Empowering Women Through Self-help Microcredit Programmes

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.