MICRO CREDIT FACILITIES. Presented by:- Prachi Sharma Priyanka Rai MBA(HR)

Before 1990's, credit schemes for rural women were almost negligible. The concept of women's credit was born on the insistence by women oriented studies that highlighted the discrimination and struggle of women in having access to credit. However, there is a perceptible gap in financing genuine credit needs of the poor especially women in the rural sector. The Micro Credit Scheme (MCS) was formulated and put into operation in March 1994.

Microcredit programmes extend small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and their families. Microcredit is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. It has proven an effective and popular measure in the ongoing struggle against poverty, enabling those without access to lending institutions to borrow at bank rates, and start small business.

Why Women? Women reinvest 90% of their income in their families and communities, compared with men who reinvest only 30% to 40% (World Bank). Women are also more likely to use their profits to help the poor and are more likely to hire other women to work for them. If that were not convincing enough, Grameen Bank reports that women are highly more likely to repay their loans than men.

Microcredit an Women‘s Empowerment:- The microcredit programmes mobilize and organize women at the grassroots levels and provide access to supportive services. Targeted credit can be used as a mechanism for enhancing poorer women's existing socio- economic conditions and thereby altering the relations between gender and class, to the benefit of the weaker parties.

Microcredit help poor women in three ways:- First, by providing independent sources of income outside home, microcredit tends to reduce economic dependency of the women on husbands and thus help enhance autonomy. Second, the same independent sources of income together with their exposure to new sets of ideas, values and social support should make these women more assertive of their rights.

And finally, micro credit programmes - by providing control over material resources raise women's prestige and status in the eyes of husbands and thereby promote intersperse consultation. The government have a large network of credit programme for the rural poor women to increase their economic solvency and enhance their empowerment.

Objectives of Women’s Credit Facilities:- Promoting the development of women’s micro enterprises. Training women on entrepreneurship. Fund raising in support of women enterprises. Marketing women’s businesses and products.

Facilitating gender equity and access to resources by women. Supporting development efforts of women living around wildlife conservation areas. Fostering linkages and liaison with other women development groups.

CONSTRAINTS:- Lack of support from male members (of the families) as well as banks. Large magnitude of the target group of poor people. Difficulty in creating awareness among people. Limited resources with the NGOs. Limited number of experienced intervention agencies. Diversities of situations due to wide coverage

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