A Critical Study of the Impact of Microfinance on the Living Standard of Women

Abstract

Through Micro Finance thrift, credit and other financial services and products of very small newlineamounts are provided to the poor in rural, semi urban or urban areas, for enabling them to raise their newlineincome levels and improve their standard of living. It is considered as the most potent tool of newlineeconomic development that aims at overall improvement in the quality of life of its users. newlineOf all the models of microfinance being practiced all over, the SHG- bank linkage model is the newlinemost popular in Rajasthan. Through SHGs, the women are not only encouraged to save money but newlinealso start entrepreneurial ventures and become self-dependent. The savings are pooled for internal newlinelending as well as it can be put in linked bank to get credit eventually in large amount. This has newlinereduced dependence on unorganized money lenders and lead to the empowerment of participants. newlineThis study was undertaken as a need was felt for a third-party evaluation to get a real picture of newlineits achievements. The study was conducted in two districts of Rajasthan namely Bikaner and newlineNagaur. Nine (9) agencies in Bikaner and ten (10) agencies in Nagaur were actively engaged in newlineforming and nurturing SHGs. A sample comprising of 400 women, 200 each from Bikaner and newlineNagaur were selected for study. The sampling method used for the study was purposive sampling. newlineA schedule was prepared and data was collected as per the objectives set. The data collected newlinewas then classified, tabulated and analyzed using SPSS which led to the findings. The statistical newlinetools used are percentage, standard deviation, correlation and regression. newlineIt was found that the young women have accepted microfinance as a tool of improving the newlinequality of their life and actively participating in it. Majority of the women were married. This is a newlineclear reflection of social norms prevalent in the state which still supports early marriage. Young newlinemarried women were found to be handling the financial responsibilities of the family through newlinegroups successfully. newline