A Study on Microfinance and its Role in Women Empowerment

Dr. S. Archana 1, T. Aravind 2, R. Ashika 3, C. Athira 4, Ashwath harish 5
1Assistant Professor, Department of Corporate Secretaryship, PSG College of Arts & Science, Coimbatore641014
2III B.Com (CS), Department of Corporate Secretaryship, PSG College of Arts & Science, Coimbatore641014
3III B.Com (CS), Department of Corporate Secretaryship, PSG College of Arts & Science, Coimbatore641014
4III B.Com (CS), Department of Corporate Secretaryship, PSG College of Arts & Science, Coimbatore641014
5III B.Com (CS), Department of Corporate Secretaryship, PSG College of Arts & Science, Coimbatore641014

ABSTRACT:Microfinance is an important tool for promoting financial inclusion and women empowerment in developing countries like India. This study focuses on examining the role of microfinance in improving women’s economic, social, and psychological status. It highlights how access to financial services such as micro-credit, savings, and training supports women in income generation and self-employment. The study is descriptive in nature and was conducted in Coimbatoredistrict. Both primary and secondary data were used for the research. Primary data were collected from 197 respondents, who are women beneficiaries of microfinance, through structured questionnaires and personal interviews. Snowball sampling technique was adopted to identify the respondents. Analytical tools such as percentage analysis, ranking method, and chi-square analysis were used for data interpretation. The findings indicate that microfinance has significantly improved women’s income, savings habits, and financial independence. It has also enhanced their confidence, decision-making ability, and participation in social activities. However, issues like over-indebtedness, high interest rates, and limited control over loans were observed. The study concludes that microfinance plays a vital role in empowerment but requires better support systems. Proper training, financial literacy, and policy support are essential for achieving sustainable women empowerment.
KEYWORDS: Microfinance, Women Empowerment, Financial Inclusion, Self-Help Groups (SHGs), Income Generation, Financial Independence, Entrepreneurship, Poverty