The Government of India has been constantly trying to push the economic growth by launching various poverty alleviation schemes. But the desired targets could not be achieved because of various shortcomings in the system. This lead to the beginning of Micro Finance in India. Micro Finance sector is largely controlled by various Self-Help Groups (SHG) through an efficient mechanism for providing financial assistance to the deprived in the rural areas especially women. This is because in the early nineties the female workers employed in several self-employment activities had to lose their sustenance due to the growth of liberalisation and globalisation. These groups supported people in building their combined self-help abilities leading to their empowerment particularly women. In the present paper, an attempt has been made to analyse several causes for women empowerment through micro financial schemes. Micro finance or micro credit is deemed to be a significant instrument for the enhancement of our economy. This paper endeavours to analyse the role and impact of micro finance in relation to increasing poverty and socio-economic empowerment of women in rural India. The paper throws light on the challenges and opportunities that micro finance has to face in rural India and also the functions of microfinance for the empowerment of deprived rural people. The paper also takes into consideration the financial inclusion in rural India and suggests various means to increase women empowerment. It summarises that microfinance has brought psychological and social empowerment among women. It also highlights the influence of micro finance which is commendable in bringing certainty, assurance, spirit, skill enhancement and empowerment among women. The role of SHG members is very evident in directing and motivating the women to take part in several social welfare activities with good co-operation.
Micro finance, Women empowerment, Self-Help Groups
