Economic Impact of Bank Credit on Women Empowerment

Abstract

The present paper is an attempt to examine the impact of micro credit on economic empowerment of respondents in the study area of Tirunelveli district.The research is based on primary and secondary data both. Secondary data was taken from research papers, journals, magazines and websites. For data analysis, percentage analysis, tabulation, averages, standard deviation, Garret ranking method, t-test, and multiple regression analysistools are used. The field survey was conducted by personal interview method during the period from August 2017 to November 2017.The study inferred that rural woman used micro level loans for starting small business units in their living area apart from petty shops, idly shops, tailoring, fish vending, dairy, animal husbandry, etc. It helps them to improve socially and economically in the society.It is found that majority of the respondents revealed for nature of using of microfinanceas family expenseswas ranked first followed by repayment of old loan. Establishment of self-employmentwas ranked third, education expensesranked fourth and medical expenseswas ranked fifth respectively.In the case of women bank credit borrowers, the coefficient of multiple regressions (R²) was 0.681 indicating 68.1percent variation intotal income. The regression coefficient of variables namely earnings of women bank credit borrowersand their spouse's earnings were statistically significant at 5 percent level. One unit increase in these variables could increase the total family income by 0.136 percent and 0.031 percent respectively. Thus it may be concluded from the analysis that the contribution of women bank credit borrowerstowards family income is found high in the study area.Microcredit is playing a noteworthy role in easing poverty and rural development. Since women are the only family caretaker, appropriate importance should be given to the rural women and for empowering the rural women finance is essential. The study has proved that microcredit has reduced the incidence of poverty through an upsurge in income, advances the living standards, and empowered women by enhancing their involvement to household income, increasing the value of their assets and economic independence of the rural women.