Role of Kudumbasree Micro-Lending on Women‟s Economic Empowerment in Kerala – A Case Study

Kudumbasree is an innovative mission to eliminate the Poverty founded by Kerala on the strong platform of the „Shree‟ of the family that is women in 1998. As the name itself indicates, it indicates „prosperity of the family‟ through women empowerment.It seeks to capitalize through small saving mobilization and micro enterprises. This paper examined the role of Kudumbaree‟s micro-credit for capability development and economic empowerment of women in KoduvayurPanchayat, Kerala, India,and also examine the socio economic conditions of the members their saving and borrowing capability, and the major issues and benefits experienced by the members. Study was based on primary survey conducted among64 poor women in rural areas of KoduvayurPanchayat, Kerala. For the purpose of analysis simple average, ratios, percentage, paired t test and garret ranking method were used. The findings revealed that sample respondents are from poor socio-economic background. Majority of them were engaged in traditional and less remunerative non-farm activities. Access of Kudumbasree credit significantly improved their employment opportunity, annual income, and saving during the post-credit period. Loan mainly used for unproductive uses. Their major problems werework not regular, low price, low profits, marketing problem, insufficient loan amount, and competition from mechanized products. They benefited from easy access of credit facility. The study concluded that Kudumbasree helps the rural women for economic empowerment but still the economic inclusion strategy combined with capabilities development among rural women should go a long way in the study area.