This is a PPT of microfinance and it's role in women empowerment

1. DOCTORAL SEMINAR
ON
MICRO- FINANCE AND ITS ROLE IN WOMEN
EMPOWERMENT
Presented by
Sarita Ghidode
Ph.D. (AG) ABM
Presented to
Dr. A.K. Gauraha
Dr. S.K. Joshi
Department of Agri-business and Rural Management

2. NTRODUCTION
Microfinance is a source of finance to the
poor segments of society. It includes
loans, savings, credit, insurance services,
money transfer and other basic financial
services to the economically weaker
section of society.
Micro finance institutions
include N.G.Os, Credit Unions,
N.B.F.Cs. Cooperatives and
banks. In India, the future of
microfinance is largely
depending upon the self-help
groups (S.H.G.)
It is considered as an effective tool for
eliminating poverty in India. It provides
credit and other financial services of
small amount to the economically
disadvantaged segment of society in
urban as well as rural areas.

3. 1 To understand the concept of micro-finance
2 To know the role of micro-finance in women empowerment
3 To offer suggestion for betterment of women’s empowerment
through microfinance.
4 To review the research studies related to micro-finance
Objectives of Seminar

4. •In India around 21.9 per cent population living below the
poverty line.
•About 53.9 percent of the poorest households do not have
access to credit.
•Only 15% access loan from the formal sources
Source: Indiastat, 2022
Need of micro-finance in India

5. Current status of microfinance in India
• Total number of SHGs saving linked with banks - 47240.48
• Total number of SHGs credit linked - 99729.22
• Total number of SHGs having loans outstanding - 151051.30
• Average loan amount outstanding/SHG (in R) - 2.24
• 800 MFIs are working in India
• Average loan amount disbursed/SHG - 2.93
Current Status of micro-finance in India Source: Status of Micro-finance in
India- 2022, NABARD

6. Figure : Microcredit portfolio (Rs Cr)
Source: Equifax, data from Mar-19 onwards based on portfolio originated after Feb-
17

7. 1. CONCEPT OF MICRO-FINANCE
Activities of Micro-Finance
Micro-finance involves the activities like
1. Small loan for working capital,
2. Collateral securities such as group guarantees or compulsory savings,
3. Access to repeat and larger loans based on repayment performance,
4. Streamline loan disbursements and monitoring
5. Secure savings.
Rao and Sharma (2006)

8. •Self Help Group- Bank linkage model
• Micro-finance Institution Model (MFI)
• Grameen Model
• Individual Lending
Microfinance Models in India
> 97 per cent of
Microfinance
business

9. •It is the dominant microfinance
methodology in India.
•Started as a pilot project in 1992 by
NABARD.
•SHGs were linked to banks.
THE SELF HELP GROUP-BANK LINKAGE MODEL

10. WORKING OF SHG- BANK LINKAGE MODEL

11. TYPES OF SHG-BANK LINKAGE MODEL
Model Type
I Banks forms SHGs and finance them
II I NGOs forms SHGs and banks finance them
III NGOs and other agencies, as financing
intermediaries between banks and SHGs

12. Micro-finance Institutions (MFls)
•MFIs include NGOs, trusts, NBFCs,
•These lend small sized loans to individuals or SHGs.
•They also provide other services like capacity building, training,
marketing of products etc.
•Example
– Bhartiya Samruddhi Investments and Consulting Services Ltd.
(BASICS Ltd) in Hyderabad
MICRO-FINANCE INSTITUTIONS MODEL (MFI)

13. WORKING OF MFI MODEL

14. •Insufficient loan amount
•High interest rate (12 to 36% p.a. )
•Low recovery of loans
•Regional Imbalances in formation of SHGs
•High level of illiteracy and lack of organizational experience
of most members is a constraint for most SHG members in
performing this role (Risk management, repayment
monitoring, financial management, accountability etc.)
PROBLEMS IN MICROFINANCE

15. 2. ROLE OF MICRO-FINANCE IN WOMEN
EMPOWERMENT
The role of Micro-finance contributing for women’s empowerment
includes
• Economic empowerment
• Social empowerment:
• Education, skill and training empowerment:
• Political empowerment:

16. Micro-finance in economic empowerment
• Enhances the women’s contribution to the household’s income
as a result of credit access.
• Helps in employment generation,
• Helps in understanding the bank transactions.
• Improves women’s access and control over the resources.

17. Micro-finance in social empowerment
Roles include,
• Micro-finance helps women to gain confidence,
• Helps to gain respect in the family,
• Increase the role of women in household decision making,
• Improves the ability of women to freely interact with members of
the group and outsiders and
• Increase mobility of women within and outside their locality.

18. • The success of MFIs in India is a big challenge for all concerns like
Government, NGOs, SHGs, borrowers etc.
• Government should come forward in a manner to provide quick delivery of
microfinance to the poorer and needed people.
• Government should formulate acts as per requirement of different
stakeholders of Microfinance.
• Microfinance must be provided as per the needs of small entrepreneurs.
• The quality of SHGs is a major factor for the success of Micro finance
programme Government should check the group quality and of financial
sustainability of MFIs.
• The microfinance services should be reached to poor people of all areas for
balanced growth.
• It is essential to engage this section of society in the economic mainstream
to achieve balanced growth which is critical for the long term sustainability
of social development and economic prosperity.
4 Suggestion for betterment of women’s empowerment
through microfinance.

19. 5. RESEARCH STUDIES RELATED TO MICRO-FINANCE

20. Research Study 1.
Title of the study:
Role of Micro-finance in women’s empowerment
(A study in Pondicherry region rural SHGs)
Authors:
Sarumathi, S, and Mohan, K.
Year:
2011

21. • Locale of the study- Rural areas of Pondicherry region
• Selection of SHG- Six SHGs promoted by NGO were
selected
• Selection of respondents-181 SHG women members
Members who are engaged in micro enterprises through
microfinance were selected for the study
METHODOLOGY

22. Table 1. Perception of members about reduction in
poverty level due to micro finance
Findings
Category Number Percentage
To greater extent 167 92.26
To some extent 14 07.74
To lower extent 0 0.00
Total 181 100
(n=181)

23. Table 1: Social empowerment of women members
FINDINGS

24. Table 3: Cross tabulation of psychological variables with
different age groups
Findings

25. Research Study 2.
Title of the study:
“ROLE OF MICROFINANCE IN WOMEN EMPOWERMENT
IN INDIA”
Authors:
Dr. Shuchi Loomba
Year:
2011

26. Area of Sampling: The study was conducted in the district of
Ghaziabad
Sample Size: 50 samples from 3 SHGs
Statistical tools: Simple correlation coefficient, paired t-test,
cross tabulation and percentage analysis are used for the
analysis of the data.
Research Methodology

27. Data Analysis and Findings

30. Paired t-test
Hypothesis: H0= There is no difference in mean income of respondents
before and after joining SHG.

31. CONCLUSION
CONCLUSION Micro-finance has been proved to be an
important tool in the development process empowering the
rural poor women educationally, socio-economically and
politically. Impact of micro-finance is appreciable in bringing
confidence, courage, skill development and empowerment
among rural poor women.