EFFECTIVENESS OF MICROCREDIT ON WOMEN EMPOWERMENT WITH SPECIAL REFERENCE TO REGIONAL DEVELOPMENT BANK IN KALUTARA DISTRICT

Abstract

Microfinance is a very popular subject among low-income people. The main purpose of microfinance is poverty alleviation of the poor people. Among them the women are very familier with microfinance. Microfinance can be defined as a financial instrument like insurance, loans, saving and other financial products. Among those services, microcredit takes a major part. In Sri Lanka, there are many microfinancial institutions and those are providing microcredit facilities for low-income people to enhance their life standard. Among those microfinance institutions in Sri Lanka Regional Development Bank plays a major role in providing microcredit. The Regional Development Bank aims to enhance living standards of poor people by providing credit facility with favorable and accessible way. Then consider past few year default rate of Regional Development Bank was increase in a considerable level. In the year 2019, it was 5%. Eventhough microcredit defult rate has shown a increasing trend, there is a doubt whether actually this microcredit effect on the women empowerment. Then researcher aimed to identify the effectiveness of microcredit on women empowerment with special reference to the Regional Development Bank in Kalutara district. This research is a qualitative research and the interviews were conducted to collect data for the present study. The researcher used the non probability sampling method and the sample size was 15 microcredit borrowers in Kalutara district those who get microcredit for start a new business with empowering purpose. The finding was significant to the women who are used microcredit for financially, socially and empowerment of family. Then the researcher has identified no significant effect for the default rate.