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Micro-finance for poor and non-poor communities of Nepal

The micro-finance institutions are providing service to the people with the noble purpose to improve their socio-economic status which ultimately helps to reduce the poverty Nepal. In the Nepalese context, micro-finance institutions are providing the equal services to all people living in the remote and rural areas. The main objective of this study was to identify the economic importance of micro-finance institutions for poor and non-poor communities of Nepal. The study was conducted in Syangja district among the 385 beneficiaries of micro-finance. This study found that there was no significant association between the poor and non-poor people regarding the success of small scale business with the support of micro-finance, and increasing the amount of saving because p = .524 and .402 respectively which was greater than .05 significant levels. The difference could be observed in the increase in income level of poor and non-poor. Slight better improvement could be seen among the poor people, there was significant association between poor and non-poor because of p = .019. | MICRO-FINANCE FOR POOR AND NON-POOR COMMUNITIES OF NEPAL Chandra Prasad Dhakal ABSTRACT The micro-finance institutions are providing service to the people with the noble purpose to improve their socio-economic status which ultimately helps to reduce the poverty Nepal. In the Nepalese context micro-finance institutions are providing the equal services to all people living in the remote and rural areas. The main objective of this study was to identify the economic importance of micro-finance institutions for poor and non-poor communities of Nepal. The study was conducted in Syangja district among the 385 beneficiaries of micro-finance. This study found that there was no significant association between the poor and non-poor people regarding the success of small scale business with the support of micro-finance and increasing the amount of saving because p .524 and .402 respectively which was greater than .05 significant levels. The difference could be observed in the increase in income level of poor and non-poor. Slight better improvement could be seen among the poor people there was significant association between poor and non-poor because of p .019. Keywords Economic importance micro-finance Nepal poor INTRODUCTION AND OBJECTIVE Agriculture is the backbone of developing countries of the world and this segment has an enormous potential to support the agricultural growth and economic advance and can reduce poverty Zeller 2003 . Nepal is an agricultural country because of 1362908.2 hector of land being suitable for paddy production 745823.164 hector land is suitable for wheat production 891583 hector land is suitable for maize 266799 hector land is suitable for millet 28361 hector land is suitable for Barley CBS 2016 . In this context development activities focusing on the poverty reduction were started in 1994 under the auspices of the South Asia Poverty Alleviation Program SAPAP of the UNDP received millions of dollars of international investment and has become a .