ABSTRACT

Women’s access to credit is generally believed to result in their economic empowerment. As a result, the provision of microfinance to women has been called for by various international and national organizations in light of their productive role for economic development and women’s rights. The impact of microfinance on income has been observed to be variable. It appears that, for the majority of borrowers’ income increases are small and even in some cases negative. This is due to the fact that most of the women invest in existing activities with low profit and insecure. In addition, women’s choices and ability to increase income is constrained by gender inequalities in access to other resources for investment in household responsibility and lack of mobility.

The access to microfinance, by and large, has a positive economic impact. The impact becomes larger for those closer to the poverty line and it also increases with the duration of membership or intensity of loans as members begin to invest in assets rather than consumption. Microfinance delivery in various parts of the world has improved the economic position of households, enhancing the asset base and diversification in to higher return occupations among members.

The status of the women is connected with their economic position, or status which depends on their participation in economic activities such as ability to access credit, role in decision making in financial matters etc.

Key words: Micro Finance, Women’s Empowerment, economic empowerment