Role of Microfinance in Encouraging Women: A Study

ABSTRACT

This article aims to highlight the role that SHGs (Self Help Groups) and the efforts of NGOs like SEWA have played in the emancipation of women via the provision of microfinance. This is why the government and NABARD are placing such an emphasis on the SHG method and including non-governmental organisations into the programmes. In India, microfinance is still in its infancy and has yet to make a significant dent in poverty reduction. When you take into account the expertise and creativity that women bring to the table, its clear that their contributions to the business world are fascinating. Women have evolved to be adept at juggling several tasks and overcoming obstacles. In addition, banks play a significant role by making loans to SHGs at incredibly cheap interest rates. When it comes to promoting the economic empowerment of low-income women, banks play a key role. The banks profit as well since their loans are being returned. As the women gain financial independence, their sense of self-worth skyrockets. There is no turning back for women once they join a SHG. Some of the most fundamental services are provided by SHGs, including financial security, medical care for children, and access to quality education. Microfinance emphasis on low-income women offers far-reaching benefits, including increased participation in household decision-making and more agency for female business owners.

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