Impact of Micro Finance on Empowerment of Women: A case study of Himachal Pradesh

Abstract

The terms ‘empowerment’ and ‘microfinance’ (or microcredit) have become common household words in recent years. Empowerment is defined as the process by which women take control and ownership of their lives through expansion of their choices. Thus, it is the process of acquiring the ability to make strategic life choices in a context where this ability has previously been denied. Micro finance is defined as provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban and urban areas so as to enable them to raise their income levels and improve their living standard. One form of micro credit, popular in India, is given through the self help groups promoted by national and state governments and NGOs. SHGs are formed as micro-credit networks for promoting the socio-economic betterment of women as well as their capacity building. SHGs bring out the supremacy of women in moulding the community in the right perspective and explore the initiative of women taking up entrepreneurial ventures. The participation of poor women in SHGs has not only enabled women to meet their credit needs, but also resulted in general awareness, capacity building, self-confidence and courage which can be translated into empowerment. In this paper an attempt has been made to explore the relationship between microfinance and women empowerment.

Keywords: women empowerment, microfinance, SHGs, impact