Empowering Women Through Self-help Microcredit Programmes

Self-Help Groups and microcredit: Routes to women empowerment
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The paper states that extending of micro credit loans through self-help groups (SHGs) has a positive impact on the lives of the rural women by empowering them with skills and by elevating them to a higher status in the society. The advantages of self-help groups are:

  • reduce vulnerability of poor: skills imparted enhance income generation and asset creation.
  • help in repaying short-term loans.
  • enable saving.
  • help in enhancement of socio-economic status: members play a major role in decision making both at the household and the societal levels.
  • impart a sense of security: women work for a common purpose.

To have a sustained women empowerment the author suggests that local bodies and government coordinate and support to combat poverty and poor women:

  • operate their own enterprises.
  • participate outside self-help groups.
  • be the leaders.
  • form collective agencies to deal with oppression.
  • complement microfinance with auxiliary services and non-financial services for transition out of poverty.

About this Publication

By Kay, T.