Role of Microfinance in Women’s Empowerment and Poverty Eradication in India

  • Aerra Mahendar
Keywords: Microfinance, self-help groups, financial inclusion, women empowerment, poverty eradication


Microfinance is considered a panacea for poverty alleviation through financial inclusion.
Among the multiple disparities that hinder inclusion, gender inequality is the most
pervasive. Therefore, the reach of microfinance through women’s collective is seen as
ideal for achieving zero poverty. The Self Help Group (SHG) -Bank Linkage program in
India is a model for microfinance that promotes the tripod of microfinance, women
empowerment, and poverty alleviation for inclusive and sustainable development. Against
this backdrop, this study analyzed the role of microfinance in empowering women and
eradicating poverty in the Nizamabad district in Telangana, India. This survey design
studied 303 women SHG members selected through stratified random sampling. The
results confirmed that SHG women’s shift to better economic activities significantly
increased their income. Their contribution to household savings has blazed a creative
path for poverty alleviation.

Author Biography

Aerra Mahendar

Junior Lecturer, Govt. Junior College, Bhiknoor, Dist. Kamareddy, Telangana State,