no change in their life style. In number also, out
of 101 sample women, 90 women said that their life standard has change after joining
microfinance program and 11 women said that there is no change in their life style.
5.18 Sanitation Used by Respondents

Health and hygiene is the biggest of every person so that proper sanitation and
disposal of garbage is very important for people‘s health. Healthy peoples are great
assets for nation. They are nation builders. If the sanitation is not proper, people get
infected from various transmitted disease. That's why the researcher has tried to find
out the level of awareness about health and sanitation of respondents after joining the
Micro Finance program.
37
Table 5.17: Toilet (Pakka) Used by Members Women
Particulars Before involvement After involvement
Number Percentage Number Percentage
Modern Toilet 41 40 53 52
Toilet and Bathroom 20 20 32 32
Bathroom only 0 0 8 8
Normal Toilet 40 40 8 8
Source: Field Survey 2020
Viewing the table, 40% of the respondent replied that they used normal toilet and
bathroom and 40% replied that they use only toilet. Viewing the pattern of using toilet
and bathroom after being involved in Micro Finance program it can conclude that
Micro Finance programs has created awareness program regarding sanitation which
helps to control pollution in some extent which exist from toilet.
5.19 Impact of Microfinance in Family Decision Making

Respondents were asked by the researcher about the family decision making, political
awareness and knowledge of human right has changed or not after joining of Micro
Finance program. Most by them said that decisions are made on mutual understanding
and discussion after Micro Finance program. They said due to joining Micro Finance
program and generating some income, their family member‘s attitude is remarkably
changed. Group discussion among the group‘s members has gained momentum to
change the society‘s attitudes and beliefs.
After joining the microfinance program and interacting with the field staff of banks or
institutions from where they have taken loan, they have built the confidence level,
increase bargaining ability. As a result respondents are free and frank to express their
views and raise question. After the involvement of Micro Finance programs
respondent‘s knowledge about political awareness and human right issues has
significantly increased. This means Micro Finance programs definitely changes the
status of women in family and society. Microfinance has created positive impact on
the members in relation to decision making and awareness issues such as political,
human and women right, social development and quality of life.
38
Table 5.18: Response on Change in the Consumption of Nutritional Foods before
and After Involvement
Description Number of Before retfA

Women Response Percentage Response Percentage
Yes 91 84 84 94 94
No 10 16 16 6 6
Total 101 100.00
Source: Field Survey 2020
The above table reveals about response on change in the consumption of nutritional
foods before and after involvement. Before involvement of microfinance 84 percent
respondents express that they have good nutrition and 16 percent respondents' have
not feel they have good nutrition but after involvement of microfinance programme
only 6 percent respondents' have not feel they have good nutrition which situation
reveals about the change in the consumption of nutritional foods after involvement of
microfinance.
5.20 Response as Continuing their Business in Future

If people see more profit in future, then he/she will be motivated to continue their
business in coming future. Like this some sample women of microfinance program
were motivated to continue their business in future and some are not interested in
those activities. Following table 5.19 shows the women's response in continuing their
business in future.
Table 5.19: Response of Women as Continuing their Business in future

Description Number of Women Percentage
Yes 92 91.10
No 9 8.90
Total 101 100.00
Above table reveals about the women's response of continuing their present business
in future, in this research survey, out of 101 sample women, 92 women have intension
39
of continuing their business in future also which was 91.10%. But 9 sample women
have no intention of continuing their business in future which was 8.90 %. So this
field survey shows that maximum number of women was interested to continue their
business in future also.
40
CHAPTER VI
SUMMARY, CONCLUSION
5.1 Summary
Role of Microfinance on Economic Empowerment of Women (A Sociological Study

of Royal Cooperative Limited Dulegaunda) is the title of the thesis. To find out the
monthly saving of women respondents and to analyze the impact of micro finance to
improve in economic status of the member women is main thrust of the present study.
To conduct these studies analytical and descriptive approach has adopted. Analytical
research objectives and research problem of the study. The sample is selected from
groups of Women. All the co-operatives working with in Shuklagandaki Municipality,
Tanahun was supposed to be a universe. Women affiliated / gained membership of
Royal Cooperative has the main sources of study. The study could cover the
Shuklagandaki Municipality-2 and related women who was directly and indirectly
involved in cooperative program. The area of this study was selected by using
purposive sampling. Out of the 404 women shareholders, 101 women were taken as
sample by using simple random sampling method. Under simple random sampling
method required sample was selected using Lottery Method which provide free from
biasness
This study was mainly based on primary data. These primary data was both
qualitative as well as quantitative. Secondary data was used in this study was
collected from different sources such as various research studies, dissertation and
article related to the study and Annual reports from municipality. Questionnaire
schedule was used to get qualitative information. But some important quantitative
information is also collected the respondents of questionnaire survey are the sample
numbers and group managers of the program. The available data was edited, classified
and tabulated in appropriate form.
Out of 101 respondents 11 were illiterate, 24 respondents were literate, 32 were under
SEE, 18 SEE pass and 16 were certificate level and above. In totally, more
41
respondents were literate. On the other hand 61 respondents were highly benefited
and 40 were low benefited. Hence from the above table we can say that illiterate,
literate, Under SEE, SEE pass, Certificate level and above all are getting high benefit
from the microfinance program. 55 participating women were involved from higher
class, 29 from middle class and 17 from lower class. So that we can easily say that
microfinance program is able to convince lower class women too successfully. It
reveals that higher class women were getting high benefit from the program.
Main priority sector of women were education, health, fooding, saving. Out of 101
respondents 16 prefer education, 18 prefer health, 52 prefer fooding, 15 prefer saving
after improvement in their economic condition. In percentage, higher pc of women
prefers fooding i.e. 51.49% and lower pc of women prefer saving i.e. 14.85%.
There were different saving amounts in different headings. The overall saving from
different saving programs was Rs 1,66,62,518. The total saving of group saving was
Rs 15,031,411, centre fund saving was Rs. 879,609, and individual saving was Rs
751,498. Overall percentage in group saving was 90.21%, in centre fund saving was
5.28% and in individual saving was 4.51%. So there was greatest percentage of saving
in group saving. The total saving in last five fiscal years were Rs 2,658,305 in
2016/17, Rs 2,794,455 in 2017/18, Rs 3,556,002 in 2018/19, Rs 4,055,235 in 2018/19
and Rs 3,598,521 in 2019/20. There was greatest pc of saving in fiscal year 2017/18
which was 24.34% and smallest percentage of saving was in 2015/16 which was
15.95%. The greatest percentage and amount of group saving was in 2017/18, centre
fund saving was in 2019/20 and Individual saving was in 2016/17 which were 25%,
25.59%, 24.34% and Rs 3,758,378, Rs 225,126, Rs 194,892 respectively. The
smallest percentage and amount of group saving was 15.52% and Rs 2,332,575 in
fiscal year 2015/16, centre fund saving was 16.32% and Rs 143,512 in fiscal year
2015/16 and in individual saving was 12.70% and Rs 95,421 in fiscal year 2019/20.
It also shows the saving of sample women before and after involvement in programs
and percentage change in saving. 41 women were not saving regularly before
involvement in this programs but after the number is 32 with 8.91% decrease. There
were no women who are saving Rs 400 and more before involvement in programs but
after the number are 4 with 3.96% increase. The number of women falling in saving
amount class Rs 0 to 100, Rs 100 to 200, Rs 200 to 300, Rs 300 to 400 were 28, 18, 9,
42
5 and 29, 19, 10, 7, 4 were before and after respectively. Similarly the percentage
change in saving amount class Rs 0 to 100, Rs 100 to 200, Rs 200 to 300, Rs 300 to
400 were 1.00, 0.99. 0.99, and 1.77 percentages respectively.
34 women were not saving optionally before involvement in programs but after the
number was 27 with 6.92% decreased. The number of women falling in saving
amount class of Rs 0 to 100, Rs 100 to 200, Rs 200 to 300, Rs 300 to 400, Rs 400 and
more were 37, 14, 7, 6, 3 and 34, 18, 10, 7, 5 were before and after respectively.
Similarly the percentage change in saving amount interval class of Rs 0 to 100, Rs
100 to 200, Rs 200 to 300, Rs 300 to 400, Rs 400 and more were (2.98), 3.96, 2.97,
0.99, 4.90 percentage respectively.
Before entering the program, 27 women were saving from agriculture but after the
number reached to 29. Only 4 women were saving from bio gas before and after they
were 5. The sectors of women saving were taken from only microfinance activities.
Similarly the number of women saving from goat keeping, poultry farming and pig
keeping were reducing in number from 18, 14 and 7 to 16, 12 and 6 before and after
entering the programs respectively. There was 1.98% increase in women's saving
from agriculture and retail business both. Also there was no change in buffalo
keeping.
The survey shows the satisfactory result of recovery of women's lending amount after
entering into programs. Before involvement in this program, 69, 27 and 5 women's
lending money was recovered on time, beyond time and not refund respectively. But
after entering into programs 72, 25, and 4 women's lending money was not recovered
on time, beyond time, and not refund respectively. Similarly percentage increase in
recovery of money beyond time was 2.97% and decrease in recovery of money
beyond time and not refund was 1.98%, and 0.99% respectively.
The overall total interest expenses on different saving programs were Rs 478,628. The
total interest expenses on group saving was Rs 436,107, centre fund saving was Rs
25,761 and in individual saving was Rs 16,760. There was greatest interest expenses
on group saving. The total interest expenses on different saving programs in last five
fiscal years were Rs 86,162 in 2015/16, Rs 81,082 in 2016/17, Rs 96,464 in 2017/18,
Rs 1,13,667 in 2018/19 and Rs 101,253 in 2019/20. The overall greatest percent of
43
interest expenses was on fiscal year 2017/18. The greatest percentage of interest
expenses on group saving was 24.05%, on centre fund saving was 24.83% and on
individual saving was 24.65. The smallest percentage of interest expenses on group
saving was 16.85%, on centre fund saving was 16.86% and on individual saving was
14.98%.
There are three kinds of loan. They are micro business loan, micro enterprise loan 'ka'
and micro enterprise loan 'kha'. Micro enterprise loan 'ka' is distributed without
collateral but collateral is needed for micro enterprise loan 'kha'. The overall total loan
distribution in last five fiscal years was Rs 84,090,896. Out of this Rs 75,053,420 was
distributed in micro enterprise loan 'ka' and Rs 7,159,331 was distributed in micro
enterprise loan 'kha'. In fiscal years 2015/16 and 2016/17 there was no micro
enterprise loan 'kha'. The highest percentage of loan distribution in micro business
loan was 24.26% in fiscal year 2017/18 amounting Rs 18,208,810 in micro enterprise
loan 'ka' was 30.18% in 2017/18 amounting to Rs 566,875 and in micro enterprise
loan 'kha' was 35.66% in fiscal year 2017/18 amounting Rs 2,553,273. In overall the
highest percentage of loan distribution was 24.87% in fiscal year 2017/18 and
smallest percentage of loan distribution was 15% in fiscal year 2015/16 amounting Rs
20,911,853 and Rs 12,610,240 respectively.
The total loan recovery on last five fiscal year was Rs 81,164,290 and loan to be
outstanding was Rs 2,727,560. The highest amount and percentage of loan recovery
was in fiscal year 2017/18 amounting to Rs 20,105,853 and 24.77%. The smallest
percentage and amount of loan recovery was in fiscal year 2015/16 which is 16.06%
and Rs.13, 033,015. Whereas the highest pc of loan outstanding was in fiscal year
2017/18 which is 37.22% and Rs 1,015,245. The smallest pc of loan outstanding was
in fiscal year 2016/17 which was 6.21% and Rs 169,220.
The highest number of women ie 22 were investing amount between Rs 0 to 10,000

before entering into microfinance programs and 19 women were investing same
amount after involving in microfinance program. The lowest number of women ie 8
were investing amount between Rs 50,000 to 60,000 before entering into
microfinance programs and 7 women were investing same amount after entering in
microfinance programs. The number of women investing Rs 0 to 10000 was decrease
by 4.35% after involving in microfinance programs. But incase of investing amount of
44
Rs 10,000 to 20,000, Rs 30,000 to 40,000, Rs 40,000 to 50,000, there was increase in
percentage and number of women after involvement in this program. While there was
decrease in percentage and number of women investing amount of Rs 20,000 to
30,000 and Rs 50,000 and more. Out of 101 sample women there were 12 women
very poor, 63 women poor and 26 women rich. But no women were found who said
that they are very rich in sample survey. Similarly the percentage of women who were
very poor was 11.88%, poor was 62.38% and very poor was 25.74%. So the category
of women which were poor is higher.
Out of 101 sample women there were 12 women who prefer low interest rate, 18
women prefer more loan amount, 16 women prefer long repayment time and 55
women prefer all of above. Similarly the percentage of women who prefer low
interest rate was 11.88% more loan amount was 17.82%, long repayment time was
15.84% and all of above was 54.46%. So the women who prefer all the above
programs were more than fifty percent. Out of 101 sample women, 92 women have
intension of continuing their business in future also which was 91.10%. But 9 sample
women have no intention of continuing their business in future which was 8.90 %. So
this field survey shows that maximum number of women was interested to continue
their business in future also.
5.2 Conclusion
Microfinance is a practical model to microfinance program. The programs is aim to

raise socio-economic status of women, to empower them and uplift them from
vulnerable status to the prestigious entrepreneur and self-sufficient member of the
society. From the discussions of all reported data and information, a sharp conclusion
appears as following.
Microfinance of Royal Cooperative, Dulegaunda is a women participating

microfinance institution so it is organizing different fund rising programs such as
saving, loan disbursement etc. with in participating women. In the Microfinance
program saving and its mobilization and skill enhancement are the main instruments
to raise the economic growth and human resource development.
45
Saving is the basis of investment and loan disbursement. Microfinance is actively
involved in saving programs of women. Women are also interested and motivated to
save more with Microfinance programs. With saving they are encouraged to mobilize
that save in terms of loan. This will help to solve the financial problem of women in
society to some extent.
Loan disbursement and on time payment is an essential part of the program.

Microfinance can slowly meet the required criterion of loan repayment with
increasing trend in recovery and still the amount of outstanding remained to the
required criterion. Loan is disbursed in different sectors and Microfinance is still
focusing more on loan disbursement to poor women. Interest recovery from loan
investment is satisfactory and it is in increasing trend with certain fall. It shows that
women believe in loan and interested to invest that loan in profitable sector.
Majority of the women are involved in agriculture. The status of loan investment and
income of women is found satisfactory and they are earning slowly higher with
involvement of this program. Instead of this, business which is running by taking loan
is found as running satisfactory. Poor women are found more and some of them have
high confidentiality of standing themselves as a successful entrepreneur in future.
Majority of women believe that involvement in Microfinance program initiates to
increase their living standard.
Participants in Microfinance programs are from different ethnic groups. Some of

women prefer low interest rate, long repayment time, and more loan amount to
increase their living standard more. Women prefer more fooding program after
improving their economic condition.
The overall study shows that the program has made positive impact on the women
living standard by generating employment and increasing productivity. The most
important and effective program is to the basis to uplift the economic condition of
rural women. Most of the sampled women are under farmer's category and the major
source of income of women is agriculture.
46
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Annex –I Questionnaire Schedule
Dear Sir/Madam,
I am Vidya Bhujel student of sociology in Prithvi Narayan Campus, Tribhuvan
University. I am conducting a research on Role of Microfinance on Women
Empowerment (A Sociological Study of Royal Cooperative) which is a part of my
academic requirement. I shall submit this report to my college and declare that all the
information collected shall be highly confidential.
I cordially request you to provide your views on below mentioned questions.

Name:………………….
Caste/ Ethnic group: .…………
Religion: …………………..
Ward No: …………….. Occupation: ..……….
Education: ………………..
1. Please write your family structure by age, sex education and occupation .
S.N. Age Sex Education Occupation
1
2
3
4
5
6
2. How old are you?

a) 20-30
b) 30-40
c) 40-50
d) 50-60
e) above 60
50
3. Are you involved any saving and credit?
a) Yes b) No
If not, causes of not involvement ………………
3) Is there meeting regularly?
a) Yes b) No
4) Is there minuting of the meeting?
a) Yes b) No
5) Is there any types of conflict in the mass meeting?
a) Yes b) No
If there conflict, what is your role?
………………………………………………………………………..
6) What is the economic condition of the members?
a) Same
b) Normally different
c) More different
7) Do you regularly saving?
a) Yes b) No
If no what is the cause?
………………………………………………………………………..
8) Do you feel that you are doing better saving after involvement of saving and
credit?
a) Yes b) No
9) What types of saving programme you are involving?
a) Group saving b) Personal saving c) Regular Saving
10) How much do you saving per month?
a) Before involvement in group…………………………….
b) After the involvement in group…………………………………
11) What are the sources of saving?
Purpose Amount
Agriculture ………………..
Buffalo keeping ………………..
Goat keeping ………………..
Fish farming ………………..
Bee keeping ………………..
51
Poultry ………………..
Pig farming ………………..
Retail business ………………..
Bio gas ………………..
Industry ………………..
Other ………………..
12) Do you have taken loan from cooperative?
a) Yes b) No
13) How much time does you taken loan?
………………………………………………..
14) When do you return your loan?
…………………………………………………..
15) Do you return borrow?
a) Yes b) No
16) If taking loan, what is your purpose of taking loan?
Before Current
Purpose Amount After Amount
Agriculture ……………….. Agriculture………………..
Buffalo keeping ……………….. Buffalo keeping………………..
Goat keeping ……………….. Goat keeping ………………..
Fish farming ……………….. Fish farming ………………..
Bee keeping ……………….. Bee keeping ………………..
Poultry ……………….. Poultry ………………..
Pig farming ……………….. Pig farming………………..
Retail business ……………….. Retail business………………..
Bio gas ……………….. Bio gas ………………..
Industry……………….. Industry………………..
Other ……………….. Other ………………..
17) Do you invest the loan according to the purpose?
a) Yes b) No
18) Do you pay the loan at fixed time?
………………………………………..
52
19) Do you feel any difficulties to take loan? If yes specify.
…………………………………………………….
20) Have your entrepreneurship increasing which are running after taking loan?
a) Yes b) No
21 Do you feel difficulties to pay interest of loan?
a) If yes, what is the case …………… b) No
22) How much getting profit from your investment?
a) More b) Less c) No
23) Briefing of investment and return.
Investment Rs………………………………
Annual profit………………………………..
24) Do you continue your investment in future?
a) Yes b) No
25) Is there any economic improvement after involvement in cooperative?
a) Yes b) No
26) What is your propriety after the improvement in economic condition?
a) Education b) Health c) Food pattern
d) Saving e) Investment f) Others
27) How much do you have income before and after the involvement of the
cooperative?
a) Before (Appromaxitally) …………………………..
b) After (Appromaxitally) …………………………..
28) Do you satisfied with the performance of the institution?

29) How much do you confidence that you are established as an entrepreneurship?
30. Do you feel about the improvement in living standard?
a) Yes b) No
53
31. Your monthly expenditure Pattern
S.N Amount in Rs. esnopseR
2 0-10000
3 10000-20000
4 20000-30000
5 30000-40000
6 40000 & more
32. Your monthly saving Pattern
S.N Amount in Rs. esnopseR
2 0-10000
3 10000-20000
4 20000-30000
5 30000-40000
6 40000 & more
33. Do you have any intervention by your family members in control of saving?
a) Yes b) No
34. Do you satisfy with your saving?

a) Yes b) No
35. Do you satisfy with the interest of microfinance?

a) Yes b) No
36) What is your class?

a) Absolute poverty b) Poor
c) Rich d) Very rich
37) What should be done by microfinance for improvement poverty?
a) Low interest b) To provide more loan
c) Provide loan for long time d) Above all.
54
Annex –II Map of the Study Area
55
Annex –III Photos From the Field
56

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ROLE OF MICROFINANCE ON ECONOMIC EMPOWERMENT

OF WOMEN (A SOCIOLOGICAL STUDY OF WOMEN

A Thesis Submitted to Tribhuvan University, Faculty of Humanities

We hereby certify that the thesis entitled ROLE OF MICROFINANCE ON

Member of the Thesis Evaluation Committee:

There are several research works accomplished on women empowerment. However,

PRELIMINARY PART Page No.

CHAPTER II: REVIEW OF LITERATURE 6-17

CHAPTER III: RESEARCH METHODOLOGY 18- 21

CHAPTER IV: SOCIO DEMOGRAPHIC PROFILE OF

CHAPTER –V IMPACT OF MICROFINANCE IN

CHAPTER VI SUMMARY AND CONCLUSION 41-46

4.1 Response on the Education Level of Women 22

ADB : Asian Development Bank.

Role of Microfinance on Economic Empowerment of Women (A Sociological Study

All the co-operatives working with in Shuklagandaki Municipality, Tanahun was

Microfinance of Royal Cooperative, Dulegaunda is a women participating

Saving is the basis of investment and loan disbursement. Microfinance is actively

Loan disbursement and on time payment is an essential part of the program.

Participants in Microfinance programs are from different ethnic groups. Some of

1.1 Background of the Study

Women empowerment may be defined as the women or a group of women, who

Empowerment is the degree of autonomy and self-determination in people and in

1.2 Statement of the Problem

Different type of programs is lunching in women development in Nepal. Such as

1.3 Research Questions

1.4 Objectives of the Study

Microfinance allow women to take a greater role in household decision making, to

1.6 Limitation of the Study

Chapter II Literature Review

Chapter two has devoted to review of the literature

Chapter III Research Methodology

It deals with research methodology including research design and methods of

Chapter IV Socio- demographic Profile of Respondents

Chapter V Impact of Microfinance in Economic Empowerment of Women

Chapter VI Summary and Conclusion

Chapter six has included summary and conclusion of the study.

2.1 Conceptual Review

Nepal government designed a poverty alleviation program called small farmer

Figure 2.1: Micro Finance Sectors in Nepal

Government Initiated Model Semi formal Sector

Government German Bikas

Finance can be regard as effective tool in spreading economic opportunity and

Micro finance activities usually involve:

Although empowerment emerged as a socio-political process, the word‘s meaning

Women‘s empowerment see the process of empowerment in the interplay of agency,

Empowerment is a comprehensive process, and is not, therefore, something that can

At a workshop of pacific women entitled "Women Development and Empowerment"

Empowerment is instrumentally important for achieving positive development

2.1.2 Gender and Development (GAD)

2.1.3 Marxist Feminism

Marxist feminism is a species of feminist theory and politics that takes

2.2 Empirical Review

Microfinance, a poverty alleviation tool to mitigate the vulnerability of the people of

2.3 Conceptual Framework

Fig. 2.2: Conceptual Framework:

Independent Variables Dependent Variables

3.1 Research Design

3.2 Selection of Study Area

The study has conducted at Shuklagandaki Municipality-2, Tanahun. It is one of the