Abstract:
The objective of this study was to investigate the role of microfinance services in improving
the socio-economic status and living standard of women in the study area. The study adopted
mixed research approach to answer research objectives and both probability and non probability sampling techniques were employed. Women clients of VFMFI were the major
target population of the study and the study institution was selected purposively. The
researcher selected 210 samples from 441 women clients of VFMFI by simple random
sampling. The researcher used both primary and secondary data sources. Primary data were
collected through questionnaire and interview while secondary data were collected from
different published and unpublished documents. Descriptive statistics such as percentage,
frequency, and tables were used to make analysis. Inferential statistics like binary logistic
regression model was also used to test the significant level of variables under this study. The
SPSS software, version 20 was used for the data processing. The qualitative data collected
through interview was analyzed thematically. The finding of this study showed that VFMFI
has improved the life styles of the poor section of the people. They argue that it has enhanced
economic development directly and indirectly and improved happiness in the household.
VFMFI plays a significant role in contributing to poverty reduction by providing loans and
mobilizing savings. It is also creating job opportunity for the unemployed section of the
society through offering well-organized financial services. It is also encouraging and
prioritizing different economic sectors like agricultural and trading sector. Moreover, it
increases social position of women and decision making power at household and community
levels. Based on the finding of the study, the researcher suggested some recommendations to
progress the role of microfinance in improving the socio-economic status of women in the
study area. The institution should increase on the amount given as loan to the clients and
assess repayment capabilities before loan provision, it should trained the clients thoroughly
before undertaking credit facilities and after credit to avoid money mishandling, it should
also work together with the local government technical and extension workers to monitor and
supervise their clients in the areas where they operate.
