ABSTRACT also believe that women are better and

ABSTRACT

 

 

Micro financing has
helped a lot in the eradication of poverty over the time. Micro financing means
providing financial services of small quantity provided by financial institutes
to poor. Micro financing has been proved of great importance because if poor
are provided access to financial services then they will be able to start a
microenterprise and earn their living. This improves their income levels and empowers
poor to great extent. This has improved the quality of life of millions of poor
people.

Micro financing has
helped in empowering women to great extent. Around seventy percent of poor
population is of women. It has also given them a sense of independence and work
for the economic development and for the well-being of their family.  Empowering women also contribute to economic
growth and development of the country as a whole.

Financial institutes also
believe 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 contribution
to 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 in
this patriarchal system of power and decision-making.

                                                           

Empowerment implies expansion of assets and
capabilities of people to influence control and hold accountable institution
that affects their lives (World Bank Resource Book).It is the state of feelings
of self-empowered to take control of one’s own destiny. It includes both
controls over resources (Physical, Human, Intellectual and Financial) and over
ideology (Belief, values and attitudes).Empowerment is a process by which
people can gain control over their own life and the society by responding to
issues they define as important.

 

According
to the Microcredit Summit Campaign 2001 Report, 14.2million of the world’s poorest
women now have access to various financial services through microfinance
institutions (MFIs), banks, NGOs, and other nonbank financialinstitutions. These
women are almost 74 percent of the 19.3 million of the world’s poorest people
who are using micro finance. Most of these women have access to various MFIs
and Self Help Groups to invest in the business that they own.According to
research women have excellent repayment records too. Conflicting to our wisdom
women have shown that it is avery good idea to lend to the poor and to
women.Although women’s access to financial services has increased substantially
in thepast years, their ability to benefit from this is still limited due to
the gender bias that still prevails.Microfinance programs have the potential to
transform andempower the poor, both men and women. As a result, microfinance
has become an integral part of manydonor agencies.

 

 

OBJECTIVES

 

1.     
To study the level of awareness about microfinance in Mumbai

2.     
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

 

(Sibghatullah
Nasir and Saleem Akhtar Farooqi, 2016)Participation and contribution of women
in the society is a very important for the development of society. There has
been an increase in the number of women entrepreneur in India since 1990. In
many other countries including India, credit was found to be the major
constraint to the growth of the woman both economically and socially. Since
then the woman in need are provided with micro finance through SHGs in those
countries. Women when given an opportunity of decision making regarding the
creditors and the savings, they can optimize the welfare of both, the country
of their country. Providing financial support will help them to contribute to
the income of their family and also participate in the decision making. Self
Help Groups have played a major role in providing the loans.

 

 

(Tiyas
Biswas) The author has put forward how micro finance has received extensive
recognition as a strategy for economic empowerment of women. The paper seeks to
examine the impact of Micro finance with respect to poverty alleviation and
socioeconomic empowerment of rural women. 

A
conclusion that emerges from this paper is that micro finance can contribute to
solving the problems of inadequate housing and urban services as an integral
part of poverty alleviation programs. The challenge is in finding the level of
flexibility in the financial services that could make it match the various
requirements of the low income borrower without imposing an unbearably high
cost 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 and
also in strengthening their collective self help capacities leading to their
empowerment. Rapid progress in SHG formation has now turned into an empowerment
drive among women across the country. Micro finance is necessary to overcome various
problems that women face in the society.

The
major findings in this paper suggest that microfinance has animmense influence
on the economic status and decision making of women participants of SHGsin
Ghaziabad. Reaching poor people on a huge scale with financial products on a regular
basis involves rethinking the basic assumptions and making the changes. Today
microfinance is striving to match the convenience and flexibility of informal
sector 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 and
there are some serious challenges which are need to be tackled if we want to
emerge fast as a strong nation. One of the major issues we are facing is Women
Empowerment, women are the marginalized member of Indian society and their
empowerment is the need of the hour. Keeping this in mind, governmental and
Non-governmental organizations of the country are focusing on providing
Micro-finance to women of low income group, many micro finance and micro credit
support programs have observed improvement in women’s status in their
community. This will not only help in developing their standard of living, but
also of their families and society as a whole, this in long run will also help
in removing problem like gender inequality, poverty and will increase economic
growth, 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 credit
and other financial services. Micro finance is generally related to issues such
as poverty alleviation, gender development, etc.  It’s a means of providing credits to poor of
urban, 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 scarcity
but it also means voices being suppressed, rights being denied. Thus, Women
empowerment should be multi dimensional including economic, socio-culture,
political, interpersonal, psychological, etc.

Women spend most of their income
on fulfilling their family’s needs thus, along with financial resources access
to material and social resources should also be provided.

Micro finance strengthens women
economy and allows them to perform non-traditional activities which in turn
have a great impact on political empowerment and women’s right.

Women can be successful
entrepreneurs if they are provided with the required environment, resources and
amount of capital.

 

(Modi, Patel J and Pate M ,2014 ) found in their research paper that
the women empowerment through microfinance leads to social and economic up
gradation of people. This also provides financial freedom to women and their
family. Providing microfinance also provides them autonomy for their life
choices and improves their position in their family and society. When it comes
to positive approach towards child development through microfinance, no
positive correlation has been found.

 

(Kashinath S, and Kale B) in their research paper has found that SHG
leads to saving contribution among its members and therefore internal loans are
provided to its members on the basis of their contribution .It has successfully
fulfilled the loan need of many families .SHG’s also develops the personality
of women by making them confident and providing them a better position in the
society. SHGs have a positive influence on the standard of living of women as
well. SHGs also lead to entrepreneurship development among women by providing
them loan. Not only economic development but SHGs have been useful in marketing
and 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 secondary
research, formal qualitative and informal qualitative approaches.

 

 We will be studying secondary
survey to know the level of awareness of micro finance and also to find out the
views about micro finance. We will be using secondary questionnaire as a
research instrument. Research territory is Mumbai.

 

CONCLUSION

 

Micro finance contributes in
eradication of
poverty and uplifting the status of women. It helps in psychological, social
empowerment along with economic empowerment. SHGs play an important role in
improving a women’s economic condition by providing them small credits,
improving their skill sets, training and allowing them to perform other
traditional activities.