ABSTRACT Micro financing hashelped a lot in the eradication of poverty over the time. Micro financing meansproviding financial services of small quantity provided by financial institutesto poor. Micro financing has been proved of great importance because if poorare provided access to financial services then they will be able to start amicroenterprise and earn their living. This improves their income levels and empowerspoor to great extent. This has improved the quality of life of millions of poorpeople.Micro financing hashelped in empowering women to great extent. Around seventy percent of poorpopulation is of women.
It has also given them a sense of independence and workfor the economic development and for the well-being of their family. Empowering women also contribute to economicgrowth and development of the country as a whole.Financial institutes alsobelieve that women are better and more reliable borrower INTRODUCTION Women are gifted with the power to create.
She is the one where beauty, power, responsibility and dignity. Although their contributionto the society has been indispensable and multidimensional throughout the ages,a lot of women and girls in India are still becoming victim of discrimination,poverty, insecurity and other fundamental violations to their human rights inthis patriarchal system of power and decision-making. Empowerment implies expansion of assets andcapabilities of people to influence control and hold accountable institutionthat affects their lives (World Bank Resource Book).It is the state of feelingsof self-empowered to take control of one’s own destiny. It includes bothcontrols over resources (Physical, Human, Intellectual and Financial) and overideology (Belief, values and attitudes).
Empowerment is a process by whichpeople can gain control over their own life and the society by responding toissues they define as important. Accordingto the Microcredit Summit Campaign 2001 Report, 14.2million of the world’s poorestwomen now have access to various financial services through microfinanceinstitutions (MFIs), banks, NGOs, and other nonbank financialinstitutions. Thesewomen are almost 74 percent of the 19.3 million of the world’s poorest peoplewho are using micro finance.
Most of these women have access to various MFIsand Self Help Groups to invest in the business that they own.According toresearch women have excellent repayment records too. Conflicting to our wisdomwomen have shown that it is avery good idea to lend to the poor and towomen.Although women’s access to financial services has increased substantiallyin thepast years, their ability to benefit from this is still limited due tothe gender bias that still prevails.
Microfinance programs have the potential totransform andempower the poor, both men and women. As a result, microfinancehas become an integral part of manydonor agencies. OBJECTIVES 1. To study the level of awareness about microfinance in Mumbai2. To study the effect of microfinance in the lives of women.3. To review the origin and development of Self Help Groups (SHG’s) LITERATURE REVIEW (SibghatullahNasir and Saleem Akhtar Farooqi, 2016)Participation and contribution of womenin the society is a very important for the development of society.
There hasbeen an increase in the number of women entrepreneur in India since 1990. Inmany other countries including India, credit was found to be the majorconstraint to the growth of the woman both economically and socially. Sincethen the woman in need are provided with micro finance through SHGs in thosecountries. Women when given an opportunity of decision making regarding thecreditors and the savings, they can optimize the welfare of both, the countryof their country. Providing financial support will help them to contribute tothe income of their family and also participate in the decision making. SelfHelp Groups have played a major role in providing the loans. (TiyasBiswas) The author has put forward how micro finance has received extensiverecognition as a strategy for economic empowerment of women. The paper seeks toexamine the impact of Micro finance with respect to poverty alleviation andsocioeconomic empowerment of rural women.
Aconclusion that emerges from this paper is that micro finance can contribute tosolving the problems of inadequate housing and urban services as an integralpart of poverty alleviation programs. The challenge is in finding the level offlexibility in the financial services that could make it match the variousrequirements of the low income borrower without imposing an unbearably highcost of interests. (Dr.Soochi Loomba) In India, Microfinance scene is dominated by Self Help Group(SHGs) as an effective mechanism for providing financial services to the poor andalso in strengthening their collective self help capacities leading to theirempowerment. Rapid progress in SHG formation has now turned into an empowermentdrive among women across the country. Micro finance is necessary to overcome variousproblems that women face in the society.Themajor findings in this paper suggest that microfinance has animmense influenceon the economic status and decision making of women participants of SHGsinGhaziabad.
Reaching poor people on a huge scale with financial products on a regularbasis involves rethinking the basic assumptions and making the changes. Todaymicrofinance is striving to match the convenience and flexibility of informalsector while adding flexibility and continuity. (M.
Pitt, S. Khandker, J. Cartwright,2006)India has been developing but not always equitably, development model of India is a work in progress andthere are some serious challenges which are need to be tackled if we want toemerge fast as a strong nation. One of the major issues we are facing is WomenEmpowerment, women are the marginalized member of Indian society and theirempowerment is the need of the hour. Keeping this in mind, governmental andNon-governmental organizations of the country are focusing on providingMicro-finance to women of low income group, many micro finance and micro creditsupport programs have observed improvement in women’s status in theircommunity. This will not only help in developing their standard of living, butalso of their families and society as a whole, this in long run will also helpin removing problem like gender inequality, poverty and will increase economicgrowth, because when we empower women, we empower nation.
(A. Pokhriyal, R. Rani, J. Uniyal,2014) About 70% of world’s poor are women. Yet they have no access to creditand other financial services. Micro finance is generally related to issues suchas poverty alleviation, gender development, etc. It’s a means of providing credits to poor ofurban, semi-urban and rural areas so as to increase their living standards.Dimensions of micro finance are:· Savings· Absence of subsidies· Thrift· Groups helping in credit appraisal· Self help groups· Grameen Groups Poverty doesn’t only mean scarcitybut it also means voices being suppressed, rights being denied.
Thus, Womenempowerment should be multi dimensional including economic, socio-culture,political, interpersonal, psychological, etc.Women spend most of their incomeon fulfilling their family’s needs thus, along with financial resources accessto material and social resources should also be provided.Micro finance strengthens womeneconomy and allows them to perform non-traditional activities which in turnhave a great impact on political empowerment and women’s right.Women can be successfulentrepreneurs if they are provided with the required environment, resources andamount of capital. (Modi, Patel J and Pate M ,2014 ) found in their research paper thatthe women empowerment through microfinance leads to social and economic upgradation of people. This also provides financial freedom to women and theirfamily.
Providing microfinance also provides them autonomy for their lifechoices and improves their position in their family and society. When it comesto positive approach towards child development through microfinance, nopositive correlation has been found. (Kashinath S, and Kale B) in their research paper has found that SHGleads to saving contribution among its members and therefore internal loans areprovided to its members on the basis of their contribution .
It has successfullyfulfilled the loan need of many families .SHG’s also develops the personalityof women by making them confident and providing them a better position in thesociety. SHGs have a positive influence on the standard of living of women aswell. SHGs also lead to entrepreneurship development among women by providingthem loan. Not only economic development but SHGs have been useful in marketingand leads to active participation in social welfare campaigns. RESEARCH METHODOLOGY The data source in this paper is secondary.
We have followed the exploratory research style. Exploratory research includes secondaryresearch, formal qualitative and informal qualitative approaches. We will be studying secondarysurvey to know the level of awareness of micro finance and also to find out theviews about micro finance. We will be using secondary questionnaire as aresearch instrument.
Research territory is Mumbai.