Role of self help group and micro finance institutions in women empowerment with special reference to dewas district

Abstract

Self Help Groups and Micro Finance Institutions are emerging as powerful tool to empower women. There are many poor women who are away from financial services and find it difficult to manage their financial status. Based on the literature presented in different published sources, there have been studies which focused on Micro Finance Institutions (MFIs), the way they have been working towards the development of the economy, current status of MFIs in India and many other aspects have been covered in the previous research work. This study is mainly focused on women in Dewas district who are currently below poverty line and even struggling for their survival. Some of them have formed group and applied for availing loan facility. They have initiated a business on a small scale. It becomes difficult for them to arrange finance easily from the banks or any other financial institutions. Hence, they try to apply for loan from a local lender and the main drawback which they face is that of higher interest rate. The females who have started operating their own business are not much educated and this leads to facing of various issues. The poor women are not much literate and hence they find it quite difficult to start their own business and arrange funds for the same. Maximum women who are spread in Madhya Pradesh and in different blocks in Dewas District are below poverty line category, these women are not much educated. A small portion of them are having economic assets of their own. They find it quite difficult to generate income by starting business on a small scale. They do not find it easy to avail loan from any bank for any loan of their choice. In case they approach the local vendor providing loan, the interest rate on which amount is being provided is very high and this would rather discourage them to avail such a loan facility. They need support from the government or from NGOs or MFI who could provide them with funds as required. The poor women whenever need funds, they get connected with the local people providi