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The Role of Microfinance in Women Empowerment: A Study on the SHG Bank Linkage Program in Hyderabad (Andhra Pradesh)

Author

Listed:
  • M.Aruna

    (Faculty Member in Economics, Icfai Business School IFHE deemed University, Hyderabad, India)

  • Rema Jyothirmayi

    (Lecturer In Economics, S.P Jain Degree College Banglore, India)

Abstract

Micro finance programs are treated as a key strategy in addressing development issues across nations since the last three decades. This study attempts to explore on the much debated question of the role of microfinance as a financial intermediary for enhancing women empowerment A primary survey has been carried out to capture the realistic experiences and observation from the beneficiaries of Micro sate branch of Hyderabad, a unique initiative of Indian Bank for microfinance operations intended to improve the status of women. The empirical findings of the study suggests that microfinance has a profound influence on the economic status, decision making power, knowledge and self worthiness of women participants of self help group linkage program in Hyderabad. The microfinance related loan availement and its productive utilization found to be causing significant differences in women empowerment levels, measured through women empowerment index (WEI), of the loan availed participants as compared to the non- loan availed. The study confirms that as an anti poverty tool, microfinance has its own limitations to reach the bottom of the poor. However, it is found effective in graduating the poor, not the poorest, and lower middle class to a higher standard of living. Though different studies at various places and points of time differ in their conclusion, the present study acknowledge that despite of bottlenecks, microfinance is capable of graduating struggling poor from their shackles and helps to upscale them to a better living and playing significantly positive role in upgrading women empowerment.

Suggested Citation

  • M.Aruna & Rema Jyothirmayi, 2011. "The Role of Microfinance in Women Empowerment: A Study on the SHG Bank Linkage Program in Hyderabad (Andhra Pradesh)," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 2(4), pages 77-95, May.
    • Handle: RePEc:aii:ijcmss:v:2:y:2011:i:4:p:77-95
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    References listed on IDEAS

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    1. Pitt, Mark M & Khandker, Shahidur R & Cartwright, Jennifer, 2006. "Empowering Women with Micro Finance: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 791-831, July.
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    4. Katsushi Imai & Thankom Arun, 2008. "Does Microfinance Reduce Poverty in India?," Economics Discussion Paper Series 0814, Economics, The University of Manchester.
    5. Goetz, Anne Marie & Gupta, Rina Sen, 1996. "Who takes the credit? Gender, power, and control over loan use in rural credit programs in Bangladesh," World Development, Elsevier, vol. 24(1), pages 45-63, January.
    6. Peter Crabb, 2008. "Economic Freedom And The Success Of Microfinance Institutions," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 205-219.
    7. repec:pri:rpdevs:morduch_microfinance_poor is not listed on IDEAS
    8. Jonathan Morduch, 1998. "Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh," Working Papers 198, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
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