Economic Empowerment of Rural Women by Self Help Group through Micro Credit

10 Pages Posted: 22 Dec 2012 Last revised: 11 Mar 2013

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Date Written: December 22, 2012


Empowerment in the context of women’s development is a way of defining, challenging and overcoming barriers in a woman’s life through which she increases her ability to shape her life and environment. It is an active, multidimensional process which should enable women to realize their full identity and power in all spheres of life. The rural poor with the assistance from NGOs and various microfinance institutions have demonstrated their potential for self-help group to secure economic and financial strength. Various case studies prove that the credit availability has impact on women's empowerment. Thrift is a very important indicator of a group’s success because consistent growth in thrift is a clear indication of the growing confidence of the members in the group. Collection of thrift is a major activity of the SHGs. The poor who need money for purchase of various consumption goods quite often meet their contingencies by borrowing from professional money-lenders and others at high rates of interest. SHGs have been extremely effective in creating the habit of savings among the rural poor and mobilizing it for common good. Government and NGOs should look beyond credit and follow the 'credit with social development' approach. Policy implications and programme attributes are to be framed to achieve better results in reducing poverty and empowering women.

Suggested Citation

Murthy, Psr, Economic Empowerment of Rural Women by Self Help Group through Micro Credit (December 22, 2012). Available at SSRN: or

Psr Murthy (Contact Author)

University of Madras ( email )

Chennai, Tamil Nadu 600005

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