A Study on the Role of Micro Finance in Financial Inclusion and Empowerment of Rural Women with reference to Self Help Group Members in Palakkad District

Microfinance is a powerful instrument of social change, particularly for women. Recognizing that microfinance can empower women, women are also proving to be a good investment. Studies show that women in poor rural regions are more reliable borrowers of credit than men. Additionally, women tend to invest in sectors that improve their family welfare, such as education and healthcare. In terms of social benefits, women’s financial inclusion has significantly contributed to female empowerment by giving women additional income earning opportunities, increasing their independence, and improving their status both within their families and their broader communities. MFIs increasingly began to target women and recognized the potential of female entrepreneurs. Microfinance programs have drawn millions of women into commercial economic activities from which they were previously barred. Governments have also begun to take note of microfinance’s potential to empower women. The paper aims to study the impact of microfinance schemes on women empowerment and financial inclusion of particularly rural women. The data collected from microfinance institutions and rural women through Self Help Groups.