Impact of microfinance on the living standards, poverty alleviation and Empowerment of the poor women in Delhi

This research paper attempts to study the impact of microfinance on the living standards, poverty alleviation and empowerment of poor women in Delhi. Women happen to be the dominant clientele of any MFI as they are at the helm of the requirement of microfinance. 50 female beneficiaries of an NGO Microfinance Institution (MFI) were surveyed. The beneficiaries, residing in the Trilokpuri slums, are involved in sewing and stitching costumes for Ramleelas in Delhi and also stitch designs for footwear. Some of the respondents are residents of the Madavli slums and are involved in vegetable vending and cosmetics vending. Delhi has been chosen primarily because most studies on microfinance in India are centred around states with rural areas whereas Delhi covers a portion of the urban poor, whom very few MFIs target. Therefore, this research study aims to target them.

The analysis of the data revealed that microfinance has had a positive impact on the living standards, poverty alleviation and the empowerment of women in Delhi. It has led to an improvement in the lifestyles of these women and has made them capable of taking their own decisions and run their own businesses. This has eventually evolved them into more independent females who can take their own decisions and also contribute to the decision-making in their households. Thus, microfinance has not only led to their economical empowerment but also their social and emotional empowerment.