State of Microfinance in J&K - KashmirCorps

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CONCLUSION Microfinance in the Kashmir Valley is a relatively new concept. The results of these efforts will not be apparent in the near future. However, the advantage of this late implementation are the lessons learned from microcredit programs in other areas. Recognizing that the Kashmir Valley is unique because of both geographical location and political instability, it is necessary to thoroughly plan execution of microcredit programs to meet local needs and conditions. While few financial institutions distribute microcredit loans within the Kashmir Valley, they operate in a complex manner, often overlapping each other in the services provided. To proceed with microcredit in this region, it is necessary to evaluate these existing programs to find a niche for further investment. The researchers tried to maximize their six weeks in Kashmir to comprehensively evaluate the different microcredit programs operating within the region. They found that most microcredit programs work through SHGs. Individual loans are rare and do not receive the same attention. These SHGs are effective because they usually focus on women and provided the means to develop a skill. Most SHGs are composed of widows from the current conflict or divorcees with no access to a source of income; the formation of SHGs greatly helped to empower these women. Looking forward, there are three major obstacles to microcredit in Kashmir: First, the absence of communication between different microcredit institutions operating with the region. A coordination effort between microcredit institutions and job skill organizations would result in much greater efficiency, widening the client base through greater outreach and achieving more in terms of both width and depth of programs. Presently, with such few microcredit operations in the Kashmir Valley, centralizing operations would draw more investors into this emerging market. Second, self-sustainment of SHGs will be a recurring issue. This is not something isolated to the Kashmir Valley; microfinance projects world-wide are also having difficulty shifting the burden of managing and running the SHGs from the outside institution which originally setup the group to members of the group. Third, the political climate is will make attracting investors a difficult task. Given the ongoing conflict and insecurity within the Kashmir Valley, outside investment has not arrived to the area. This is in sharp contrast to neighboring regions which have experienced a large flow of investment and attention. The political climate also impacts the economic landscape – there are frequent strikes, work stoppages, and even goods shortages when vital transportation links have been disrupted. This will be an ongoing challenge for any microfinance efforts within the Kashmir Valley. 16
Many women in Kashmir currently earn a modest wage removing weeds from the Dal Lake
Page 1 and 2: Jammu & Kashmir: An Analysis of Mic
Page 3 and 4: Our sincere thanks to the following
Page 5 and 6: “Microcredit is an idea whose tim
Page 7 and 8: Outline of the Report The following
Page 10 and 11: MICROCREDIT AT THE INSTITUTIONAL LE
Page 12 and 13: MICROCREDIT AT THE GRASSROOTS LEVEL
Page 14 and 15: Future Obstacles Anticipated 1. Sca
Page 18 and 19: APPENDIX I Interview Guide for Fina
Page 20 and 21: APPENDIX I (Continued) Microcredit
Page 22 and 23: APPENDIX I (Continued) Profitabilit
Page 24 and 25: APPENDIX II (Continued) Repayment S
Page 26: APPENDIX III (Continued) SHG Operat

State of Microfinance in J&K - KashmirCorps

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