Role of microfinance in women’s empowerment and poverty eradication in India

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.