Impact of Micro-Credit Programs on Eliminating Economic Hardship of Women

Abstract

It is often argued that micro-credit program interventions at the grassroots level increase the ability of the poor to deal with crises. Economists argue that micro credit program does not always bring development in the life of the grassroots’ level people. Hence, policy makers view micro credits financed by the organizations are, most of the time, not allowed to the poorest (refunding problems). This paper examines the relationship between the Micro-Credit programs and elimination of economic hardship of women. Ten in-depth interviews and 50 self administrated questionnaires were distributed among the beneficiaries of BRAC in Eravur Pattu Divisional Secretariat Division in Batticaloa District in order to collect data. The study reveals that there is a strong positive relationship exists between Micro-Credit Programs and Elimination of Economic Hardship of women. That is, most of the women in Eravur Pattu involve in micro credit process in order to manage their economic hardship of the families and it resulted in improving the quality of life than existed earlier. Microcredit loans empower the poor to seek alternative ways to improve their life styles. The in-depth interviews support that the micro credit programs should be extended to male in order to develop their quality of life. In addition recommendation and suggestions are given to strengthen the micro credit programs and to extend this program to male.