THE ROLE OF MICROFINANCE IN PROMOTING WOMEN'S ECONOMIC INDEPENDENCE IN KANCHANPUR DISTRICT OF NEPAL

Abstract [English]

Microfinance has become a vital tool for promoting economic empowerment and financial inclusion, particularly among women in underserved communities. This study investigates the role of microfinance in enhancing women's economic independence in the Kanchanpur district of Nepal. Using a descriptive research methodology, the study examines the extent to which access to microfinance services, including loans, savings, and skill development programs, impacts women's livelihoods, entrepreneurial activities, and decision-making capabilities. The research relies on both primary and secondary data sources to understand the socio-economic outcomes of microfinance initiatives. Through structured interviews, surveys, and focus group discussions with women beneficiaries, the study highlights how microfinance has enabled women to increase their income, improve household welfare, and contribute to community development. Additionally, secondary data from reports and case studies provides context regarding the operational practices and outreach of microfinance institutions in the district. Findings reveal that while microfinance has significantly improved women’s access to financial resources and entrepreneurial opportunities, challenges such as high-interest rates, limited financial literacy, and socio-cultural constraints persist. The study underscores the need for targeted capacity-building initiatives and supportive policies to maximize the benefits of microfinance programs. These insights are expected to guide stakeholders, including policymakers and microfinance practitioners, in enhancing the effectiveness of microfinance interventions in the region.