Sanjay Bhalla
Abstract:
The research paper will look at the role that microfinance institutions play in order to empower women in the rural areas. The paper examines how microfinance services relate to the independence of women, their power to make decisions and their socioeconomic wellbeing. This paper, by examining the existing literature and using empirical data of different developing nations, specifically India, Bangladesh, Indonesia and Ethiopia, determines the main mechanisms that the microfinance institutions play in empowering women. The results have shown that the availability of microcredit and financial services have empowered rural women to venture into income-generating activities, increase their household bargaining power, and change their social statuses in communities. Nevertheless, the study also mentions some constraints and difficulties that impact the viability of the microfinance interventions. The paper explains that there should be holistic strategies beyond credit offering to solve the structural limitations that women in rural may have. The research is relevant to the question of how financial inclusion and gender empowerment are complex issues in rural settings and provides the insights to policymakers and practitioners seeking to achieve inclusive development.
