Role of Micro Finance in Women Empowerment

Abstract

Micro finance programmes are promoted as an important strategy for women's empowerment. Micro finance builds mutual trust and confidence between bankers and rural poor to encourage banking in a segment of population where formal financial institutions usually find difficult to reach. Microfinance is emerging as a powerful instrument for poverty alleviation in the new economy. In India, Microfinance scene is dominated by Self Help Group, Commercial Bank Linkage Programme as an effective mechanism for providing financial services to women. This has been successful not only in meeting financial needs of women but also strengthen collective self-help capacities of women, leading to their empowerment. Economic empowerment results in women’s ability to influence or make decision, increased self-confidence, better status and role in household etc. This paper attempts to place forward how micro finance has received extensive recognition as a strategy for economic empowerment of women.