Paradigms of Women Empowerment through Microfinance and SHGs

Abstract

Microfinance is a type of banking service that is offered to the low-income or unemployed population who otherwise have no means for accessing financial services. Microfinance through self-help groups (SHGs) has been widely recognized as a key strategy for addressing poverty and empowerment of rural women. Microfinance and SHG which are considered as two sides of the same coin function with the main aim to empower women. The purpose of the current review is to synthesize findings from previously published literature and put forward how microfinance offered by SHGs has been extensively recognized as a strategic tool for empowering women. It seeks to examine the influence of microfinance on rural and marginalized women with respect to poverty alleviation, financial sustainability, entrepreneurial ability, and health. The review findings show that there is a definite improvement in the financial well-being and overall empowerment among the rural women as a result of participating in microfinance through SHG group.