CONTRIBUTION OF NIRDHAN UTTHAN MICROFINANCE INSTITUTION TO SAVING MOBILIZATION AND MANAGEMENT AT MICROENTERPRISES: A CASE STUDY OF RAMKOT BRANCH IN KATHMANDU OF NEPAL

Abstract

The objectives of this study were to assess the contribution of Nirdhan Utthan Microfinance Institution, Ramkot branch in Kathmandu on saving mobilization and investment in different types of businesses or enterprises and to determine the roles of the microfinance to the economic status of its borrowers and entrepreneurs. The study applied both quantitative and qualitative data using a descriptive research design and case study method. It has employed both primary and secondary sources of data. Thematic analysis was used for primary data. Secondary data was analyzed using simple statistical tools such as tabulation and percentage. The finding has shown that microfinance has been successful to mobilize and manage saving in different business and economic sectors such as agriculture and forestry, cottage industries, services, trading, social and consumption, and other sectors. The finding of the study has also indicated that about 98.70 percent of the borrowers were successful to receive a collateral-free loan from microfinance. Likewise, the analysis reveals that microfinance has been successful to motivate household members to deposit in different saving accounts such as Personal Savings, Central Fund savings, Sambridhi Savings, and Nari savings and to create entrepreneurs. The study has found that microfinance was an important tool to improve the economic status of borrowers and entrepreneurs. Nirdhan Utthan Microfinance Institution should increase its number of borrowers and entrepreneurs and try to collect savings and mobilize them efficiently and effectively to enhance the economic status of the borrowers and stakeholders.